Spectrum December 2014

DECEMBER 2014

SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk

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www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

CURRENT ACCOUNTS

14 TTIPing the balance from citizens to corporation15 Breaking the Code of Silence

New law on whistleblowers16 Political economy Republic’s Budget fails key tests on fairness and jobs British austerity policies hurt North’s economy ICTU backs voter registration A pay rise for all18 Customer focus CAI seeks inquiry on bank fees

Going Postal20 Culture clash Carney on banks and fairness

Culture must change says IMF’s Lagarde

21 1914: bank workers on the frontline

GOING CONCERNS

22 Inside IBOA Website make-over under way Our social partners: Twitter and Facebook Vision 202024 Discount Window Making your cash go further with IBOA Group Schemes

26 IBOA events

LOOSE CHANGE

5 Banking inquiry At long last6 Back to Black BOI in profit7 Payback AIB aims to repay State bailout eventually7 Write-downs AIB writes down mortgage debt in pilot with IMHO8 Murphy’s Law

RBS can’t catch a break9 Danske profits improve9 Permanent TSB stressed10 ECB stress tests RBS passes despite faulty data10 House calls Banks cool on regulator’s mortgage proposals11 More jobs go at JPMorgan11 Bolden plans branchless bank in UK11 World class strikers in Brazil12 Life-trials of the Slick and Shameless

UK’s top director earns £31m in one year Currency traders who don’t give a forex Banker is best paid executive in New Zealand Oz: the ‘great and powerful’

IBOA –The Finance Union

General Secretary: Larry Broderick

Honorary Secretary:Tommy Kennedy

Communications Manager:

Séamas Sheils

Advertising:Anna O’DohertyLouise O’Donnell

IBOA House Stephen Street Upper, Dublin 8

29, Malone Road, Belfast. BT9 6RU.

Phone: 00353-1-4755908 and

0044-28-90200130E-mail: [email protected]: www.iboa.iewww.iboa.org.uk

Spectrum is printed on recycled paper and wrapped for

posting in oxy-degradable

poly thene at W. & G. Baird,

Antrim, Northern Ireland.

In this issue…

Cover photograph: Kym Kemp

10%discount for

IBOA members

Show your IBOA membershipcard at the pay point

CHAPTERS BOOKSTOREParnell Street Dublin 1

INSIDEINFO


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BANK NOTES

28 Bank of Ireland Milestone deal on pay and career progression29 Danske Bank Seven more branch closures

30 Ulster Bank More closures sought Negotiations on pay Engagement on restructure Lombard Ireland to transfer into Ulster Bank31 AIB Group Pay talks under way Job losses likely in AIB GB FPCs accept deal on functional cars Engagement at AIB32 IBRC Pay talks under way33 Organisation

FOREIGN EXCHANGE

34 Worldview

FIFA overlooks migrant deaths and abuse EU Commission fines four banks NZ bank workers smell a rat Bank news clips

LIFE COVER

36 Safety Feature

New ICTU guide to assist workers with breast cancer

Mental health is key concern at work

FIXED INTEREST

38 Game Time The pride of Ballyhaunis39 Cinematique The final chapter The Guarantee Inez: a challenging woman42 Prize crossword43 Picture board and Sudoku44 Game time Reasons to be cheerful46 Stephen Malone The curse of Drivetime Assault and Blattery!

More infallible than the Pope No need for pay claims: women should trust in karma

In this issue…

IBOA –The Finance Union

General Secretary: Larry Broderick

Honorary Secretary:Tommy Kennedy

Communications Manager:

Séamas Sheils

Advertising:Anna O’DohertyLouise O’Donnell

IBOA House Stephen Street Upper, Dublin 8

29, Malone Road, Belfast. BT9 6RU.

Phone: 00353-1-4755908 and

0044-28-90200130E-mail: [email protected]: www.iboa.iewww.iboa.org.uk

Spectrum is printed on recycled paper and wrapped for

posting in oxy-degradable

poly thene at W. & G. Baird,

Antrim, Northern Ireland.

