Staff at Northern Bank have signalled their strong opposition to plans by its parent, National Australia Group (NAG), to close its defined-benefit pension scheme to new employees.

The Irish Bank Officials Association (IBOA) asked its 1,500 members at the bank to ballot on the move, which it said the bank has sought to introduce without any consultation. Some 98 per cent of them rejected the proposal.

The ballot was conducted ahead of a meeting between the IBOA and NAG's new chief executive in Europe, Mr John Stewart today.

The union's general secretary, Mr Larry Broderick, said the result of the ballot showed the strength of feelings among its members on the issue.

"The decision has been taken by senior management to enhance profits and increase bonuses on the back of staff salaries. I hope that, even at this late stage, NAG's senior management will re-consider their proposals and engage in serious negotiation with the IBOA," he said yesterday.

The bank has not signalled any intention to alter the arrangements at National Irish Bank, its subsidiary in the Republic.