Bank of Ireland's information technology (IT) division workers are set to transfer to Hewlett Packard (HP) after voting for a deal that will net them between €5,500 and €10,000 in loyalty payments and guarantee their future job security for up to five years.
Irish Bank Officials' Association (IBOA) general secretary, Mr Larry Broderick, announced yesterday that a majority of its 260 members in the division has agreed to the terms of the so-called "Mulvey recommendations" hammered out between the parties after a one-day strike last month.
HP is set to take over the bank's IT function next year, a move that will see 320 workers transfer from the bank to the multinational.
Around 260 of the staff involved are IBOA members. They voted to strike last month after negotiations over their future job security and terms and conditions of employment broke down.
The issue went to Labour Relations Commission (LRC) chief executive, Mr Kieran Mulvey, who acted as an independent chairman.
He recommended that the affected workers get a €500 payment in compensation for the loss of certain benefits, and €500 for each year of service, with a minimum severance of €5,500.
Bank of Ireland said in a statement that it would fully implement these terms. The bank would not reveal the total cost of the severance package, but sources estimated that it would be €2 million.
A number of workers have 20 years' service, while a total of 73 have over ten years. A majority of them will get the €5,000 minimum.
However, the union yesterday stressed that the key elements of the package related to the guarantees given the workers about jobs security and union recognition.
Any worker facing compulsory redundancy during the third year of service with HP will be entitled to seek redeployment in Bank of Ireland.
A number of older workers, who previously transferred with the division to Perot Systems in 1998, will have a passport back to the bank for up to five years.
The deal will also apply to 13 network staff transferring to Esat/BT.
An IBOA statement said that its members' full acceptance was predicated on HP implementing Mr Mulvey's recommendations dealing with union recognition.
That points out that IBOA representatives have met with HP executives to discuss terms and conditions of employment.
Mr Mulvey calls for this arrangement to be formalised at the earliest possible date.
