The Irish Bank Officials' Association (IBOA) is to seek clarification from Ulster Bank over reports it plans to use the £43 million surplus in its employee pension fund to bankroll its voluntary redundancy programme.
The clarification is being sought as workers in the bank's branches in Northern Ireland are expected to overwhelmingly support calls for strike action.
The result of the ballot of the North's 1,750 Ulster Bank workers, to be revealed today, is expected to mirror the militant stance taken by their colleagues in the Republic for industrial action if the bank attempts to introduce salary cuts or compulsory redundancies.
Two independent tribunals are reviewing the bank's proposed restructuring under its "Horizon" programme on both sides of the border. "We'll be seeking clarification on all aspects of the Ulster Bank proposals from the tribunals, particularly how it impacts on the pension scheme," said the IBOA's assistant general secretary, Mr Larry Broderick.
"If it is planned to use the pension fund surplus in this way what impact will this have on employees' pensions in, say, 10 years, when we are no longer a Celtic Tiger economy?".
It is understood the trustees of the pension fund are taking legal advice on the issue. The main concerns are that the fund could be used to provide enhanced redundancy benefits for older employees while younger staff would be expected to work for lower salaries and with reduced pension benefits.