IBRC employees to vote on exit package worth up to €18,000
UP to 450 staff at the former Anglo Irish Bank will begin voting next week on an exit deal worth no more than €18,000 on top of statutory redundancy.
Their union has recommended they accept lump sums offered by liquidators, ranging from just €2,000 to €18,000, as well as the minimum legal severance package.
Employees who have worked longest at the bank, which was renamed the Irish Bank Resolution Corporation (IBRC), will get the biggest lump sums.
Workers with less than two years' service will get a termination payment of €2,000.
Staff with two to 10 years' service will get €15,000 and those with over 10 years will get €18,000.
The payouts are in addition to statutory redundancy, which is worth two weeks' pay per year of service, plus an extra week's pay.
The deal is open to staff made compulsorily redundant, who earn less than €120,000 a year.
It was negotiated at talks chaired by the chief executive of the Labour Relations Commission, Kieran Mulvey, and will only be paid if staff withdraw the threat of industrial action.
The workers had threatened to withdraw co-operation with the disposal of IBRC loans.
They lobbied the Government for a better package after they were offered basic statutory redundancy when the bank went into liquidation.
The staff wanted four weeks' pay per year of service, the same as a deal on offer in the public service.
The lump-sum deal falls short of this package, according to their union, the Irish Bank Officials' Association. But it said it was an "acceptable resolution".
In a statement, the liquidators from KPMG Dublin said a sum of money would be set aside "to facilitate the provision of termination payments" to employees at the bank, which is being wound down. It is understood this sum is between €4m and €5m.
The union had complained that the employees' previous redundancy terms, which had been signed off by the Department of Finance at the end of 2011, were withdrawn in an instant.
The IBOA welcomed mediator Kieran Mulvey's bid to resolve the redundancy row at the bank.
"The mediator's recommendation offers the basis for an acceptable resolution of this matter," said general secretary Larry Broderick.
"Our members in IBRC have been gratified by the support they have received from a number of members of the Oireachtas, who have helped to ensure that their campaign was not ignored – especially in light of the recent announcements from the special liquidator that around 90pc of the IBRC loan book will be sold."