Bank of Ireland (B of I) has been told by the Labour Court to allow new staff to join a pension scheme that it closed to new entrants last October.
In a recommendation issued this morning, Labour Court chairman Kevin Duffy said the original pension arrangements had clearly become an established condition of employment.
IBOA general secretary Larry Broderick
B of I had argued that the defined-benefit pension scheme, which guarantees a certain portion of an employee's salary on retirement, was too costly, and it sought to bar employees recruited after October 1st last year from the plan.
The Irish Bank Officials' Association (IBOA) welcomed the Labour Court recommendation.
"In particular, IBOA welcomes the court's view, that existing agreements must be honoured by the bank prior to change taking place, IBOA general secretary Larry Broderick said.
"IBOA for its part is prepared to enter into talks on the pensions issue with Bank of Ireland, in line with the Labour Court's recommendation," he added.
"IBOA believes this process is an opportunity to address the pensions issue in a meaningful and responsible manner, in line with existing agreements and IBOA hopes the bank will respond positively to the court's request."
The Amicus trade union said: "In our formal submission to the Labour Court, we asked the court to recommend the established scheme be reopened to those who have joined the bank since October 1st, and that this be done ahead of engagement on the substantive issues relating to the long term security of the pension schemes," said John Murphy, chairman of the committee.
"Having reviewed today's recommendation from the Labour Court, we are satisfied that the issues we specifically raised have been satisfactorily addressed, and have now formally accepted the recommendation on behalf of our members in Bank of Ireland Life, ICS Building Society and Bank of Ireland Head Office."
Labour Party employment spokesman Ruairí Quinn said he was "delighted" the Labour Court has instructed Bank of Ireland to allow all its new staff to join the defined benefit pension scheme.
Green Party employment spokesman Eamon Ryan said the Labour Court had "rightly condemned the practice of a two-tier system of pensions for employees and has reasserted company's obligation to honour their workers' pension entitlements".
He called on the Government to state its own position on companies who seek to implement tiered pension schemes or to exclude employees from schemes altogether.