As we’ve noted on several occasions already, Irish banks are trimming their redundancy payments. AIB is rumoured to be paying only three weeks per year of service (down from 8 weeks last year). Ulster Bank is said to be paying 3 weeks. Bank of Ireland is said to be paying 4.
Now, however, these reduced redundancy payments are causing a problem. The Sunday Times reported yesterday that the Irish Bank Officials (IBOA) union has rejected the offer of 3 weeks’ pay for each year of service at Ulster Bank. The IBOA is arguing that the terms should be more generous because the state of the Irish job market will make it difficult for redundant staff to get re-employed.
Ulster Bank is making 950 people redundant. AIB is making 2,500 redundancies. The Irish Bank Officials Association estimates that banks have cut 6,000 jobs since the start of the banking crisis in 2008.
However, there is a sprinkling of light in the gloom: the Irish Funds Industry Association estimates that the funds industry in Ireland added 1,200 net new jobs last year. Even as Ireland’s banks are cutting jobs, international fund administrators in the Republic are adding them.