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AIB staff await decision on pay rises as talks continue

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AIB Chief executive David Duffy

AIB Chief executive David Duffy

AIB Chief executive David Duffy

MORE than 11,000 AIB staff will have to wait to hear if they are to get a pay rise after the bank returned to full-year profit in 2014.

Chief executive David Duffy said AIB is in talks with union leaders, but hasn't made a decision on when increases will be awarded - or whether they will be given out at all.

It's time the bank brought forward concrete proposals to address staff's pay concerns, according to Larry Broderick, head of the Irish Bank Officials' Association (IBOA). "AIB workers have made considerable sacrifices in the restructuring of AIB Group since the onset of the banking crisis... pay and grade structures are no longer appropriate for the present circumstances and most definitely not for the future," Mr Broderick said.

"The bank will need well- motivated staff to sustain the impressive recovery in its fortunes. It will be difficult to motivate employees if their contribution to the bank's success is not recognised."

Mr Duffy yesterday said the bank's positive results "speak volumes for the capability of the staff in AIB".

"In some ways, I've been very lucky as a CEO in a very complex restructuring to have that capability, and the commitment of the staff we've had," Mr Duffy said.

"I think we will see much more of that. Staff are becoming much more positive about the future as they see profitability... and I think they're highly motivated."

The bank will pay a €280m cash dividend to the State in May because of the good results.

Chairman Richard Pym said AIB executives "all believe that the €21bn that's been invested by Irish taxpayers in AIB will be recovered over time".

The National Treasury Management Agency valued the State's near-100pc stake in AIB at €11.7bn at the end of 2014.

Finance Minister Michael Noonan said the results were "encouraging" and that the Government was exploring ways of recouping the €21bn.

Irish Independent