Belfast Telegraph

Thursday 17 April 2014

Allied Irish set to reveal redundancy package

Allied Irish Banks, which owns First Trust, looks set to pay three weeks' wages for every year of service when the bank unveils its long-delayed redundancy plans in the Republic.

Such a deal would see employees get slightly less than the three-and-a-half weeks offered by Ulster Bank when it unveiled a redundancy plan for 1,000 workers last year, and less than the four weeks offered to 750 Bank of Ireland staff last autumn.

All figures exclude two weeks' statutory pay which staff are also due.

A Department of Finance spokesman said any financing package must be "fair to both the employees in the banks and the taxpayer".

Banks have typically paid about six weeks' salary plus two weeks' statutory pay per year of service, but that has fallen as the crisis has worsened. A package offered by Anglo Irish Bank last year was capped at two weeks' pay per year of service, excluding statutory pay.

AIB announced the plans last April for a "reasonably generous" severance package when it said more than 2,000 workers would lose their jobs.