Wishing all our readersthe compliments of the season

from the Officers and Staff ofIBOA The Finance Union

INSIDEINFO

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UK bank scandals do huge damageThe scandals that have

resulted in British banks having to pay out £38.5bn in fines and compensation over the past fifteen years will take a generation to fix, according to a new report from an independent think tank. The report by the think tank, New City Agenda, and the Cass Business School in London examined British banking culture that has led to scandals ranging from the attempted manipulation of foreign exchange and benchmark interest rates to the mis- selling of loan insurance. It found that an aggressive sales culture took hold over two decades, with some branch staff receiving cash bonuses, iPods or even tickets to Wimbledon for meeting sales targets. “A toxic culture which was decades in the making will take a generation to turn around,” said David Davis, chairman of New City Agenda. “At this critical juncture, Britain’s biggest banks cannot afford to let the better treatment of customers become a second-order priority,” he warned. The mis-selling of payment protection insurance (PPI) alone cost British banks at least £27bn, according to the report. PPI compensation amount totalled £11.3bn at Lloyds Banking, £5bn at Barclays, £3.3bn at RBS and £2.5bn at HSBC. New City Agenda noted that banks had received 20.8m com-plaints since the financial crisis. It recommended that the new Banking Standards Review Council should talk to branch staff to check they are not under pressure to sell and should report annually to the Treasury Select Committee at Westminster. “The need for culture change has been recognised, but it has to be transmitted all the way from the top to the bottom of these huge organisations,” said John McFall, a former chair of the Treasury Select Committee and one of New City Agenda’s directors.

The Republic’s banking inquiry is expected to get

under way this month following the long-awaited approval of its terms of reference by both Houses of the Oirechtas. At the end of November, the Oireachtas finally endorsed the terms of reference which had been previously agreed by the eleven members of the committee – based on recommendations from an ad-hoc advisory group, made up of a number of economists and senior civil servants. While the scope of the inquiry is expected to run from 1992, when European banking capital require-ments were changed, through to the end of 2013, the inquiry will have a particular focus on the events leading up to the bank guarantee in September 2008 – and on its consequences. The role of the media is also likely to figure in the investigation.

The first part of the inquiry – known as the Context Phase – is expected to begin this month. It is likely to include preliminary work involving technical briefings – with the first hearings due to start in January. Witnesses in this phase are likely to include the authors of pre-vious reports into the crisis, such as Peter Nyberg, who reported on the banking collapse in early 2011, as well as Klaus Regling and Max Watson, who reported in 2010. The hearings in the Nexus Phase are expected to begin in April and conclude in September. Contacts are believed to have already been made with some witnesses who may be compelled to attend if they live in this country, but not if they are in another jurisdiction, such as European Central Bank (ECB) officials. But the current ECB President, Mario Draghi, indicated recently that the ECB will not formally participate in the banking inquiry.

While Draghi ruled out formal particpation on the grounds that the ECB was accountable to the European Parliament – rather than any national institutions, he suggested that the ECB might be able to participate informally. “We haven’t discussed yet what sort of shape could take this informal participation,” he said. “We will think and reflect on this.” The Oireachtas inquiry aims to issue its final report by the end of November, 2015. However, with a general election possible next year, some committee members have raised concerns that the committee might not be able to complete its work before it is dissolved. The inquiry is expected to cost between €5m and €6m – with staff costs, research and legal advice, and upgrading Leinster House facilities to enable the inquiry to be televised. It has been suggested that the banks participating in the inquiry may be asked to make a financial contribution towards the costs.

The banking inquiry is due to get under way later this month, chaired by Labour TD Ciarán Lynch (above).Photograph: Dara Mac Donaill (Irish Times)

Finally a banking inquiryOireachtas agrees terms of reference

confronting past


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The improved trading perfor-mance was attributed to higher net interest income, lower guarantee scheme fees and reduced impairment charges. The improved perfor-mance extended to the bank’s retail divisions in Ireland and the UK. In Ireland, retail losses fell to €28m in the first six months of this year compared with €339m in 2013 – while in the UK, the retail business returned to profit with a surplus of €57m compared to a loss of €112m a year earlier.

In outlining the results, the bank’s Chief Executive, Richie Boucher, drew confidence from the “more favourable” macroeconomic outlook in the UK and Ireland and indicated that the rewards for staff were now on the table again following the return to profitability. Customer deposits showed an increase while total defaulted loans continued to decline – with reductions in arrears in both the owner-occupied and buy-to-let mortgage books.

pillar talk

LOOSECHANGE

Bank of Ireland repossessed a total of 621 owner-occupied or buy-to-let properties in the first half of 2014, according to

information supplied to the Oireachtas Committee on Finance and Public Expenditure and Reform recently. Bank of Ireland advised the parliamentarians that 322 judgments were enforced against owner-occupiers, compared to 299 on buy-to-let invest-ments. So these properties were either in the bank’s possession or had been sold. Up to the end of June this year, the bank had disposed of 80 of the properties it had repossessed during this period. According to the data provided by the bank, there were 85 reposses-sions in 2010; 166 in 2011; 180 in 2012 and 214 in 2013. Around 60% of these repossessed properties had been disposed of up to the end of last year.

