A local bargaining clause should be included in the forthcoming review of the pay terms of Towards 2016, the general secretary of the Irish Bank Officials' Association (IBOA), Larry Broderick, said yesterday.

He said this would allow trade unions in profitable sectors to negotiate higher pay increases.

"At a time when members of trade unions are generally frustrated that wage increases are failing to keep pace with inflation, trade unions must be given the flexibility to negotiate separately with employers at local level, particularly in profitable companies like the banks," said Mr Broderick.

Mr Broderick made his call as IBOA members in National Irish Bank (NIB) accepted recent recommendations from the Labour Relations Commission which secured a 35-hour week with effect from October 1st, 2007, and an increase of 2 per cent to be applied on February 1st, 2008, in excess of the national wage agreement.

In addition, staff are also to receive bonus payments and commitments around staffing.

"This development strengthens IBOA's view that a local bargaining clause might be a priority for the trade union movement at the forthcoming discussions between Ictu, Government and employers when they review the monetary terms of Towards 2016 later this year," said Mr Broderick.

He said the deal worked out in June, which followed nine months of negotiations in relation to change within that bank arising from its takeover by Danske Bank, was a good one for the staff, the bank and its customers.

"It recognises the significant amount of change which IBOA members in NIB have experienced over the last 12 months, and this recommendation is a significant breakthrough in terms of staff pay and terms and conditions," he said.