Bank of Ireland misses opportunity with variable pay reintroduction to properly reward staff.

FSU reward specialist will examine the finer detail of this report and will advise the union on next steps says FSU.

John O’Connell, General Secretary of the Financial Services Union (FSU) has described the payment of 4% in variable pay to the majority of ordinary bank staff as very disappointing.

Bank of Ireland have today announced pretax profits of 1.9 billion euros for the year ending 2023. As well as announcing the account results for 2023 the bank also informed staff, they would be receiving payments ranging from 2% to 5% in variable pay under a framework which allowed for increases up to 10%.

Commenting on the announcements John O’Connell, General Secretary of the Financial Services Union said:

“Today’s announcement of 1.9 billion euros in pretax profits shows beyond doubt that Bank of Ireland are back to the boom years in terms of profit margins. The FSU want to see a banking sector that is attracting employees who see a long-term future in working in the sector. For that to happen staff need to be rewarded for their professionalism and talent.

Last year Bank of Ireland announced it was planning to grant its chief executive and chief financial officer shares of up to 50 per cent of their salaries and seven of theirsenior executive team stock awards collectively receiving a total of 27,995 shares worth €240,000, regardless of their performance.

The contrast between the treatment of senior management and ordinary bank staff is shocking. On a day when the Bank announce profits of 1.9 bn euro, and 634m euro paid in dividends to shareholders, with a further 500m euro in share buybacks, they only paid out half of an agreed framework range of up to 10% to staff.

Bank of Ireland promised transparency in how they reached the decision on variable pay and it is the intention of the FSU to hold them to their word.

As agreed with the bank the FSU reward specialist will examine the finer detail of this report and will advise the Union on next steps.

Until Bank management  are seen to treat their staff, consumers, and their shareholders with equal importance, we will never see the cultural change that is required to restore trust in our main banks. Staff are struggling with childcare, ongoing inflation, and high interest rates and this was an opportunity for the bank to alleviate some of the pressure on them which they failed to do.”

ENDS