Bank of Ireland has agreed a 7.5% pay increase for staff over two years, in the most significant salary bump for workers at the bank for over a decade, following negotiations with employee representative bodies.
The pay deal, which will now be subject to a staff ballot, will see wages increase 4% in 2022 and 3.5% in 2023.
Entry-level salaries at the bank in Ireland and the UK will also rise 6%, by €1,500 to €26,500 and by £1,000 to £18,500, to keep them in line with the living wage
Staff who enhance their professional qualifications will also receive improved monetary awards, and Bank of Ireland said the deal had been made possible by the group's improved financial performance.
"Following the exceptional challenges of the last two years, we are pleased to be able to provide our colleagues with clarity on pay to the end of 2023," Matt Elliott, chief people officer at Bank of Ireland, said. "As part of the deal we’re also taking steps to increase entry-level salaries, as well as the reward for colleagues who attain additional qualifications."
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Elliott went on to criticise the ban on bonuses for bank employees brought in after the crash, saying it put Irish banks "at a serious competitive disadvantage to other employers.
"We will continue to press for the normalisation of pay for workers in Irish banks to ensure we attract and retain talent at all levels.”
If the deal is approved by staff, salary increases will be backdated to the start of the year. The Financial Services Union (FSU) has said it will recommend that staff accept the deal.
"The negotiations with Bank of Ireland have been challenging but constructive, and FSU are satisfied that we have negotiated the best deal possible for our members in the current circumstances," Maeve Brehony, senior industrial relations officer at the FSU, said.
"I would like to thank the [Workplace Relations Commission] for their assistance and recommendation. The FSU will be recommending acceptance of the terms to our members. It is now up to members to evaluate the terms and vote accordingly.
John O’Connell, general secretary of the FSU, commented: “Last November the FSU stated our desire that pay increases in the main retail Banks would have to reflect the professional and incredible work of our members over the last twelve months in difficult circumstances and take inflation into account.
"Our position in November has been vindicated by the recent readjustment by [the Irish Congress of Trade Unions] of their advice to inions to seek pay increases in the range of 2.5% and 5.5%.
"The deal negotiated with Bank of Ireland meets this criteria. Pay increases, from profitable employers play a vital part in protecting workers from the rising cost of living. That is why the FSU has been vocal in highlighting that any pay increase in the sector needed to be inflation proofed."
(Pic: Getty Images)
