Bank of Ireland staff appear to have reached agreement with management on redundancy terms for over 2,000 staff due to leave the bank under the latest restructuring.
The deal was brokered by the chief executive of the Labour Relations Commission, Kieran Mulvey, and will see job reductions brought about through voluntary severance, early retirement and outsourcing - and not through compulsory redundancies.
Under the proposals, staff targeted in the restructuring will receive eight weeks' pay per year of service including their statutory redundancy entitlement.
There is also an early retirement scheme allowing eligible staff to retire on full pension eight years ahead of their normal retirement date.
The Irish Bank Officials' Association (IBOA) said the voluntary redundancies and arrangements around outsourcing that will take place over the next three years "are on terms agreeable".
IBOA general secretary Mr Larry Broderick said Mr Mulvey’s recommendation "provides clear and absolute guarantees for staff, protecting their future terms and conditions of employment".
Mr Broderick also praised Mr Mulvey’s recommendation that the bank’s profit share for staff be doubled from the 3 per cent awarded this year to 6 per cent.
He said: "IBOA has consistently argued that highly profitable businesses, like banks, must be prepared to give their employees a reasonable share of that profit in recognition of increased productivity and profitability. In this regard Mr Mulvey’s recommendation is significant and welcome."
The IBOA also welcomed Mr Mulvey’s recommendation providing for a 35-hour week in the bank, describing it as an important breakthrough.
Bank of Ireland said the recommendations represented "a fair and balanced outcome" and would enable the Bank to move ahead with the implementation of the restructuring programme.
Bank of Ireland announced a restructuring plan in March that sought 2,100 redundancies in an effort to cut €120 million a year for its cost base.
