Inside the world of business

Bank sees staff numbers fall 50%

THE 350 jobs losses announced yesterday mean that by the end of next year, staff numbers at Anglo have more than halved from the 1,800 it employed before the crash in September 2008. However, the Irish operation – which is losing up to 130 people – will still employ more people than before the merger with the rump of Irish Nationwide, a move that involved 217 Irish Nationwide staff transferring to the merged business.

The bank hinted yesterday at the increasing difficulty in securing the necessary number of job cuts, given that more than 700 people have already left in the past three years. While the current scheme is voluntary, the bank said it might be necessary to consider compulsory job losses if there was insufficient take-up.

That pointer to an increasingly tough environment was wasted on the Irish Bank Officials Association, which represents most of the Irish Nationwide transferees and a number of the Anglo staff. IBOA general secretary Larry Broderick yesterday urged the bank to offer the “industry norm” in terms of a redundancy package, citing this as six weeks for each year of service, on top of statutory payments, up to a maximum of 130 weeks.

What industry norm? Anglo’s position has obviously not improved on the early part of last year when its most recent redundancy programme paid four weeks for each year of service up to a maximum of 52 weeks and its owner, the State, is subject to an international bailout.

Even as a growing number of its members feel the harsh reality of the current crisis, the IBOA is clearly still living in the golden years of social partnership.

A lot to thank Kerry for as it posts good results

WHILE KERRY Group’s consumer food division tends to get lost in the narrative of the company’s emergence as an ingredients and flavours superpower, it still represents a significant chunk of revenue – 32 per cent – and is one of the leading players in the British consumer market.

Speak to any analyst in the food industry and it soon becomes clear that margins are everything in this business, particularly since the onset of major commodity volatility over the last few years, following a period of relative calm.

Kerry’s ability to manage this has become one of its key assets, as proven in yesterday’s results.

The numbers also provide a reminder that the food industry is one of the few bright spots in a still very dark economic climate.

Even though most of Kerry’s 26,000-strong workforce are employed outside Ireland, innovative, outward-focused corporates are what Ireland Inc needs.

In light of the reputational damage done to Ireland by its banks, Ireland should be grateful to have indigenous companies such as Kerry Group flying the corporate flag.