Royal Bank of Scotland has moved to reassure the Irish Bank Officials Association about prospects for Ulster Bank's employees if its bid for NatWest is accepted.
Representatives from the Scottish bank met IBOA executives last week and are expected to report shortly on the progress made at that meeting to Royal Bank's board of directors.
An IBOA spokesman said the meeting was very positive. "Royal Bank seemed to be in a position to meet our needs," he said.
The IBOA represents 3,500 of Ulster Bank's 4,500 staff and has sought meetings with potential bidders for the bank.
Royal Bank of Scotland has said that it will retain Ulster if its bid is successful while rival bidder, Bank of Scotland, has said it will dispose of Ulster.
Both bids have been rejected by NatWest.
Royal Bank of Scotland is understood to have contacted the IBOA about arranging a meeting two weeks ago and is so far the only potential bidder for the bank to have made contact with the trade union.
NatWest's chairman and chief executive, Sir David Rowland, said yesterday that both bids were inadequate.
"We have a highly credible, cogent strategy for delivering increased shareholder value.
"By contrast both offers are inadequate in terms of present value and require shareholders to accept a substantial degree of risk in their investment going forward," Sir Rowland said.
Analysts believe, however, that Royal Bank may shortly raise its £26.5 billion sterling (€42 billion) bid for NatWest and may be able to gain control of the British bank.
Meanwhile, NatWest has begun the process of selling off several of its subsidiaries, including Ulster Bank, in an effort to raise funds to fend off the hostile bids.
The Irish bank has been put on the market with Irish and British banks understood to have made indicative offers.
These include Irish Life & Permanent which has joined with Bank of Ireland to make a joint bid for Ulster Bank and AIB.
The IBOA has been concerned about the future ownership of Ulster Bank since the hostile bids were lodged. Ulster Bank is a major contributor to NatWest.
Last year, the average profit per employee at NatWest was £27,000, while at Ulster Bank this contribution was £35,000.
The bank's cost to income ratio is also in line with the industry and is slightly lower than Royal Bank's which may augur well for its 4,500 workforce if it is sold to the Scottish bank.