Heritage Centre for College GreenBank of Ireland has agreed to make space available to the State at its College Green site in Dublin for use as a cultural and her-itage centre for a 10-year period to commemorate the “decade of centenaries” from 2016 onward. The Bank is to spend €10m re-furbishing the centre for use by the Department of Arts, Heritage and the Gaeltacht – as well as meeting some of its running costs.

Bank of Ireland reported its first profit since Ireland’s disastrous 2008 property and banking crash, with its results for the half of

the year showing a net profit of €343m, compared with a net loss of €463m a year earlier.

Back to blackBOI in profit for first timesince 2008

For workplace news on Bank of Ireland, see page 28

Bank of Ireland Group Chief Executive, Richie Boucher (left) and Group Chief Financial Officer, Andrew Keating, at the launch of the Bank’s interim results to the end of June 2014. (Photo: Laura Hutton/ Photocall Ireland).

Initial funding has been agreed for the new State-backed Strategic Banking Corporation of Ireland – which aims to make it easier for smaller businesses to get low-interest loans. The Strategic Banking Corpo-ration is to receive €400m from the European Investment Bank, €240m from the Irish Govern-ment, and €150m from the

Strategic Banking Corporation tolend through two pillar banks

Over 600 properties repossessed in first half of 2014

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AIB has approved €9bn in lending between January and September – an increase of 39% on 2013 figures. According to its recent interim management statement, the value of impaired loans on its books fell from €26bn to €24.3bn. The number of mortgage accounts in arrears had also fallen by 11%.

It’s paybackin about 10 years’ time!

AIB could pay back its €21bn in bailout funds

within ten years, its Chief Executive David Duffy told members of the Oireachtas recently. “It will take time but that would be our expectation,” he said. “Our simple mission in life is to return the entire value back to the taxpayer,” he told a recent meeting of the Oireachtas Committee on Finance and Public Expenditure and Reform. Revenue from dividend pay-ments could be complemented by the disposal of the State’s 99.8% equity to private investors in a series of smaller sales rather than one large deal, according to Duffy.

German State development bank, Kreditanstalt für Wiederaufbau (KfW). Loans will be available to small and medium-sized firms through Bank of Ireland and AIB from December. They are to be made avail-able on more flexible terms than are currently available from com-mercial banks.

Strategic Banking Corporation tolend through two pillar banks

AIB Chief Executive, David Duffy, arrives at Leinster House to meet the Oireachtas Committee on Finance and Public Expenditure and Reform (Photo: Sam Boal/Photocall Ireland)

Lending upImpairments down

AIB’s third quarter was “profitable and cash generative”, according to Chief Executive, David Duffy, introducing the

bank’s latest performance update recently.confirmed the bank’s half-yearly results which revealed that AIB had returned to profit for the first time since the financial crash. Its pre-tax profit of €437m (£346m) for the first six months of 2014 represented an improve-ment of €1.3bn (£1bn) in the bank’s performance, compared to the same period in 2013. The number of distressed loans on AIB’s books fell by €2.9bn (£2.3bn). The total number of residential mortgage holders with accounts in arrears also fell by 6%. Although the Group was briefly in profit in the first half of 2011, that was due to one-off items which covered a substantial underlying loss.

AIB returns to profitPre-tax figures reach €437m for first half of year

“AIB continues to make pro-gress on its strategic goals. The bank is profitable, generating capital and has the capacity and appetite to meet increased lending demand in the economy,” said Duffy. “Delivering professional service at competitive lending rates to our customers lies at the heart of our strategy while, at the same time, ensuring the bank is generating an appropriate return for share-holders, including the Irish State,’’ said the AIB CEO. AIB’S management statement for the third quarter effectively

For workplace new on AIB, see page 28

With the bank returning to profit and generating capital again, Duffy concluded that it should be in an “investable proposition” for outside investors by next March, although the amount and timing of any sale of State equity would be a matter for the Government. In the meantime, AIB Group’s senior management is considering making a “downpayment” on the €21bn debt to the State in the New Year. IBOA General Secretary, Larry Broderick, observed that as well as starting to return the debt owed to the State, AIB should also begin to repay the debt to its staff.

