Today's strike at Banking 365, the online subsidiary of the Bank of Ireland, has been deferred to allow staff to ballot on an improved compensation package for dealing with the euro changeover next week. The Irish Bank Officials' Association (IBOA) is recommending acceptance of the offer and has also hailed it as de facto union recognition at Banking 365.
This is the last in a series of settlements at banks, insurance companies and building societies that are estimated to have cost employers €20 million (£15.75 million). However, with the exception of the Central Bank, most managements have resisted efforts by unions to secure ongoing pay increases in return for handling the euro changeover.
The decision by the Central Bank last summer to concede lump sums of £1,600, plus five per cent, in return for staff handling the euro temporarily raised union expectations. But it also incurred the wrath of the Irish Business and Employers' Confederation and the Taoiseach, Mr Ahern, issued a statement making clear the Government's opposition to pay claims based on euro conversion claims.
However some form of compensation deal was inevitable in areas such as financial services, given the extra workload involved and the profitability of the sector.
Online banking subsidiaries have been a poor relation of the sector in terms of industrial relations and the IBOA sees the current deal as a major breakthrough. Under the terms of the compensation offer at Banking 365, most of the IBOA's 300 members will receive £400, plus a day's leave. The remaining 60 staff have been offered £125 and a day's leave.
The norm for all clerical and administrative banking staff has been £150 plus a day's leave, regardless of whether or not the euro conversion directly affects their work. For those who experience increased workloads there are lump sums of £600 plus around 30 per cent extra on top of existing overtime premiums.
Over the changeover period this is expected to translate into extra earnings ranging from £750 to £2,000. For most staff the package is likely to be worth around £1,500.
But the biggest potential beneficiaries are cash-in-transit staff, members of SIPTU working for security firms. These can earn up to £2,800. There is a £500 minimum payment for agreeing to handle two currencies over the changeover period, another £1,500 for agreeing to work continuously from November 1st to February 28th and £800 for staff supplying ATM machines on New Year's Day itself.
The group of workers who fared worst from the changeover were probably CI╔'s 3,200 bus drivers, who have received £120 each for undergoing training in handling the euro. That award is up for review at the Labour Relations Commission in the New Year, but given CI╔'s losses the unions could find it difficult obtaining much satisfaction.
Meanwhile the IBOA was celebrating the offer to its members at Banking 365 last night as the final act in the euro negotiations. "This outcome represents a major breakthrough for the IBOA and our members at Banking 365," the union's assistant general secretary, Mr John O'Connell, said. "For the past two years the association has been seeking union recognition.
"This euro changeover proposal is the first occasion on which the bank has actually sat down to deal with their staff's terms and conditions with the IBOA. As such it marks a major breakthrough".
A spokesman for the bank said the final package represented a reasonable compromise. While it gave some concessions to Banking 365 staff it was on a different basis to those within the main bank. He declined to comment on whether the negotiated offer represented de facto union recognition.