The State's biggest bank has agreed a pay deal with its workers that steps outside the terms of the national agreement. Barry O'Halloran reports

AIB and the Irish Bank Officials' Association (IBOA) have agreed a deal that will see staff get a 2.5 per cent rise in pensionable pay across the board, and give them the option of joining a generous bonus scheme.

The general pay rise will be backdated to the first of this month, and the bonus scheme will mean average extra payments of 4 per cent. Staff already get a profit share - this year it was 5 per cent.

The deal, the result of two years' talks, also increases entry-level pay scales by 15 per cent. This means that those starting their careers will start at €21,637 on a scale that goes up to €41,700.

Salary levels for officer grade will rise by 7.5 per cent, starting at €34,645 and rising to €51,365. The assistant manager scale also increases by 7.5 per cent. It will start at €40,089 and rise to €59,011.

Both the bank and the union confirmed yesterday that the deal was independent of the national pay agreement, Sustaining Progress, which ends this month.

An AIB spokesman said the deal was independent of both the current agreement and its successor.

The benefits will be paid in addition to any pay increases agreed in the successor to Sustaining Progress. The AIB spokesman said that these would be paid "as a matter of course".

During the talks chaired by Kevin Foley of the Labour Relations Commission (LRC), trade unionist Dave Hughes represented the IBOA and Bernard McGinty of employers' group Ibec represented AIB.

The trade union intends seeking similar deals from AIB's competitors. General secretary Larry Broderick said yesterday that it had written to the other banks seeking an immediate review of their scales. "We will be pressing claims where appropriate in the coming weeks," he said.

The deal hinged on workers agreeing to the voluntary performance-related pay system. Bonuses will be tied to targets set yearly by AIB's board.

The performance scheme will be known as "career framework". An AIB spokesman explained yesterday that under this system, job roles would be managed with a career plan set out under this scheme.

"Staff can develop the skills that will benefit them and benefit the bank," he said.

He pointed out that the deal's terms were above average because of the high level of competition for staff.