Central Bank warned over pay changes

Trade union Unite has warned the Central Bank of Ireland its members will take “any action necessary” if the financial regulator seeks to impose changes to traditional pay structures.

In a letter sent on Wednesday to Brian Gallagher, the Central Bank’s employee relations manager, Unite’s regional officer, Colm Quinlan, said there was a “deep sense of unease” among its members about the regulator’s plans to introduce a new reward model.

Unite, which represents the majority of the Central Bank’s 1,500 staff, is concerned the traditional pay structures, involving increments, inflation indexation, special pay agreement and promotion, will be scrapped. The union is worried this model could be replaced with one that would see the wages of staff pegged to market-based data, or involve performance-related pay.

Fempi cuts

“We expect that existing pay adjustment standards will remain in place for all staff, including restoration of pay cuts imposed through Fempi [financial emergency legislation], continuation of increments, inflation-proofing, and that the established grade structures will continue to offer internal mobility, career advancement and promotional outlets,” Mr Quinlan said.

“We believe that to alter the established reward systems . . . would only serve to exacerbate the [staff] attrition challenges faced by the bank.”

Mr Quinlan urged the Central Bank to listen to Unite’s concerns about what it believes is the “imposition of an unfair and ill-considered reward model”.

Speaking to The Irish Times, Mr Quinlan said the union would ballot for industrial action if the Central Bank sought to impose a new pay system without agreement.

Outcome pre-empted

He said a general meeting of members would be held in February to consider this issue.

The Central Bank responded by saying Unite appeared to be “pre-empting the outcome of a review which is still in the redesign phase”: “When this phase is complete we have advised Unite that a constructive engagement will commence.”

The Central Bank began an organisational review in 2014, with recommendations including a redesign of how the organisation is structured. It is seeking to move from a grade-based to a role-based organisation with flatter structures and wider spans of control. An organisational redesign was piloted in the first half of 2015. It is expected the future structure will be fully defined by the middle of this year followed by the implementation phase in the second half of 2016.

Unite has been at odds with the Central Bank over retention payments to certain staff since 2011. The union has described them as “secret bonuses” that breached a Government ban. In November, Unite members passed a motion of no confidence in the Central Bank’s leadership.