Pension contributions at AIB a key issue in talks with union on outsourcing IT jobs

Protecting pension contributions of up to 21 per cent of salary is set to be a key issue in talks between the Irish Bank Officials Association and Eircom, Integrity and Wipro over the outsourcing of 170 IT roles at AIB.

This emerged on Wednesday in a podcast interview by The Irish Times with Larry Broderick, general secretary of the IBOA. The union met representatives of Eircom, Integrity and Wipro on Wednesday to discuss the outsourcing plan that was announced on Tuesday by AIB.

AIB operates a defined contribution pension scheme that includes an annual payment from the bank of up to 18 per cent of salary. Employees pay an additional 3 per cent into the scheme.

“In the technology industry that is a very significant benefit, so there would be some concern that this would be difficult to replicate in these talks,” Mr Broderick said.

Mr Broderick said the talks with Eircom, Integrity and Wipro “commenced positively” but reiterated that there would be no co-operation to the outsourcing arrangements until a full agreement was in place.

He said about 500 AIB staff had been affected by outsourcing in the past 12 months. “I think it’s likely that there will be hundreds of other staff potentially impacted by further outsourcing. It’s here to stay.”

Mr Broderick also confirmed that the IBOA would be seeking a pay increase from AIB.

“The last pay increase to staff was in 2008. Since that time there’s been a freeze on increments and on any pay increases, and no bonuses or any incentive payments whatsoever.”

He said the IBOA would seek a new structure for pay and to put a “cost of living or co-operation payment in place”.

“Any pay deal we do has to cover 2014, 2015 and maybe 2016,” Mr Broderick added.