Themain union at AIB has said it won't cooperate with plans to shift IT workers to outside companies unless a deal is reached on redundancies.
Yesterday, the bank informed around 170 information technology staff that their jobs would be outsourced to Eircom and IT services companies Wipro and Integrity.
AIB said there would be no compulsory redundancies. Staff have not been given the option to take a redundancy package.
One AIB staff member, who asked not to be named, told the Irish Independent that management informed her she would be moving to Wipro and starting a new contract in May.
Irish Bank Officials' Association (IBOA) general secretary Larry Broderick, head of the union that represents most AIB staff, said the union wanted a voluntary redundancy package.
"If there's no agreement reached we will be recommending no cooperation and, hopefully, the bank will defer it - or there will be a row," Mr Broderick told the Irish Independent.
"The decision... is disappointing, given the commitment of those staff to AIB in the past."
Negotiations between the bank and union representatives began yesterday.
Jobs Minister Richard Bruton said that the state-owned bank had to be allowed to make a profit. "It has to be able to develop and deliver its services efficiently.
"We feel for any employees who are facing uncertainty, but I think that has been the pattern of the last number of years.
"There are sectors in difficulty, but there are other sectors growing. The balance has been clearly on the positive side," he added.
But there was some good news for technology workers in the financial sector yesterday, when insurance software company Guidewire said it expected to hire 60 to 80 new staff at its Dublin offices in Blanchardstown over the next two years.
The new staff will provide consultancy support and product development resources to Guidewire's customers.
Recruitment has already begun for product managers, mobile developers and other roles. The company has leased new office space to prepare.