Business Irish

Friday 23 March 2018

'Abused' AIB frontline staff miss out on bonuses

The vast majority of Allied Irish Banks staff will not share in the controversial €40m of bonuses, union chiefs have claimed.

The Irish Bank Officials Association said its frontline members faced abuse from angry customers over the pay-out, yet they were not benefiting.

Larry Broderick, IBOA general secretary, said: "An impression has been created in the minds of many members of the general public that ordinary bank officials in AIB have shared in a massive bonus bonanza - and once again branch staff throughout Ireland are bearing the brunt of further unjustified abuse and demeaning comments from various quarters.

"The vast majority of staff in AIB have not benefited from any such payments."

Finance Minister Brian Lenihan is to introduce a 90pc tax on bonuses to senior bankers but the measure will not apply to the €40m of bonuses for AIB executives which date back to 2008.

Mr Broderick said IBOA members in AIB aware suffering from the "distorted" remuneration policies in the bank of the last decade, which he said placed emphasis on performance related wages over basic pay.

"These policies were introduced by the Bank's senior management - against the wishes of IBOA - on the basis of encouraging staff to meet short-term targets," he said.

The opposition branded the sudden announcement of the 90pc levy on bonuses an attempt to appease vulnerable people hit hardest by the Budget 2011 welfare cuts, passed by the Dail yesterday.

Mr Lenihan said the legislation brought in on foot of the bank guarantee already prohibits the payment of any performance bonuses to senior bank executives.

Press Association

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