Wednesday 20 June 2018

Union signs off on AIB to outsource 220 tech jobs in cost cutting

Larry Broderick, general secretary, IBOA
Larry Broderick, general secretary, IBOA
Peter Flanagan

Peter Flanagan

Unions at AIB have signed off on the transfer of 220 staff from the bank to outsourcing firms, in the latest cuts by the State-owned lender.

Last month the bank announced plans to transfer the staff from the bank to outsourcing firms Infosys and Wipro.

The move affects staff working in the Application & Development Management (ADM) division within the lender.

Under the original outsourcing plan 200 of those jobs will be transferred to Wipro and Infosys, who will take over the functions for the bank.

In a statement, the IBOA banking union said its members had voted to accept proposals which will see approximately 120 and 100 employees respectively transfer to the technology service providers.

"As a result of negotiations between the union and the managements of AIB, Infosys and Wipro, the workers will enjoy enhanced protection of the terms and conditions of employment on top of the legal minima required under the Transfer of Undertakings regulations," the union said.

"In contrast to outsourcing arrangements in some other employments, a key feature of these transfers will be enhanced job security for workers involved as well as protection for the pension entitlements achieved during their current employment with AIB," said IBOA general secretary Larry Broderick.

"During the course of the negotiations with management representatives from AIB and the two service providers, the union managed to secure commitments to address the concerns of a substantial majority of the workers involved.

"The transferring workers will also be entitled to the pay increase for AIB staff proposed recently by the independent mediator, Kevin Foley, if his recommendation is accepted by IBOA members in AIB in the ballot which is currently under way.

"While the union has strategic concerns about the trend to outsource what we consider to be core operational assets in banking, these concerns have not been shared by the Government or the regulator despite our representations," explained the IBOA leader. "So, once it became clear that this development would proceed, we have attempted to secure the best possible outcome for our members - both those in scope to transfer to new employments and those who would remain in AIB's ADM area.

"These transfers are the latest in a growing trend within banking in Ireland - which is following developments in some other countries - to outsource work on various IT-based banking processes to third-party service providers.

"The emergence of these specialist service providers has become a significant feature in the landscape of the wider financial services sector in Ireland.

"So IBOA has taken steps to secure agreements with many of these new employers in order to provide continuing representation to our members on transfer.

"Our members in ADM who are due to transfer to Wipro will now join members from AIB's IT Hosting and Storage department who agreed to transfer to Wipro earlier this year," Mr Broderick added.

Last month the union agreed terms with the bank a 2pc pay rise for staff earning less than €100,000 per year.

Irish Independent

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