Bank of Ireland workers accept bonus plan deal

Staff at Bank of Ireland have accepted a settlement proposal to end a row over the level of stock to be awarded to employees under the company's gain-share scheme.

The plan was brokered by independent mediator, Kieran Mulvey and will see staff receive a cash bonus equivalent to 3 per cent of annual salary, on top of 3 per cent in shares already awarded by the bank.

In a statement the Finance union IBOA said its Bank of Ireland members had voted to accept the proposals. The union claims to have almost 7,000 members in the bank.

The dispute arose after the bank decided, on the basis of its financial results, to pay only half of a 6 per cent of salary in stock due under an agreed group transformation programme.

Bank of Ireland had argued its initial 3 per cent award of shares, at a cost of over €20 million, was "fair and equitable" and consistent with the agreement on the transformation plan.

This move was strongly opposed by unions at the company which had threatened strike action over the move.

IBOA general secretary, Larry Broderick, said the agreement will see the outstanding element of the bonus award paid as cash and re-affirms other rovisions of the original agreement.

"The overwhelming support for the settlement reflects not only a degree of satisfaction with the level of financial compensation included in it but also strong support for its endorsement of the principles of engagement based on consultation, negotiation and agreement as the way forward for the relationship between the Bank's senior management and employee representatives into the future," he said.