Bank workers look set to seek significant hikes in pay, off the back of the bumper profits reported recently by their employers.
The Financial Services Union (FSU) has warned that future pay talks will be conducted in the context of the strong performance by the country’s main banks.
Last week, Bank of Ireland and AIB both reported first half profits of €1.1bn each, while PTSB made €75m in the same timeframe.
“Banks in the Republic of Ireland are making enormous profits,” said John O’Connell, General Secretary of the FSU.
“It is time our members who deliver a professional service on a daily basis are paid properly for their work.”
“It is payback time for our members who in the last few years have seen their pay fall behind rising costs.”
The union said it is set to begin pay talks with the main retail banks in the coming months.
“In those negotiations we will be insisting on just reward and significant pay increases for our members,” said Mr O’Connell.
“Banks are paying substantial amounts to shareholders and rewarding their senior management with significant share payments.”
“The culture of rewarding senior management and shareholders first needs to change. There is no excuse for not significantly increasing the pay rate for entry level staff and ensuring all staff have a sense that their contribution is valued by their employer.”
In May of 2022, AIB agreed a 10% pay increase over three years, but later that year and last year additional cost of living measures were also secured by staff.
In November of last year, Bank of Ireland agreed to pay staff 4% more this year, following a 2022 pay agreement of 7.5% over two years.
The bank is also reintroducing staff bonuses following the easing of pay restrictions.
While in April of this year, PTSB, the FSU and Mandate reached a one year agreement on pay increases of between 1.95% and 5% for staff, backdated to January.
“The financial services sector is a vibrant area of growth with many opportunities for highly skilled professionals,” said Mr O’Connell.
“In an ever-changing sector Banks will have to pay more to retain their highly skilled staff or risk losing them to employers who are offering higher salaries and better career prospects.”