IBOA opposes B of I pension plan

The main union at Bank of Ireland will ballot members for industrial action over the bank's plans to implement pension proposals for new staff.

The Irish Bank Officials Association (IBOA) said it wanted the issue resolved by the Labour Court or the National Implementation Body.

IBOA general secretary Larry Broderick said members had demanded action over what he called "drastic" changes to the bank's pension scheme.

If industrial action goes ahead, it will involve 8,000 staff.

The union opposes the bank's plan to close its defined benefit scheme to new staff and offer instead a "hybrid" scheme, that is a less favourable defined contribution model.

"The breathtaking arrogance of the bank in contemptuously proceeding with its plans without allowing the industrial relations institutions of the State to complete their deliberations is astounding and illustrates the contempt the bank has for its staff, current agreements and the very institutions established by Government to promote industrial peace," Mr Broderick said.

He also warned that the IBOA would now proceed with a claim for a substantial pay increase across the board to bring Bank of Ireland salaries up to the levels enjoyed at rival AIB.

The IBOA's Bank of Ireland executive committee has recommended members to support the ballot for action.

Bank of Ireland said it was disappointed at the IBOA's decision.

It claimed the new pension scheme was in the best interests of all employees, current and future.

It said new employees who contributed the full top-up amount had the prospect of a 66.7 per cent pension after 45 years service plus index linking and State pension.

It said existing employees were not affected and retained their existing pension scheme.

Payments from defined benefit schemes are linked to salaries, while defined contribution scheme payments are dictated by the investment performance of the underlying fund and offer less security.