Labour Court recommends AIB pension, pay and hours changes

The Labour Court recommended changes to pensions, pay reviews and working hours at Allied Irish Bank as part of its restructuring programme. The recommendation was signed on 1 July 2013. The Irish Bank Officials' Association sought to defer pension changes, challenged the Bank's refusal to honour contractual pay awards and opposed longer hours. Allied Irish Bank cited the risks to its defined-benefit pension schemes, its loss-making position and a government requirement to deliver payroll savings of 6% to 10%. The Court said the changes were crucial to the business's future viability and protecting employment. It recommended closing the defined-benefit schemes to future accrual from 31 December 2013, with future pension accrual through a new defined-contribution scheme. For two years from 1 January 2014, the Bank should pay employer contributions without requiring matching contributions from staff; the standard employer contribution and employee matching structure would follow. The Court also recommended annual pay reviews from January 2014 and longer working hours, including 36-hour weeks from 1 October 2013 and 37-hour attendance hours from 1 April 2014 for those below those thresholds. If an agreement on the recommendation's terms were reached, IBOA members in the Republic of Ireland below manager grade should receive a one-off payment equal to 4% of salary.