Permanent TSB has accepted a recommendation from the Labour Court that certain grades of staff should receive a pay increase of 2.2 per cent and a lump sum payment of 4 per cent to settle a dispute with union Unite.
The salary increase will be pensionable and backdated to January 1st of this year for those at levels four and five within the bank, which is 75 per cent State owned.
These are effectively entry-level grades – up to and including assistant manager – but it is understood that the pay deal is likely to be extended to other employee groups below senior management level.
In a recommendation dated September 12th, the Labour Court said the lump sum payment should be made by the end of October.
Unite had sought an increase in basic pay of between 10 and 12 per cent, and the restoration of incremental salary increases.
Unite are balloting members on the proposal. The ballot will close on Friday with a result on Monday. It is understood the union has not issued a recommendation to members on the proposal.
Conciliation talks
The dispute could not be settled at local level and was the subject of conciliation talks at the
Workplace Relations Commission
. It was then referred to the Labour Court on August 3rd, with a hearing taking place at the end of that month.
The pay increases recommended by the Labour Court are in line with similar deals agreed by unions with AIB and Bank of Ireland.
The decision of the Labour Court followed an earlier recommendation of the Workplace Relations Commission, which proposed an increase of 2 per cent for the employees.
In July PTSB announced a return to profitability for the first time since 2007 with an after-tax surplus for the group of €80 million for the six months to the end of June.