AIB writes down 1,300mortgage debts in pilot with IMHOOver 1,300 distressed

m o r t g a g e - h o l d e r s have managed to secure debt write-downs with AIB thanks to a pilot scheme run in conjunction with the Irish Mortgage Holders Organisation (IMHO). Acting as a third-party broker to advise distressed borrowers in their dealings with AIB Group, the IMHO has managed 1,330 long-term resolutions for people in mort-gage arrears in its first year working with AIB. Between 75 and 100 of these deals involved debt write-down on family home mortgages of €1,000-€190,000, which enabled the families to continue living in their homes. A further 279 deals provided debt write-downs on properties that were subsequently sold voluntarily – mostly in the buy-to-let sector. In 30% of the cases handled by the IMHO, the clients man-aged to achieve long-term sustainable solutions. AIB said the scheme, which is free to customers, has delivered significantl outcomes for customers who might not otherwise have engaged with the bank. The bank has now decided to extend their relationship with IMHO for another 12 months.

David Hall – Chief Executive of the Irish Mortgage Holders Organisation


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post scriptIs Murphy – rather than McEwan – in charge at RBS?RBS Chief Executive, Ross McEwan, has become all too familiar

with Murphy’s Law in the last few weeks. “If something can go wrong it will” – and for the Ulster Bank parent, a series of particu-larly embarrassing errors has done nothing for the bank’s efforts to rebuild its reputation after being found guilty of involvement in a number of recent scandals over LIBOR rate manipulation, foreign exchange rigging and mis-selling of insurance products. After the penalties levied by the Irish Central Bank on Ulster Bank over the IT meltdown in the summer of 2012, the British reg-ulators announced fines for RBS last month totalling £56m over the same incident Then lo and behold, the very next day, another IT failure meant that RBS, NatWest and Ulster Bank customers were unable to complete credit and debit card transactions or withdraw cash from ATMs during the morning rush hour. Then, a few days later, RBS had to apologise to the European Central Bank for overstating some of the financial information it had supplied for the ECB stress tests. So rather than passing comfortably,

in fact, RBS just scraped past the capital threshold. Having consumed a large plate of humble pie for the stress test error, the Bank was also required to look for second helpings by apologising to the House of Commons Treasury Committee for providing misleading answers to questions in June about the operation of its now disbanded Global Restructuring Group. And did we mention the con-troversy over the bonus for his predecessor, Stephen Hester? Or the Branch closures announced for Ulster Bank? “Things,” as D-ream suggested more in hope than confidence, “can only get better!”

Fines for foul-upThe RBS IT meltdown – which affected over 6.5m customers of RBS, NatWest and Ulster Bank for several weeks during the summer of 2012 – has drawn significant penalties from banking regulators in Britain and Ireland. Following parallel investigations, the Financial Conduct Authority has fined RBS £42m and the Prudential Regulation Authority has imposed a £14m penalty while the Irish Central Bank has levied its biggest ever fine of €3.5m on Ulster Bank. Outgoing RBS chairman, Sir Philip Hampton, said the problems “revealed unacceptable weaknesses in our systems.” “As I did back then, I again want to apologise to all customers in the UK and Ireland that we let down two and a half years ago.” The latest instalment of the fall-out from the meltdown has come on top of £125m RBS set aside in 2012 to cover compensation and costs associated with the disruption. Since then, RBS has invested hundreds of millions of pounds to improve its computer systems – which Chief Executive, Ross McEwan, said had suffered from “decades of under-investment.” Noting that “modern banking depends on effective, reliable and resilient IT systems, the FCA’s Director of Enforcement and Financial Crime, Tracey McDermott, said that: “The problems arose due to failures at many levels within the RBS Group to identify and manage the risks which can flow from disruptive IT incidents and the result was that RBS customers were left exposed to these risks.”

