AIB job-loss talks intensify as IBOA meets management on restructure
Staff representatives led by Irish Bank Officials' Association (IBOA) general secretary Larry Broderick met AIB's executive chairman David Hodgkinson yesterday to discuss the future of its 25,000-strong workforce amid expectations of major job cuts by the end of this month.
No details, in terms of the size of future job losses or the timescale for the redundancies, were given at the meeting. A previous redundancy plan, drafted by AIB's former managing director Colm Doherty, included the axing of 3,000 jobs.
The job announcement is now expected to be included in the bank's 2010 results, due to be issued within weeks. The bank is currently without a chief executive, but Mr Hodgkinson is expected to unveil the results himself and talk to analysts.
Long term, he is hoping to recruit a permanent chief executive on behalf of the bank.
The bank, which has been effectively nationalised, has already sold off valuable assets such as its Polish bank and a 22pc stake in the US bank M&T to raise money.
It has also been trying to sell its UK business, using funds to be injected by the Government as part of its recapitalisation in the coming months to accelerate that disposal.
Bank officials working directly for these divisions are viewed as being most vulnerable to future job cuts in the near term.
AIB has already cut 1,200 jobs since 2008 and the IBOA will be trying to uphold the severance terms previously offered to its members who left the bank.
In the past, the bank has offered a package worth eight weeks' pay for every year of service -- although a new package is expected to be much less generous given that the bank is being propped up by the Irish taxpayer.
Any severance deal will have to be notified to and approved by the Finance Minister. Given the bank's fragile financial position and the level of political and public anger at the payment of bonuses at the bank last year, some sources admit staff could be offered statutory redundancy.