A radical restructuring plan is to be introduced at Ulster Bank which will lead to job losses and possibly pay cuts. Irish Bank Officials' Association (IBOA) representatives at the bank will meet tomorrow to discuss the proposed changes. IBOA assistant general secretary, Mr Larry Broderick, has warned that any attempt to change its members' terms and conditions of employment will be vigorously opposed by the union.

"It is outrageous that the bank should be even considering these options at a time when it is making massive profits," he said yesterday.

"Our meeting on Saturday will enable us to finalise our strategy for a campaign of opposition to Ulster Bank's intended cutback."

In a statement, Ulster Bank confirmed it was in discussions with the IBOA on a "customer-focused change programme" that had been endorsed by its parent, Royal Bank of Scotland. It insists this will not lead to branch closures.

A voluntary severance scheme has been put in place and the bank states it has "no desire" for compulsory redundancies.

"It is the bank's intention to grow its business significantly in the next few years, primarily by developing an even stronger customer focus. It is anticipated this will create more than 100 additional jobs in the group over the next five years."

The restructuring will involve centralising administrative functions. The operation of two head offices, one in Dublin and one in Belfast, will also be reviewed and individual functions merged into one unit.

Mr Broderick says staff fear that not only will there be job cuts but that some people may be asked to accept pay cuts, possibly by accepting a lump sum payment to waive their entitlement to ongoing pay increases.

Royal Bank of Scotland, which purchased Ulster Bank last year, gave the IBOA a guarantee that there would be no compulsory job losses at the bank in the first three years. The union is now concerned that many of its members will be substantially worse off as a result of the proposed changes.

Similar cost reduction plans are under way at Bank of Ireland and follow rationalisation at First Active and Irish Permanent. When the bank announced profits of €156 million (£123 million) for the six months to the end of June, Ulster Bank chief executive Mr Martin Wilson said it intended to move aggressively to expand its operations.

It has already restructured its 121-branch operation to be more sales oriented. It also closed five of its 209 sub-offices because they were not economically viable.

The bank said that any further restructuring would mean faster, more convenient service for customers.

"For staff it will mean the centralisation of much of the routine administrative work currently carried out by branches, thus releasing them to dedicate more time to customers," it said.