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THE THREAT OF strike action by lower-paid workers at the Irish Banking Resolution Corporation looks to have been avoided after a deal was struck on redundancy payments by the Labour Relations Commission.
It is understood that the the deal will see payments of €18,000 to staff that had been with the company for 10 years or more.
Staff with between two and ten years of service will receive €15,000, while those with less than 2 years service are in line for a payment of €2,000.
The deal applies to lower paid workers earning less than €120,000 per year in the IBRC, which was formed by a merger of Anglo Irish Bank and Irish Nationwide Building Society.
The average wage of the workers in question is understood to be around €40,000 to €45,000 per year.
The IBOA had threatened industrial action by staff at IBRC as recently as last month as negotiations between the Department of Finance and the Labour Relations Commission stagnated.
The recommendation on severance levels will be issued by the LRC chief Kieran Mulvey today, and will then be voted on by the workers affected. The IBRC committee within the IBOA will give a recommendation on whether to accept the severance or not.
At this stage it is thought that the workers will be urged to accept the plan.
A source close to the process said: “A lot of the members would regard this as a reasonable attempt to bridge the gap between what has been offered to them in the form of statuatory redundancy and what they had previously agreed only 12 months before liquidation.”
A statement from the special liquidators of IBRC confirmed that an agreement had been reached which will see “a sum of money set aside to facilitate termination payments to certain IBRC employees”.
The IBRC was liquidated in a shock move last February as part of the government’s restructuring of the promissory note deal.
As a result, the redundancy terms of many of the employees of the IBRC were affected.
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It’s hard to stomach anyone from Anglo getting a penny but in fairness these workers were not responsible for what happened.
The gravy train keeps on rolling
So what are the higher paid workers getting?
Another change of rules for a defunct business entity. Absolutely astounding really.
Enola
I’m sure you would prefer then that the State does not make up the shortfall in the Waterford Crystal workers defined benefit pensions!
Be careful what you ask for or you might be accused of being silly.
That’s exactly what I was thinking. If 120k is lower paid I’ll take it any day.
Richard – are you actually so stupid as to compare the hard working men and women of Waterford Crystal – who have contributed millions to the exchequer in taxes and attracted thousands of visitors to Ireland – to a bunch of bankers who have bankrupted this country? Really?
Ireland’s great craic
Lower paid staff should get their pay out from the higher echelons in IRBC who are responsible for bringing this country to its knees. Tax payers have paid enough for IRBC there should be no more money pumped into it. Enough is Enough!!!!
Surely you should only get a redundancy payout if the company is solvent? The staff in IBRC are lucky to be getting any payout at all.
Add it to the account. It will fade into insignificance when the shortfall of that special liquidation night is announced.
…the Irish are not a serious people
If its the employee’s first redundancey then they will get the full amount tax free. Yrudt me I know from expeirence
I love the way these things are reported. 18,000? Not after the government take their cut, it will be less than half that. Accurate reporting please.
Redundancy payments under 20k afaik are not taxed if it’s a first time redundancy.
I love the way people comment whilst being uninformed of the facts.
Burnnnnnn!!!!!
Michael, you are great at making a tulip out of your self here. Stop spoofing please…
Michael – have a read of the below and you will be better informed.
We live in a crazy country.
We the Taxpayers are now paying the former staff of Anglo compensation!
For what?
Destroying Ireland Inc!
Pure greed!
Hang your heads in shame!
It’s legalised robbery of the highest order!
What a load of bull…… It all comes down to big pay packets for EX bank workers…..why should they be treated better than anyone else… 2 weeks for every year is what they should be getting like any normal worker would get and any outstanding money should be put to good use and not wasted…
have your say