The Bank of Ireland has informed staff in five Dublin branches that they are to close in December in the opening move of a cost-cutting plan which could involve the closure of up to 20 per cent of its outlets.
Staff in Howth, Irishtown, Cabra, Clontarf and Stoneybatter were informed on Tuesday evening that their branches were to be closed. Staff have been offered the opportunity to transfer to neighbouring branches Sutton, Westland Row, Phibsboro, Killester and Smithfield, to which business from the closing branches is to be moved. A voluntary redundancy package is also available.
The Irish Bank Officials Association (IBOA) was informed yesterday of the announcement, which it was expecting. About 60 staff are affected. The IBOA is expecting further announcements regarding closures shortly, but has not been told which branches are affected. The association has been reassured there will be no redundancies other than voluntary redundancies, and that the workload of the people in the branches taking on the business of branches being closed will not increase.
The association has been told that up to one in five of the bank's 400 branches in the State could close as part of the effort by the bank to reduce its cost base.
Such a level of closure is "unacceptable" given the huge profits being made by the bank, according to the IBOA's general secretary, Mr Ciaran Ryan. The association would be "extremely unhappy" if the feared level of closures goes ahead.
He also said staff would have to get a "cut" of any savings made by the bank as a result of the closures.
Staff who take voluntary redundancy can get lump sum payments of £20,000 and an enhanced pension scheme which would allow anyone with 25 years' service to start receiving a full pension at 50. The amount would be two-thirds of their leaving salary.
Bank of Ireland made pre-tax profits of €920 million (£724.5 million) in the 12 months to the end of March, a rise of 10 per cent on the previous year. After tax the bank reported a 22 per cent rise in profits, benefiting from a reduced charge largely due to a higher volume of business being carried out at its IFSC operation which qualifies for a special 10 per cent tax rate.
