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€160,000 payout for staff as bank cuts 360 jobs


Eamon Gilmore. Photo: Steve Humphreys

Eamon Gilmore. Photo: Steve Humphreys

Eamon Gilmore. Photo: Steve Humphreys

WORKERS at Permanent TSB who take the redundancy deal will be in line for average payouts of €160,000 each, it emerged yesterday.

The bank is seeking to reduce its headcount by 280, but it wants another 100 people to take up different positions across the bank.

Some 360 positions will be eliminated, but a spokesman insisted yesterday it expected fewer than 280 workers to lose their jobs.

The voluntary redundancy offer works out as seven-and-a-quarter weeks' pay for every year of service, with two weeks of this being made up of statutory redundancy.

However, the deal would be capped at 2.75 times salary. This means someone on €30,000 would get €82,500.

This offer is slightly higher than other redundancy deals offered by other banks laying off staff up to now, which tend to be seven weeks' pay for every year of service.

Loss-making Permanent has set aside €45m to pay for the layoffs. The job cuts amount to about a fifth of the company's staff.

The company is seeking the redundancies on a voluntary basis at the head office in Dublin and across the lender's 92 branches.

Permanent TSB said no branches would close as a direct result of this programme.

Yesterday, Unite, which represents most of the workers at the bank, hit out at what it said was mismanagement at the bank by senior management who had walked away with huge payoffs. And it disputed the bank's claim that just 280 people would lose their jobs.


Unite's Walter Cullen said: "There are 360 people being forced to pay for the reckless mismanagement of the bank in recent years."

Permanent TSB would not comment on Mr Cullen's claims about mismanagement.

Union officials are due to sit down with bank bosses next Wednesday to discuss the layoffs.

Dave Guinane, chief executive of the lender, said that the bank would seek the redundancies as part of a plan to "secure the future" of the company.

"We have set out a roadmap for the recovery of the bank, and while that impacts on both customers and staff, it is key to the ultimate recovery and success of the bank," he said.

Irish Independent