Anglo Irish Bank is to cut up to 350 jobs from its workforce by the end of next year, it was confirmed today.
Staff at the nationalised lender were called to a meeting this morning and informed of the plan, which will see 130 redundancies in the Republic.
The bank currently employs some 1,280 staff. A spokesperson for Anglo said the job losses will be on a voluntary basis initially but added that if sufficient numbers were not achieved, it may need to implement compulsory redundancies.
The Irish Bank Officials Association' (IBOA) said negotiations on the planned job cuts will begin tomorrow.
IBOA general secretary Larry Broderick said although the union was disappointed at the job losses, it was not surprised.
"We will be seeking clarification of both the scope and rationale for the restructuring proposals," he said.
"While we acknowledge that the bank has indicated its preference that redundancies should be implemented on a voluntary basis, IBOA will urge management to strengthen that commitment so as to avoid making any staff redundant on a compulsory basis given the current employment situation in the financial services sector."
A reduction in employee numbers has been expected for some time. Anglo and Irish Nationwide Building Society – the most toxic of Irish lenders – were merged on July 1st and will be closed down over 10 years. They have been renamed as the Irish Bank Resolution Corporation (IBRC).
The heads of human resources at AIB, Anglo and Irish Life and Permanent were called to a meeting at the Department of Finance on July 28th and told to draw up proposals for redundancy pay at or below public sector rates.
The industry norm on severance pay in banking has been about six weeks per year of service, plus statutory entitlements.
However, the department told the human resources managers that voluntary redundancy terms at the Health Service Executive involved three weeks' pay per year of service plus statutory two weeks' pay.
Meanwhile, Irish Nationwide Building Society chief executive Gerry McGinn is to leave the lender next month to take over as managing director of AIB's First Trust Bank unit in Northern Ireland.
Mr McGinn's responsibilities at Irish Nationwide, which is being merged with Anglo Irish Bank, will be taken over by the company's chief financial officer John McGloughlin.
