Ulster Bank chief executive, Mr Martin Wilson, has defended the bank's proposals to reduce staff numbers and cut salaries saying this is necessary for the bank to become competitive.
Speaking to The Irish Times yesterday, Mr Wilson said the bank's salary structure was out of line with the financial services industry and pay cuts were crucial for the bank to achieve profit targets. "Ulster Bank's performance has not been as good as our competitors over the past five years. Our profit and loss account has shown a 10 per cent compound increase compared with 20 to 25 per cent in other Irish banks." Mr Wilson said the restructuring programme is the "right thing" for the organisation.
The majority of Ulster Bank's 4,500 staff are vehemently opposed to the bank's plans and the Irish Bank Officials' Association will begin to ballot its 3,500 members this week on possible industrial action.
The IBOA is concerned that if implemented the proposals will lead to between 200 and 500 job losses and pay cuts of as much as 30 per cent for certain employees.
The proposals aim to bring the structures in Ulster Bank in line with its new parent, Royal Bank of Scotland. Many of the changes the bank is now seeking were identified by Ulster Bank management when National Westminster Bank signalled its intention to sell the bank to fund its defence of a hostile bid from Bank of Scotland.
Mr Wilson explained that the bank is seeking to take much of the administrative functions out of its branches and establish a centralised processing division in Northern Ireland. He envisages this could employ around 270 people.
Two discreet lending centres will be maintained, one in Dublin and one in Belfast and he has stressed that no branches will be closed. The removal of administrative functions will however reduce staff numbers at branch level, possibly by as much as 20 per cent in certain cases, according to Mr Wilson.
A voluntary severance package and early retirement deal is available to staff. with some 300 already making applications to take it up. Mr Wilson said he hoped the bank would recruit new staff in the future.
