It was a difficult year for everyone at Ulster Bank in 2000. Staff and management had to adjust to doing business the Royal Bank of Scotland way and this hasn't been easy. A radical restructuring plan caused great upset among the bank's 4,400 staff, industrial action was threatened and morale across the group took a battering. There are signs that relations have improved and that, with the continuing involvement of independent tribunals, both sides will be able to move forward and secure a successful future for the organisation.
There is a view that chief executive Mr Martin Wilson and his team have been too anxious to impress their new owners at the expense of good staff relations. In the months ahead management will have to work hard to rebuild morale among its workforce if strong growth in profitability is to be sustained. Royal Bank of Scotland will be pleased with the bank's contribution, and its stronger-than-expected results have been welcomed by the stock market as proof that it is meeting its targets in terms of reaping the benefits from the merger of its operations with NatWest.
Mr Wilson says its new parent is happy to let the Irish management team get on with running the Irish operations. As long as it continues to perform, it will support it with further investment. A key aspect, from Mr Wilson's standpoint, will be to introduce a broader performance-related pay structure, which is at the heart of the ongoing discussions with the Irish Bank Officials' Association (IBOA).
He insists that, although Royal Bank intends to cut 18,000 jobs over a three-year period, Ulster Bank will in fact increase its staff numbers. A voluntary severance package is being offered to certain staff, with the IBOA estimating that up to 500 staff could leave the bank either through this route or otherwise.
Mr Wilson says it will be recruiting another 500 employees and it seems likely that they will be brought in under the new structure. There is a lot of work still to be done but at least the threat of industrial action has been removed for now and discussions are ongoing. A successful outcome is crucial.
