Ulster Bank has announced the first redundancy programmes for staff as part of its phased withdrawal from the Irish market following a period of consultation with unions that will continue in the coming weeks.
It is expected that c. 600 employees with leave the NatWest-owned lender via the redundancy programmes from next March, although other staff members will transfer to other banks as part of transactions with AIB, Bank of Ireland and Permanent TSB.
Around 450 staff working in 63 branches who will not transfer to PTSB and a small number of employees working in Ulster Bank's personal banking division will have the option to apply for voluntary redundancy or enter a period of redeployment where they can search for another role as part of the 'at risk' redundancy programme.
Some 350 workers in the services, functions and personal banking divisions, where Ulster Bank anticipates work will cease or significantly diminish next year, can apply for the business-led voluntary redundancy programme.
Those within the scope of the programme will be invited to apply and, if accepted, will be provided with a leaving date aligned to business leads, starting from the first quarter of 2023. The bank currently employs some 2,400 people.
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Ulster Bank said that further redundancy programmes would be opened in 2023 and beyond, and staff members who wish to leave earlier than planned will be facilitated where possible.
"Today is a hugely significant moment for our colleagues as we progress our phased withdrawal. Our colleagues continue to be dedicated to our customers and each other as they work to support customers through all elements of the phased withdrawal, and I remain very thankful for this," said Jane Howard, CEO of Ulster Bank.
"The programmes announced today will offer some clarity for those in scope, and for those not in scope today we expect that further redundancy programmes will be opened in 2023 and beyond, meaning that colleagues who are not in scope today are likely to be included in future programmes, with exit dates expected to be later in 2023 and 2024.
“While we have not yet announced a precise date for our 63 branch closures, we expect to be in a position to update further on this in the New Year.”
The redundancy package agreed with the Financial Services Union last year entitled employees to the greater of five weeks pay per year of service, inclusive of statutory redundancy entitlements, or four weeks plus statutory.
"We have highlighted to the bank that the implementation of the redundancy programme is contingent on the progress of the account closure and opening processes which to date is not sufficiently advanced," said John O'Connell, general secretary of FSU
"There needs to be some flexibility on the timelines announced to ensure that the exit happens in an orderly manner. We will continue to work with the bank to get the best outcome possible for our members."
Ulster Bank began freezing customer accounts last Friday and confirmed closure dates in the first two weeks of January for 25 branches that will reopen under the management of PTSB next year.
(Pic: Artur Widak/NurPhoto via Getty Images)
