THE IRISH Bank Officials’ Association (IBOA) wants a place at the table as the Government negotiates the parameters of the National Asset Management Agency (Nama) plan for development and investment property loans in the banking system.
Amid concern in bank staff circles that Nama’s establishment could lead to the elimination of over half the 4,000 credit management jobs in the sector, the IBOA wants reassurance from Minister for Finance Brian Lenihan that the plan would not lead to job cuts in participating banks.
“The IBOA is concerned at the potential impact that this development will have,” said Larry Broderick, general secretary of the IBOA. The powerful finance union has more than 20,000 members in Ireland and Britain.
In spite of the turmoil engulfing the Irish banks, the institutions covered by the State guarantee have avoided large-scale retrenchment. However, some have reduced their staff numbers by not replacing staff who retire or depart for other reasons.
Mr Broderick said that he has written to the Minister and the banks “in terms of clarifying the full extent of this proposal and the particular implications it could have for staff working in credit management in all of the banks at this point”.
He went on to say that some statements emerging in the past couple of days caused him concern that there was potential for losses arising from the plan. “We find this incredible, given that the priority for Government, trade unions and employers should be to retain jobs, not forcing people into unemployment.”
Mr Broderick said Nama would not be established “over the heads” of bank staff. “We will not accept a cosy arrangement between the Government, the boards of the banks and the NTMA [National Treasury Management Association] without us being at the negotiating table to protect our members’ interests.”
AIB and Bank of Ireland are each believed to have at least 1,000 staff engaged in their credit management operations, while some 2,000 other bank officials are said to work in that area with other institutions.
Concern about these jobs centres on fear that any centralisation of credit management operations by Nama would eliminate existing positions in participating banks.
Although Nama will be an independent, State-owned commercial entity operating under the aegis of the NTMA, there is considerable uncertainty about how the new organisation’s business will operate in practice. The IBOA also wants reassurance about the terms under which any bank staff would transfer to the Nama.
In the report that led the Government to adopt the Nama approach, economist Dr Peter Bacon said the agency’s functioning would include the management and control of the assets transferred to it and the employment or outsourcing of whatever resources were required to carry out its work.
AIB shares dropped 7 per cent to €1.12 yesterday and Bank of Ireland shares dropped 6 per cent to 84 cent. Irish Life Permanent has no developer loans, so it does not qualify for the plan. Its shares rose almost 7 per cent to €1.92.
