Staff at Bank of Ireland are to be balloted on possible industrial action in a row over the level of stock to be awarded to staff under the company's gain-share scheme.
As part of Bank of Ireland's group transformation programme, staff were to receive up to 6 per cent of salary annually in stock, in addition to the introduction of a 35-hour week in return for co-operation with changes such as voluntary redundancies, out-sourcing, branch closures, relocations and business unit amalgamation.
However, earlier this year, the bank decided, on the basis of its financial results, to pay a staff stock issue of 3 per cent in 2008 - a move strongly opposed by unions at the company.
The Irish Bank Officials’ Association (IBOA) said this morning it was balloting its Bank of Ireland members in the Republic, Northern Ireland and Britain “to determine their attitude to the action of senior management and the response to be taken by the Union.”
Independent mediator Kieran Mulvey, who brokered the original transformation deal, said in a report earlier this week the positions of the parties were 100 per cent apart. He said he was not in a position to issue a determination on the issue.
IBOA General Secretary, Larry Broderick, said today that the inability of Mr Mulvey to make a determination on the issue had caused widespread consternation among Bank of Ireland staff.
“The members of our Bank of Ireland Executive Committee have reported growing dissatisfaction among Bank of Ireland staff at the refusal of senior management to move beyond its unilateral decision to halve the gain-share allocation,” he said.
“For staff, this is the final straw in a litany of recent developments in Bank of Ireland which have seriously eroded their confidence in the current senior management team.
“The case for the payment in full of the 6 per cent gain-share is overwhelming.
“Our members have more than delivered on their side of the bargain – but this penny-pinching board is attempting to welch on the deal – despite announcing a further increase in profits last year even after exceptional profit growth in 2006-7,” Mr. Broderick said.