AIB staff set for average 3% pay increase
Deal contains performance-related element and fixed-rate rise
The average 3 per cent pay increases apply to as many as 8,000 employees across AIB’s bottom three staff levels which are covered by a collective bargaining agreement.
The majority of AIB’s workforce of about 10,000 employees is set for a 3 per cent pay increase this year, following negotiations between the bank and the Financial Services Union (FSU) brokered at the Workplace Relations Commission (WRC).
Anna Perry, director of conciliation at the WRC, has recommended that employees at the 71 per cent State-owned lender receive an average 3 per cent hike, comprised of two parts: a performance-related increase and a fixed element to cover the rising cost of living.
Meanwhile, some employees will enjoy an additional increase as AIB presses ahead with plans this year to disband its complex web of staff grades for a streamlined career structure in order to simplify the organisation and improve transparency and consistency. The new system will comprise seven levels, from entry-level positions to the role of chief executive.
The average 3 per cent pay increases apply to as many as 8,000 employees across the bottom three staff levels which are covered by a collective bargaining agreement between AIB and the FSU.
It is understood that about a fifth of these employees are currently on a salary below the minimum proposed ranges for the three staff levels. These employees will have their salaries brought up to the minimum, backdated to January 1st, according to Ms Perry’s blueprint. Salaries across the three levels span from €25,410 to €73,134 in the Republic.
Negotiations between both sides on pay had been referred to the WRC in November after they concluded without agreement. The FSU will ballot its members on the proposals from early next month, the FSU said on Thursday.
The proposals “represent significant progress from the employer starting position on a number of issues affecting our members in AIB regarding new career structures and pay levels,” said Billy Barrett, a senior FSU official.
A spokesman for AIB said the bank welcomed the WRC recommendations.
AIB had a total bill for staff wages, salaries and benefits of €790 million in 2017, according to its most recent annual report. Sources said higher-ranked employees would also benefit from increases in line with the proposals for the three levels covered by the FSU talks.
With inflation running at a higher rate in the UK than in the Republic amid uncertainty over Brexit, AIB staff in its Northern Ireland and Great Britain units will see a 1.5 per cent flat-rate pay increase under the new pay proposals, compared with 1 per cent for those in the Republic.
Meanwhile, Ms Perry has urged AIB and the FSU to resolve by the end of March some remaining differences .
It is understood that AIB is looking for discretion in relation to pay increases where employees are given additional responsibilities within a level, rather than a promotion. The FSU, however, is looking for set arrangements.
In addition, the bank is proposing the removal of all service-related increases to annual leave, which the FSU is resisting.