Unions seek guarantees over banking jobs

Ireland's big banks have so far denied any plans for large-scale redundancies, but this hasn't stopped the financial unions from raising concerns over job security. The institutions covered by the government guarantee have a hectic few weeks ahead, as they finalise business plans for the Financial Regulator and schedule meetings with unions to discuss the fate of their staff.

Bank of Ireland and Allied Irish Bank have denied any plans for redundancy and also tell us that accusations of hiring freezes are unfounded, as they continue to recruit strategically, even if it's at a slower pace than in previous years.

However, one large financial services recruiter tells us that they've received no mandates from domestic banks for the last three months. What's more, the Irish Bank Officials Association (IBOA) says that around 1,000 jobs have been lost in the banking sector to date, as agency and temporary workers have been let go in large numbers.

Other cracks are beginning to show. EBS Building Society, which has been running a voluntary redundancy programme since February, has since announced plans to lay off at least 141 employees by 2011. Bank of Ireland, meanwhile, revealed it had saved 3% on staff costs to the end of September 2008, primarily from reducing headcount.

Permanent TSB, part of Irish Life & Permanent, is also offering staff as much as €20k to take a two-year break or €35k to go on sabbatical for three years in order to cut costs. It denies this is part of wider redundancy plans.

The IBOA says that job security is a primary concern, and will be high on the agenda when it meets with the bailed-out banks later this month.

Larry Broderick, general secretary, says: "We will be looking for a commitment on job security and seeking guarantees that they will not attempt to attack salaries and terms and conditions of staff."