Though the ultimate responsi-bility for the failure of the IT system lies squarely with Ulster’s parent, RBS, the Central Bank found that Ulster Bank did not meet key obligations towards its Irish cus-tomers and to the banking system generally. “Thanks to the exceptional effort of staff in branches and contact centres the worst effects of this unprecedented situation were mitigated,” noted IBOA General Secretary, Larry Broderick. “Their commitment was crucial to the survival of the Bank and also provided a timely reminder that there is still an important role for personal interactions within modern banking. “Aside from passing judgement on the past, the comments from Derville Rowland, the Central Bank’s Head of Enforcement, offer some timely guidance on the future for all financial institutions. “Her remarks on the pivotal role played by information technology in modern banking are welcome – as are her comments on the need for the banks to have robust IT governance arrangements to ensure continuity of service. “The Ulster Bank incident highlights the major risks inherent

in devolving control of core technological operations beyond the immediate control of the institution. “If being part of the same bank group is not enough to guarantee continuity of service, then surely relationships with third-party service providers must be even riskier. “In light of this judgement and its own accompanying comments, we hope that the Central Bank will become proactive in scrutinising future IT initiatives by all Irish banks – including proposals to out-source or offshore key operations – so as to ensure that they will be sufficiently robust to avoid any possible systems failures.”

Other banks should learn from Ulster’s IT issues – BroderickUlster Bank has accepted a fine of €3.5m imposed by the

Republic’s Central Bank for the major disruption of service that arose in the summer of 2012 in the wake of a major systems failure at RBS – which provides IT facilities to its Irish subsidiary.

Larry Broderick

RBS Chief Executive, Ross McEwan

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Ulster Bank will continue to operate in Ireland as a

core part of RBS Group. In a statement released with results for the third quarter, RBS confirmed it was holding on to its Irish operation which it expects will deliver good returns – with ap-propriate investment. The statement brought to an end mounting speculation that RBS was sounding out other investors for either a sale or a joint venture. “Ulster Bank remains a core part of RBS,” said the Scottish parent, “offering a good strategic fit with our focused retail and com-mercial banking strategy.” Operating profit at Ulster Bank rose to £394m (€485m) in the nine months to the end of September, compared with a loss of £520m in 2013.

RBS commits to Ireland as Ulster Bank profits rise

Ulster Bank CEO Jim Brown

RBS Chief Executive, Ross McEwan

For workplace news on Ulster Bank, see page 30

Danske Bank reported a pre-tax profit of 4.5bn Danish Krone (€605m) for the three months to the end of September, up

almost 79% on the same period of last year – bringing the group’s pre-tax profits to 14.2bn krone (€1.9bn) in the first nine months of the year, up 65% on the same period in 2013. Danske’s Northern Ireland busi-ness reported a pre-tax profit of £81m for the first nine months of the year, even though the North’s economy has remained sluggish. “The economy is still on the fragile side,” said Danske’s CEO in Northern Ireland, Gerry Mallon, “but it’s clearly recovering,” he said. “I think we are at the stage where we foresee a good long-term profitable stretch ahead of us.” At the group level, Danske Bank said the improved profit po-sition was attributable to growth in most of its income streams, while expenses and impairments fell. The bank recorded a loan impairment charge for the nine-month period

of over 1bn krone (€137.8m) on its non-core activities, consisting mainly of its exposures in the Republic. Danske has come through a particularly difficult period since the onset of the financial crisis Apart from its exposure to the collapse in the Irish property market, Danske has also suffered from the fact that Denmark’s household debt levels were among the highest in the world – con- tributing to house price falls and a period of economic stagnation.

Danske profits improve

Businesses in Northern Ireland should begin to

borrow again, said Danske Bank’s Chief Executive, Gerry Mallon, after the bank made a pre-tax profit of £81m for the first nine months of 2014. With fewer bad loans to be written off, Danske Bank was having its best year on record in terms of winning new busi-ness customers, according to Mallon. Mortgages approvals had also risen by 48% even though Danske Bank only has a 6% share of the local mort-gage market and mortgage approvals by banks in Great Britain were at a 14-month low.

Mallon urges NI businesses to recommence borrowing

Danske Bank’s Northern Ireland CEO, Gerry Mallon

Danske Bank Chief Executive, Thomas Borgen

The 99.2% State-owned PTSB failed on the tests’ adverse scenario which requires banks to hold 5.5% common equity tier 1 capital. The main factors behind PTSB’s capital problems are its higher funding costs – compared to other Irish banks – and the constraints on its net interest earnings due to the fact that

around 60% of its mortgages are trackers. PTSB will have nine months to raise the capital necessary to meet the ECB threshold. The other Irish-based banks – AIB, Bank of Ireland, Ulster Bank and Merrill Lynch International – have all passed the ECB stress tests.

