Staff at ACCBank have lifted its ban on co-operation with the implementation of a merger between the State-owned bank and TSB. The ban was lifted yesterday as a "gesture of goodwill", ending a prolonged stand off between ACCBank staff and management.

In a letter sent to the Minister for Finance, Mr McCreevy, and senior management at ACCBank and members of the non-statutory board of the proposed merged entity, NewBank, ACC staff warned that while the ban has been lifted they are deeply concerned at the low level of trust that exists between workers and management.

Staff representatives stressed the need for management to focus on rebuilding staff confidence, morale and trust. "As ever, the unions and staff within ACCBank will play their part. However, the main initiatives must come from management," the letter continues.

ACC staff further warned that a key factor in completing the proposed merger is recognition and the harnessing of the skills of the staff in both banks equally. Comments made by the recently appointed chairman of NEWBank, Mr Matt Barrett, at its recent board meeting were a determining factor in the lifting of the ban, according to the letter. "We have drawn comfort from his stated recognition of the importance of human capital within the financial services industry."

ACC and TSB Bank are due to merge and float on the Dublin and London stock markets next May. The dispute arose following a decision to adopt TSB's computer system for both banks.

The majority of ACC's 500 staff are now members of SIPTU. Around 40 are members of the ATGWU, which until recently was the biggest union at the bank.