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David Hodgkinson, Executive Chairman of AIB, at an EGM last year.

AIB confirms plan to seek 2,500 voluntary redundancies

The 99.8 per cent state-owned bank will seek the redundancies as part of plans to reduce its staff costs by €170 million per year.

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.

Read: AIB still paying millions for staff gym and golf club fees >

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25 Comments
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    Mute David Higgins
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    Mar 8th 2012, 10:34 AM

    99.8% government owned – 2,500 involuntary job losses.
    100% government owned – Croke Park Deal to protect all.

    Totally unfair.

    107
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    Mute Barry Kelly
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    Mar 8th 2012, 10:41 AM

    Have you forgotten who is in government. You don’t normally say a bad word against FG

    27
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    Mute Sean McNally
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    Mar 8th 2012, 10:43 AM

    It stinks. The unmistakeable whiff of inequality on which the Croke Park deal is based.

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    Mute Jay funk
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    Mar 8th 2012, 10:43 AM

    Voluntary redundancies (David did FG not teach you how to read) – just like the 9,000 croke park deal jobs that just went

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    Mute David Higgins
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    Mar 8th 2012, 10:49 AM

    If they don’t get them voluntarily then there will be layoffs. Meanwhile Croke Park protects from layoffs.

    35
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    Mute Neil kettles
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    Mar 8th 2012, 11:11 AM

    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!

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    Mute John Murphy
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    Mar 8th 2012, 11:29 AM

    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?

    18
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    Mute jrbmc
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    Mar 8th 2012, 11:44 AM

    Maybe if they had done away with the green fees, gym memberships,silly bonuses etc…. at least half of those jobs if not more could have been saved.

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    Mute Ballyer Rules
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    Mar 8th 2012, 10:37 AM

    What have the 2500 been doing this past 4 years. There is no lending going on.

    52
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    Mute Padraig O'Raghallaigh
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    Mar 8th 2012, 10:47 AM

    They’ve been paying tax and not clogging up the dole queues.

    89
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    Mute Dec Rowe
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    Mar 8th 2012, 12:06 PM

    But who’s paying their wages if the bank is 99.8% government owned and we are borrowing 3/4 times than we are taking in!? Who’s paying for the redundancies?

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    Mute piohmy
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    Mar 8th 2012, 11:31 AM

    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…

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    Mute Pat Mul
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    Mar 19th 2012, 9:17 PM

    The 140M saving in ESB is not all from redundancies. I think they account for less than 75m.

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    Mute Sam slade
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    Mar 8th 2012, 11:10 AM

    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?

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    Mute Alan Murphy
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    Mar 8th 2012, 11:57 AM

    Let them pull their GAA and other sponsorships to save a few jobs

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    Mute Eileen Gabbett
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    Mar 8th 2012, 1:34 PM

    This is just so awful for all the staff concerned

    12
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    Mute Ann Illing
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    Mar 8th 2012, 11:00 AM

    I believe i am right in saying that “voluntary ” redundancy means you cannot claim the dole but “compulsory” means you can.

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    Mute Donal McCarthy
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    Mar 8th 2012, 11:12 AM

    No. There is no difference with regard to voluntary or compulsory redundancy when it comes to social welfare entitlements.

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    Mute James Smith
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    Mar 8th 2012, 11:18 AM

    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”

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    Mute Donal McCarthy
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    Mar 8th 2012, 11:40 AM

    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.

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    Mute James Smith
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    Mar 8th 2012, 11:51 AM

    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.

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    Mute Denise Prendergast
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    Mar 8th 2012, 1:39 PM

    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

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    Mute Leigh Walsh
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    Mar 8th 2012, 3:11 PM

    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.

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    Mute Dermot Murphy
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    Mar 8th 2012, 8:57 PM

    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.

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    Mute Donal McCarthy
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    Mar 8th 2012, 11:48 AM

    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.

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