Below is a full copy of the letter issued to Tony Hession, Group Head of Human Resources at Irish Life & Permanent by the Unite trade union last night.
16th February 2009
Dear Tony,
I refer to our meeting this morning, at which we raised concerns about developments over the past week in Irish Life & Permanent, and the impact of these developments on the future employment prospects of our members. As agreed at our meeting, I have set out background summary and a list of these concerns as follows:
1. From the time that the Government announced the Covered Institutions Guarantee Scheme on 29 September 2008, the Authorities assumed a new role in relation to governance and ownership of the appropriate financial institutions.
2. In November 2008, the Authorities commenced high level discussions with the Chairman and CEO of each Covered Institution individually. There was widespread media speculation of a forced consolidation between Bank of Ireland (supported by significant private equity investment), Irish Life & Permanent and EBS Building Society. This speculation was given credence by the Irish Life & Permanent Chairman and CEO bringing legal representation to the subsequent meeting with the Authorities.
3. In November 2008, mindful of the significant job losses that such a consolidation would inevitably incur, we wrote to the Chairman and CEO of the above three covered institutions advising that we would respond with a mandate for industrial action to any consolidation or change in structure that might lead to compulsory redundancy or enforced job loss. We copied this letter to you and to the Minister for Finance.
4. Throughout the current crisis, we have responded with haste to every Industrial Relations challenge that has been placed before us. Our members accepted without question significant redeployment. We have engaged with customers in the most positive manner achievable in challenging and trying times. We reached almost immediate agreement in relation to the reincentivised career break scheme on the basis that any positions lost would be achieved on a strictly voluntary basis. We understand that over 100 such departures are arising.
5. We have been engaging with you in a facilitated process over the past month covering all elements of reward due to our members this year. This process has jointly enabled us to face the challenging industrial relations issues in front of us in and a calm and discrete manner.
6. When it became clear that the Government intended to announce capitalisation proposals specific to AIB and Bank of Ireland only, we shared your extreme concern that such a measure that excluded any reference to Irish Life & Permanent would send a negative message to the Stock Market and Ratings Agencies regarding the future of Irish Life & Permanent. Unite Trade Union, assisted by ICTU, used considerable influence with the Authorities to ensure that any capitalisation proposal limited to AIB and Bank of Ireland would signal a plan for the future capitalisation of Irish Life & Permanent. We were successful in this campaign.
7. From the outset of the current facilitated negotiations process, we have been astonished at the failure of Senior Management in Irish Life & Permanent to honour the communications standards agreed in that forum.
8. Last Wednesday, on the eve of the announcement of capitalisation plans for AIB and Bank of Ireland, we were shocked at media announcement of irregular transaction between Irish Life & Permanent and Anglo Irish Bank. We were astonished and extremely disappointed at the remarkable stance of the Board in addressing these issues on Thursday. The pace at which the resignation of the CEO was announced only served to exacerbate the enormous negative attention that the organisation attracted in the media and in the Dail.
It is the view of this Union that the Board risked sacrificing the security and tenure of the jobs of our members in an attempt to support the now resigned CEO. On behalf of this Union and our representatives, I wish to formally advise you that the Chairman and Interim CEO no longer retain the confidence of the 2,500 members of this Trade Union.
If you have any doubt about the strength of feeling of our members about this position, we will have no difficulty in immediately conducting a ballot amongst our members. It should be clear to you that members of this Trade Union have conducted themselves in exemplary fashion throughout the current financial crisis, and have no apologies to make to any stakeholders. This statement does not hold true for Senior Management.
We remain committed to the facilitated process for addressing all elements of reward this year, and the timescale to 5 March which has been agreed. You should be in absolutely no doubt whatsoever of our already stated position that:
a) All pay increases due this year can and should be paid in full.
b) If there is any agenda in relation to any future job loss, we will continue to engage with you on the basis that such an agenda is confined to departures of a strictly voluntary nature.
c) Any proposal that leads to potential for compulsory or enforced job loss will be immediately responded to with a ballot industrial action.
I would be grateful if you would convey this letter to the Board of Irish Life & Permanent. It is our intention to circulate this letter to all members.
Please feel free to contact me for any further information or clarification
Yours sincerely,
COLM QUINLAN
REGIONAL OFFICER