More than 200 redundancies are being planned at the Northern Bank as part of a further restructuring of the business. The bank has written to around 250 of its senior staff, inviting them to take voluntary redundancy, and giving them until today to make up their minds. Those who choose to stay on will be required to apply for a new grade within the bank. But the Northern insists that even those who are not successful, will not lose out on pay and conditions.

The Irish Bank Officials Association said it was unfair that staff who in some cases had been with the bank for more than 25 years had been given only around ten days to make up their minds. A spokesman said that the IBOA had requested a meeting with management.

"The mood among staff is one of disenchantment," he said. "They are effectively being asked to apply for the redundancy package, or else to reapply for their own jobs."

This is the latest stage in a restructuring which has been going on for more than two years. Last year, the Northern, which is part of the National Australia Group, paid off nearly 100 managers and assistant managers. A spokesman said that the latest wave of voluntary redundancies would not affect the size of the workforce, which would remain at around 2,400. "While this process allows some staff to leave," he said, "it is entirely at the Bank's discretion, ensuring that the necessary experience is retained within the branch network. There is no question of any compulsory redundancies."

The Northern has denied suggestions that the scheme is a way of replacing high earners with lower-salaried employees. And it says that the salary, terms and conditions of people who do not want to leave will be protected.

In a statement, the Bank said that the restructuring was designed to respond to the needs of customers, and to developments within the financial services sector.

"The non-managerial branch reorganisation programmes," the statement said, "involve the introduction of four new grades to allow accurate matching of staff skills to customer and business needs."

It said that the Northern, which last year announced record pre-tax profits of £83 million, had invested in many different initiatives in recent years, and that this one was no different. "The driving force behind, for example, the introduction of 24-hour telephone banking, and the creation of a team of more than 100 personal bankers demonstrates Northern's desire to give its customers a better service," the statement said.

Last week, the Bank announced that it has appointed the former managing director of Northern Ireland Railways and the Belfast Telegraph, Mr Don Price, as chief executive of the Northern Bank and the National Irish Bank. Mr Price joined the Northern in April. He replaces Mr Grahame Savage, who is being made managing director of National Australia Group Europe, with responsibility for the group's entire European business.