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ALLIED IRISH BANKS has confirmed it is to seek 2,500 voluntary redundancies as part of a plan to cut its payroll costs by €170 million a year – and that it may have to enforce job cuts if it cannot find enough staff willing to voluntarily leave.
The bank, which is 99.8 per cent owned by the Irish government, currently employs around 14,000 staff.
In a statement this morning the bank confirmed reports which initially surfaced yesterday, when Bloomberg reported that the bank would seek to shed 2,500 staff. It had previously been expected that around 2,000 jobs would go as part of the bank’s cost-cutting exercises.
The bank further warned that if it could not achieve the redundancies on a voluntary basis, it would “need to consider other options in due course”.
Chief executive David Duffy said AIB would “work hard to ensure that the reduction in staff numbers is achieved on a voluntary basis and there will be as much consultation and dialogue with staff and their representatives as is needed”.
Tánaiste Eamon Gilmore, discussing the job losses in the Dáil, said the news was “extremely upsetting” for AIB staff and that the announcement would have a “huge impact” for those who worked at the bank.
“As a result of the restructuring that has been necessitated in the banking sector, there was going to be a reduction of the numbers working in the Irish banks,” the Tánaiste added.
He added, however, that the government’s focus would be on how to create additional jobs on the banking and financial services sectors which would help the displaced workers to find alternative employments.
AIB this morning met with the executive of the Irish Bank Officials Association, the union representing its staff, to discuss the redundancy programme.
The bank said the redundancy programme formed “an important part of AIB’s return to sustainable profitability, allowing the bank to focus on its customers and support Ireland’s economic recovery”.
The bank hopes to finalise half of the redundancies over the course of this year. It did not indicate when it expected to complete the process.
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99.8% government owned – 2,500 involuntary job losses.
100% government owned – Croke Park Deal to protect all.
Totally unfair.
Have you forgotten who is in government. You don’t normally say a bad word against FG
It stinks. The unmistakeable whiff of inequality on which the Croke Park deal is based.
Voluntary redundancies (David did FG not teach you how to read) – just like the 9,000 croke park deal jobs that just went
If they don’t get them voluntarily then there will be layoffs. Meanwhile Croke Park protects from layoffs.
How can This be unfair David? Unfair is when you’re made redundant by compulsion, then told you’re getting basic statutory! The deal AIB staff are being offered to volunteer seems pretty reasonable! And from an employer that’s technically bankrupt!
Neil
The unfairness is that the government/state is bankrupt too. We’re all in the same sinking ship but who’s getting the best seats on the liferafts?
What have the 2500 been doing this past 4 years. There is no lending going on.
They’ve been paying tax and not clogging up the dole queues.
The overpaid and underworked staff at ESB are getting rid of 1000 jobs to save €140 million, amazing that 2500 jobs can only save €170 million.. The harder working and much lower paid suffer again…
banking sector collapse, but who is to blame for the subsequent redundancies? the likes of teachers and nurses of course. lol. theres mass emigration going on at the moment, could the dopes who constantly blame our public sector for everything please go as well?
Let them pull their GAA and other sponsorships to save a few jobs
This is just so awful for all the staff concerned
I believe i am right in saying that “voluntary ” redundancy means you cannot claim the dole but “compulsory” means you can.
No. There is no difference with regard to voluntary or compulsory redundancy when it comes to social welfare entitlements.
Incorrect, I believe. It can vary from case to case, but the (max) 9 week exemption is really for someone who just quits their job and chooses welfare as a lifestyle choice.
From http://www.welfare.ie/EN/OperationalGuidelines/Pages/ja_jobseekall.aspx :
“Voluntarily Left Employment
A person may be disqualified for receiving JA for up to 9 weeks from date of leaving employment if s/he has left the employment voluntarily and without just cause.
‘Good cause’ is not defined and it is for the Deciding Officer to apply a common sense meaning to the expression”
James, I’m pretty sure that the situation you outlines excludes voluntary redundancy.
If it was true that voluntary redundancy affected welfare entitlements, no-one would ever take it.
Donal, when I said ‘incorrect’ I was referring to Ann’s statement, not yours. The threading of comments on this site sometimes makes it looks like like you are referring to the previous comment, not the parent comment.
It was the banks that got us into this mess in the first place why don,t cut all the high paid bankers that are on the Top Money and all of there Top Bonus and maybe they won,t have to get rid of some of the Jobs and Also if the government own 99.8% maybe they should also take a pay cut and stop all the travel plans they have to celebrate St Patricks Day
They can’t do that. They have to get rid of all the lower paid workers who do the actual “work”.
Perhaps if we weren’t a nation that pissed on protesters and look set to vote in the austerity treaty, things might be different.
Nothing affects the Elite in Ireland.They dont know what recession is.They will still get pay rises,and expenses,bonuses,and then a huge pension to look forward to.Shameless shower of fat pricks.
Actually James – looks like you are right! And as you said, it appears to depend on each situation as it is up to the deciding officer.
have your say