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Staff in line for average pay-offs of €34,000 each as Nama to slash jobs

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NAMA

NAMA

NAMA

Staff at Nama will be in line for redundancy payments of around €34,000 each as the agency slashes job numbers by two-thirds over the next two years.

The head of Nama, Brendan McDonagh, briefed staff on Friday of plans to cut employee numbers from 370 to 290 by the end of this year, and to 125 at the end of 2016. It is understood that the cuts will be done selectively, with Nama seeking to hold on to some key staff as long as possible.

A spokesman for the agency declined to say if the job cuts will be voluntary, but the scale of the of the reduction in staff means some compulsory redundancies are likely.

Nama was set up in 2009 to run for a fixed 10-year period.

Staff working at the agency are employed by the National Treasury Management Agency (NTMA) on fixed term contracts and seconded to Nama.

The Irish Independent understands that redundancy packages will include three weeks' pay per year of service, plus two weeks' statutory redundancy per year, although this is capped at €600 a week.

Average pay at Nama is just over €100,000 a year - or €1,900 a week. That means a total redundancy payment of €34,000 for an employee earning the average salary who has been with the agency for five years.

The decision to slash staff numbers relatively early in the proposed 10-year life of Nama follows last summer's decision to accelerate the sell-off of Nama assets in order to have repaid 80pc of its original €32bn of senior debt by the end of 2016.

The pick-up in the pace of sales means Nama staff will have fewer assets and fewer debtors to manage.

The other big factor behind the redundancies is the successful liquidation of IBRC, the former Anglo Irish Bank and Irish Nationwide Building Society.

In 2013 Nama considered increasing its staff numbers by around 220 in order to cope with the potential failure of the IBRC liquidation.

That was because any IBRC assets not off-loaded by special liquidators Kieran Wallace and Eamonn Richardson would have been transferred to Nama to be managed - potentially increasing Nama's total size by 50pc. However, following the liquidation no assets will now transfer to Nama.

Irish Independent