Bank staff threaten industrial action

STAFF AT Ulster Bank have threatened industrial action after the bank terminated talks on pay and conditions that were being chaired by Kieran Mulvey, chief executive of the Labour Relations Commission.

Ulster Bank, a subsidiary of Royal Bank of Scotland, informed staff yesterday that it would negotiate individually on their pay and conditions over the coming weeks. It withdrew from the Mulvey talks on Thursday.

Larry Broderick, general secretary of the Irish Bank Officials Association (IBOA), criticised Ulster Bank for its decision.

“The bank’s actions are extremely disconcerting for staff who feel betrayed by a senior management team which, even after receiving staff co-operation in agreeing over 1,000 redundancies this year, has still refused to give a commitment on future job security beyond the end of this year.”

Ulster Bank has sought a pay freeze for this year and next and also wants to implement changes to its defined benefit pension scheme for existing members.

The bank has proposed closing the scheme to new entrants.

The two sides are also in dispute over a profit-sharing arrangement.

In a statement, Ulster Bank said: “Ulster Bank can confirm that following a period of mediation with the unions in relation to pay and reward for 2009, we have been unable to reach agreement on a number of key issues and mediation has ended without agreement.

“We are seeking to introduce pay arrangements linked to market conditions and performance and we are now entering discussion directly with our employees.”

It is understood that the IBOA will move to ballot its members on possible industrial action towards the end of next week if there is no breakthrough in the impasse.

Mr Broderick said:“We have written to Mr Mulvey indicating our availability for further talks if Ulster Bank reconsiders its current position. We have urged the bank to return to the negotiating table.

“But we have also made it clear that, if the bank proceeds with this attempt to impose a non-negotiated settlement, we intend to respond forcefully and to seek support from our colleagues in the wider trade union movement.”