Permanent TSB has paid increases to majority of staff

Permanent TSB has paid increases to a majority of its staff even though members of the Unite union have rejected a proposal on pay and performance recommended by the Labour Court.

It is understood that Siptu members in the bank yesterday accepted the Labour Court recommendations. Staff represented by Mandate had already agreed to the proposals.

However, Unite’s near 1,000 members in PTSB rejected the deal on Monday and it is by far the biggest union in the bank, which is 75 per cent State owned.

The proposal includes a pay rise of 2.2 per cent for staff effective from January 1st of this year, and a 4 per cent lump sum payment. There are also proposals around performance management and a career framework, which Unite members are believed to be unhappy with.

In a statement to The Irish Times PTSB said: "These proposals were the outcome of a prolonged negotiation process which saw the very constructive involvement of both the Workplace Relations Commission and the Labour Court, and which closely reflected similar settlements agreed with staff and their unions in other banks.

“It is regrettable that the outcome of the Unite ballot was to reject the labour Court recommendations. At this time the majority of staff in Permanent TSB have already received the payments recommended by the Labour Court.”

Rejection

No comment was available from Unite yesterday. However, earlier this week the union said it would seek “meaningful engagement” with PTSB management following its members’ rejection of the Labour Court’s recommendations.

Unite had sought a basic pay rise of between 10 and 12 per cent and the restoration of incremental salary increases.

The pay increase recommended by the Labour Court was in line with similar deals agreed by unions with AIB and Bank of Ireland recently.

The decision of the Labour Court for PTSB followed an earlier recommendation of the Workplace Relations Commission which proposed a pay increase of 2 per cent.

In July PTSB announced a return to profitability for the first time since 2007 with an after-tax surplus for the group of €80 million for the six months to the end of June.