Up to 500 employees picketed Bank of Ireland offices in Dublin today in an attempt to force the bank to accept a Labour Court recommendation on pay, as the union warned that strike action could escalate.
The Labour Court last month made a recommendation on agreed merit based payments to Bank of Ireland Life and New Ireland Assurance staff. However, Bank of Ireland has yet to implement the recommendation, and strike notice was served on the bank last week.
Trade union Unite said this afternoon it would be willing to return to the Labour Court for binding clarification of the ruling.
"Our members had won this battle for fair treatment. Then it was taken away," regional officer Colm Quinlan said.
"They do not want to be on strike and are willing to submit to the court one last time to make the position unequivocal. We hope the Bank of Ireland management are willing to do likewise and accept the final answer."
The bank earlier said it would consider further input, but said any decision would have to be taken in light of the current economic climate. A spokeswoman for the bank said its priority was stabilising the business and managing costs.
Staff began their pickets on the Bank of Ireland head office in Baggot Street and at the offices of New Ireland Assurance on Dawson Street at 8am. The action finished finished at about 5pm.
The union says the group of staff involved, most of whom are on salaries of less than €30,000, have taken a decrease in salary of 12 per cent this year due to the non-payment of company-related performance payments.
“The bank is suggesting it is compliant with the ruling. We are adamant it is not," said Mr Quinlan.
Bank of Ireland has disputed the union's claim of salary decreases, highlighting the deflationary period the economy is currently experiencing. A spokeswoman yesterday said discretionary bonuses had not been paid to any staff member throughout the group this year due to the "exceptionally challenging business environment and company performance”.
Speaking on RTÉ Radio this morning, Mr Quinlan said the employees involved had a "complex pay structure", which included bonus payments of about 6 per cent each for company, bank and personal performance. While company and bank performance were both down, Mr Quinlan said personal targets had been achieved and the bonus should be paid to staff.
"We're not looking for a pay increase, we're looking to reduce a pay decrease," he said.
Speaking on the same programme, Bank of Ireland Life's managing director Brian Forrester defended the bank's position, saying it was a difficult situation with markets for both life and pensions down. He said the increments due to be paid for individual performance were also linked to company performance, and he did not believe it was appropriate to pay the bonuses in the current environment.
"We're satisfied that the current pay rates are an appropriate application of the Labour Court recommendation," he said. "If we have to increase salary levels, I think the consequence of that could easily be pressure in terms of jobs."
The financial institution has paid increases to most staff due under the national wage agreement. However, the group involved in the picket is covered under a separate agreement and has been since 2001.
The union said the bank's failure to implement the Labour Court recommendation was "completely unacceptable".
