AIB started a formal consultation with the Financial Services Union (FSU) on Wednesday on its plans to cut its workforce by up to 1,500 by 2023, according to the union.

The bank had said in December that it would move in early 2021 to reopen a redundancy programme that had stalled last year as a result of the Covid-19 crisis. It also outlined plans at the time to exit some Dublin head-office locations, merge certain urban branches and get out of small-business lending in Britain.

"The FSU firmly believe that any proposals from the bank to cut the workforce in AIB should be postponed and should only be tabled for discussion post Covid-19. The bank's decision to proceed is disappointing; however, formal consultation has now commenced," said Billy Barrett, senior industrial-relations officer with the FSU.

UK operation

“The decision to wind down most of the bank’s operation in the UK leaves many unanswered questions,” he added. “The viability of the bank’s remaining operations in the UK, the selection process for possible redundancies, and the possible application of transfer-of-undertaking protection of employment-law legislation are issues to be discussed.”