AIB facing 100 new claims in courts over staff bonuses

AIB IS facing at least 100 new claims in the courts after staff from its capital markets division began legal action for the payment of bonuses promised to them almost two years ago.

Staff from the capital markets unit filed claims for sums ranging from €3,000 to five and six figures with both the High and Circuit Courts between Wednesday and Thursday of this week.

The final number of claims is not known. One Dublin solicitors’ firm, Whitney Moore, confirmed that it was acting for a group of AIB workers who have initiated proceedings against the bank.

The firm would not comment beyond that, but it is thought to be acting for between 70 and 80 staff.

At least one other group is taking action against the bank, and conservative estimates of the number of claims against the financial institution run to around 100.

The fresh wave of claims follows former currency trader John Foy’s success last week in getting a High Court judgment for €161,000 against the bank which had promised to pay him this sum as a bonus in early 2009.

As a result of that ruling, AIB was due to pay a total of €9.2 million to Mr Foy and 90 of his colleagues.

However, Minister for Finance Brian Lenihan intervened early this week and warned the bank that if it paid the bonuses the Government would not provide further State aid.

AIB is due to receive €9 billion from the exchequer to recapitalise its losses from the Republic’s property slump. The bank has since said that it does not intend to pay any bonuses other than that due to Mr Foy, which the judgment he obtained obliges it to pay.

Capital markets staff believe the bank is legally bound to pay them their bonuses, which have been deferred since the beginning of 2009 as they are part of a contract with their employer.

The rush of claims this week was in anticipation of the enactment of the Credit Institutions (Stabilisation) Bill, which makes State aid for all banks conditional on them not paying bonuses.

There is a possibility that the President, Mary McAleese, could refer the legislation to the Supreme Court as it raises a number of constitutional issues.

Lawyers believe that, irrespective of the legislation’s final form and the Minister’s warning, many of those seeking their bonuses could still have a case against the bank.

Meanwhile, Bank of Ireland yesterday continued to refuse to reveal how much it has paid in bonuses to some of its staff.

While AIB recently provided the Oireachtas of a detailed breakdown of €58 million worth of bonuses paid to staff for the years 2006 to 2008, its main rival would only say that it had paid bonuses to middle management, but would not reveal the sums involved because of “commercial sensitivities”.