IT dispute at Bank of Ireland edges to resolution

The continuing dispute between Bank of Ireland and workers in its information technology (IT) division moved closer to resolution yesterday after both sides warmed to recommendations from independent mediator Mr Kieran Mulvey.

The Irish Bank Officials' Association (IBOA) said the recommendations represented "substantial progress" in the wrangle, which centres on Bank of Ireland's decision to outsource its IT operations to Hewlett-Packard.

The IBOA was concerned that the move would threaten job security for its members, and was also seeking compensation for the change. The union has told its members that the package drawn up by Mr Mulvey is the best achievable under the current process.

IBOA members will be asked to choose between the proposed measures and an all-out industrial action that would occur in January.

Under the recommendations, each Bank of Ireland employee who transfers to HP will receive a one-off payment of at least €5,500 and will be guaranteed job security for at least two years.

Staff had previously been offered a minimum payment of €3,500.

The IBOA had sought job security for the seven-year span of the HP contract, but its concerns in this regard are likely to be allayed by a proposal for generous redundancy payments in the event of subsequent redundancy.

Staff who face compulsory job loss in the third year of their new position at HP would furthermore be offered redeployment within Bank of Ireland as an alternative.

This redeployment option will extend into year four and five for former bank workers who moved to Perot Systems under a previous IT contract.

Mr Mulvey has also advised that existing pension rights should be preserved and has said that an actuarial review of retirement provision should be undertaken. Benefits such as free banking would also be guaranteed under the package.

As an initial measure, a voluntary severance programme will be open to 10 per cent of affected staff.

A spokesman for Bank of Ireland said the company was optimistic that the disagreement, which led to a one-day industrial action within the IT division in the Dublin suburb of Cabinteely at the start of this month, could now be resolved.

About 220 of the 300 Cabinteely staff due to move to HP are IBOA members.

In a statement, Bank of Ireland acknowledged the considerable effort invested by Mr Mulvey in the matter.

Mr Mulvey, who is chief executive of the Labour Relations Commission and is known to be well-respected on both sides of the dispute, said the IBOA and the bank should engage in "full consultation and negotiations" if further outsourcing initiatives are mooted in the future.

He said it was positive that HP and the IBOA met about employment terms and conditions.

"This development is to be welcomed and should form the basis for future relationships."

The IBOA will ask its members to consider all of Mr Mulvey's proposals on the HP transfer as one package.

It expects to hold a simultaneous ballot on August 29th, at which members will be invited to vote on both Mr Mulvey's proposals and full strike action.

The union will hold an information meeting in Cabinteely tomorrow evening, with subsequent meetings to be held in Belfast and London, where IT staff employed by Bank of Ireland will also be affected.