Government may intervene in ACCBank row

The Minister for Finance may be asked to intervene in a dispute at ACCBank, with unions representing its workforce likely to seek a greater commitment from TSB on its merger intentions.

Progress on the merger has been stalled, as staff at ACCBank are refusing to co-operate in merger discussions, objecting to the proposed installation of the computer system used by TSB. ACC unions have objected to the way the decision was made to use the TSB system, arguing that staff concerns were not sufficiently taken into account. Meanwhile, an inter-union dispute continues within ACC, with indications that the majority of the 350 ACC staff who are members of the Amalgamated Transport and General Workers' Union (ATGWU) are to defect to SIPTU.

Some 250 of ACC's ATGWU members have already applied to join SIPTU, exacerbating tensions in the inter-union group which is representing staff in the merger process. The ATGWU is disputing the contents of a document sent to their members, asking them to switch to SIPTU.

The disputes have the potential to wreck the merger and flotation plans. The bank is due to float in May 2000.

The trade unions at ACCBank, which were the originators of the merger proposals presented to Mr McCreevy last year, are coming under pressure from staff members, as the impact of the plans are felt. Some staff have questioned the basis on which the merger is being managed, given the unusual structure that is currently in place. Under the merger agreement, TSB effectively retains a veto that allows its operations to remain totally separate from ACC's until the flotation happens in May 2000.

At the same time, the State-owned bank is being asked to adopt the TSB information technology systems, which will have an immediate impact on its IT staff and the bank's day-to-day business.

Behind-the-scenes discussions are continuing in an effort to resolve the impasse and allow some progress on the implementation of the merger plans. The unions have also made representations to the Minister for Finance outlining their concerns.

The trade unions are pressing the Minister to secure a firmer commitment from TSB that the merger will be completed. The danger, from the union perspective, is that, if the project unravels, the State-owned bank's day-to-day business will have been weakened by a competitor. Such a commitment from TSB, together with details of any voluntary redundancy package and career options for ACC's IT staff who are affected, could go some way towards resolving this dispute.