Up to 6,000 Ulster Bank staff across Ireland face a 10 per cent pay cut unless they sign an inferior new contract, a union claimed tonight.
The fresh deal would reduce the value of their pensions and worsen terms and conditions, The Irish Bank Officials’ Association (IBOA) added. It has voted to resume talks on pay and pensions.
Ulster Bank said it will not be re-entering the mediation process but would talk to employees directly.
IBOA general secretary Larry Broderick said: “Members have given a clear message that they reject management’s attempt to break agreements with the union and to impose new contracts unilaterally without full consultation, negotiation and agreement with IBOA.”
He said staff have been warned by management that a significant element of their pay - equivalent to 10 per cent of their annual salary - is to be withheld unless they agree to sign up to a new inferior contract which will not only worsen their terms and conditions in future but will also dramatically reduce the value of their pension on retirement.
He added: “This despite the fact that under current contracts these staff, most of whom are on mid to low range salaries between €21,000 and €37,000 are entitled to the payment.”
The union said the bank had already shed 1,000 posts north and south of the Border which delivered considerable cost savings.
Mr Broderick said staff at Ulster Bank had voted by 99% to mandate the union to engage in talks.
An Ulster Bank spokeswoman said: “Following a period of mediation between Ulster Bank and the unions regarding pay and reward for 2009, mediation ended without agreement on a number of key issues.
“Given the position of both parties on these issues, we do not believe a resolution is possible and will not be re-entering the mediation process.
“We will continue to discuss pay and reward 2009 directly with our employees.”
PA