National Irish Bank has been served with strike notice for Monday by the Irish Bank Officials' Association. All 61 branches may be affected by the action.
The decision follows the rejection of new performance-related pay scales which, the IBOA claims, would leave most junior bank officials on pay scales of £11,560 to £21,178 a year. Senior officials can earn up to £33,534.
The association threatened industrial action in August after a first performance-related pay package was presented. Talks began yesterday to seek a settlement.
Mr Nick Garbutt, an NIB spokesman, was optimistic that a strike could be averted through "constructive engagement" at the talks. However, Mr Larry Broderick, the IBOA deputy general secretary, said there would be no deferment of Monday's strike deadline unless the bank made a much improved offer.
Central to the union's strategy is a new career structure which would allow junior bank officials to progress to the top grades. The bank, however, wants to see performance-related pay replace seniority as the key to salary structures.
The junior bank official (JBO) grade was introduced by all the main banks in the early 1990s to reduce costs. The IBOA has negotiated agreements with the other main banks on career progression for JBOs but has failed to do so in four years of talks with NIB. About 300 of the bank's staff of more than 500 are JBOs.
Under the latest offer NIB has offered to restructure grades, with a starting salary of £11,560, rising to £18,250, for JBOs on Grade 1. Those who progress to Grade 2 would receive between £13,554 and £21,178.
According to the IBOA very few members would progress to Grade 3, which pays between £17,751 and £27,700, and virtually none to Grade 4. This scale runs from £21,462 to £33,534. Mr Garbutt disputes this and says performance-related pay would enhance the chances of JBOs getting higher earnings.
Mr Broderick said the large vote rejecting the latest offer, 396 to 121, "reflects a lot of discontent amongst staff".
He said that, besides the pay issue, IBOA members were alienated by attempts by senior NIB management to blame junior officials for some of the bank's problems at the Public Accounts Committee hearings.
Meanwhile, the IBOA is seeking an urgent meeting with the new chief executive of NatWest, Mr Ron Sandler, over the proposed disposal of Ulster Bank. It also wants to meet any potential purchasers to assess "their strategic vision for the bank".
The IBOA opposes breaking up Ulster Bank and will seek recognition for the contribution made by staff as part of any takeover deal. Mr Broderick said the greatest concern was that the bank might be sold off for a grossly inflated figure "which the new owners would recoup through major restructuring, of which our members would bear the brunt".
He said terms of employment for the 4,500 staff would have to be protected as part of any sale, and the IBOA was retaining legal and financial advisers on the takeover process. If necessary, the IBOA was willing to mount a legal challenge at national or EU level to any terms it felt breached employment or competition law.