Danke Bank staff accept recommended redundancy terms

Danske Bank staff who are members of the Irish Bank Officials Association have agreed to accept redundancy terms recommended by independent mediator Martin King as the Danish group prepares to close its personal and business banking operations in the Republic in the first half of 2014.

The IBOA said yesterday that about 150 permanent employees will be made redundant along with a similar number of employees on fixed-term contracts.

"IBOA is satisfied that the severance terms which they have voted to accept today are the best that could be secured in the current circumstances," said IBOA general secretary Larry Broderick.

Renewed undertaking
Mr Broderick said the IBOA would also seek a renewed undertaking from Danske Bank's parent company that it remains "fully committed to its operation in Northern Ireland, which has recently returned to profitability".

For staff under 50, Mr King recommended a lump sum of five weeks pay per year of service inclusive of statutory entitlement, subject to a maximum payment of 130 weeks pay.

A minimum payment of €12,000 will apply while a grant of €3,000 will be given for retraining.

Additional arrangements have been included for older staff.

Those aged between 50 and 55 staff may opt to take an immediate pension based on accrued benefit at the date of leaving. Those 55 and over will get an immediate, non-reduced, pension based on accrued benefit at the date of their leaving.