AIB and union to attend WRC over call for revision of pay agreement

Representatives of AIB and the Financial Services Union (FSU) will attend the Workplace Relations Commission on Tuesday as the union seeks to have the terms of a three-year deal on pay agreed in 2022 revised in the wake of higher than expected inflation.

The deal provided for total increases for non-management staff of 10 per cent over its term but included other terms such as the raising of entry level pay to €28,000 and a one-off payment of €1,000 to help address the increased cost of living.

The FSU contends that the circumstances in which the deal was originally negotiated subsequently changed as the rate of inflation, driven by substantial rises in the costs of housing, food and fuel, soared.

“The pay deal was reached when inflation was considerably lower than it is currently, and the cost-of-living pressures were not as acute,” it said in a statement. “It is clear the three-year pay deal is no longer sufficient to meet staff needs, and it is regrettable that AIB have refused to engage constructively on the issue.

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“AIB is a very profitable company, owned by the Irish State. It should be actively supporting its staff through this challenging time and setting the standards for others to follow.

The union argues that Bank of Ireland agreed a revision of the terms of its agreement for 2023 earlier this year. The two-year deal at that company had provided for a 4 per increase in 2022 and 3.5 per cent this year, but the 2023 element was raised to 5 per cent with staff also receiving a €720 tax-free voucher. There were a number of other elements to the agreement.

AIB paid the increases due under the terms of its existing deal for 2023 in April, and is understood to be planning the introduction of new healthcare benefits and a variable remuneration scheme next year.

The company is, however, to attend Tuesday’s talks.