Permanent TSB takes stepsto meet stress test shortfall

Permanent TSB Chief Executive, Jeremy Masding

For workplace news on Danske Bank, see page 29

Although Permanent TSB (PTSB) failed the European Central Bank’s recent stress tests with a capital shortfall of €854.8m,

its actual deficit is now reported to be down to €125m in the wake of remedial action taken during 2014.


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third parties

Proposals from the Central Bank of Ireland to restrict how much

banks can lend to home buyers have been given short shrift by the Chief Executives of the Republic’s leading retail banks. Despite the regulator’s concern to reduce the risk of a new property bubble following year-on-year rises of 25% in Dublin property prices, a succession of bank bosses have warned that new mortgage propsals would be unworkable. In its consultation with lenders which will continue until December 8, the Central Bank proposes that in most cases, banks would have to restrict lending to 80% of the value of a home – subject to a limit of an amount equal to 350% of the borrower’s annual income. The Central Bank’s Head of Financial Regulation, Cyril Roux, has expressed concern that the market is returning to a place where some borrowers are taking out loans where their ability to repay is tenuous. “These measures have been carefully considered and, taking past experience into account, are being introduced at an appropriate time,” said Roux. However, bank chief executives ap-pearing before the Oireachtas Finance Committee recently were unanimous in calling for an easing of the proposed restrictions. “The proposals as they stand will impact on the ability of many first-time buyers to buy a home,” said Ulster Bank CEO, Jim Brown.

Ulster Bank estimates that 68% of the first-time buyers mortgages it has approved this year would have fallen foul of the new proposals. Calling for the restrictions to be loosened and introduced on a phased basis, Jeremy Masding of Permanent TSB said that demand for mortgage finance would fall if the proposed limits were not amended. Bank of Ireland boss, Richie Boucher, said he was concerned that borrowers would turn to unsecured credit to make up the shortfall in the deposit. While backing the principle behind the Central Bank’s proposals, AIB Chief Executive, David Duffy. said that the real issue “is execution and that involves, some element of transition so that the law of unintended consequences doesn’t drive out a sector of the economy.” Leading politicians have also weighed in to the debate with both the Taoiseach and Tánaiste suggesting that a requirement for borrowers to find 20% of the purchase price themselves might be onerous. In response to these concerns, the Central Bank Governor, Dr. Patrick Honohan, has indicated that some flexibility could be considered to assist first-time buyers. As yet no-one in authority has shown any willingness to take an alternative approach – by suggesting some control of property prices – to ensure that a sufficient number of houses remain within the reach of first-time buyers.

Bank bosses give frosty reception to regulator’s proposals to restrict mortgage lending

House calls

As house prices accelerate, the Republic’s Financial Regulator, Cyril Roux (inset) wants to inroduce mortgage caps (Photos: Photocall-Ireland).

ECB stress tests under pressureLatest bid to restore confidence inbanking suffers from RBS lapse

Ulster Bank’s parent, RBS Group, has been forced to admit

that there were errors in the data it submitted for the recent stress tests supervised by the European Central Bank (ECB). The revelation has caused some consternation within the ECB which had instigated the tests as a means of restoring confidence in the banking sector in the wake of the global finan-cial crisis. RBS conceded that it had overstated the amount of top quality capital it held. The adjustment wiped around €5bn in capital from the bank’s balance sheet – so that it only just passed the test. When the revised figures are applied to the “stressed scenario,” RBS’s capital ratio fell to 5.7% rather than 6.7% as previously reported – just above the test’s 5.5% pass threshold. A total of 25 euro-zone banks – including nine Italian banks as well as Permanent TSB – failed the European Central Bank’s stress tests, with a com-bined capital deficit of €25bn. Among those who failed the tests – conducted over the six months to October 2014 in conjunction with na-tional supervisors – were the world’s oldest bank, Italy’s Banca Monte dei Paschi with a capital shortfall of €2.1bn, and Dexia from Belgium with a capital hole of €339m. ECB Vice President, Vitor Constancio, said the results of the stress tests were “credible” and would help to create “a level playing field for supervision in the future.” Although 12 of the 25 failing banks had already taken measures in 2014 to address their capital shortfalls, 13 banks either have to apply the re-structuring or downsizing or increase their capital in other ways. Head of the ECB’s supervisory arm, Daniele Nouy, said that the introduction of a standard definition of non-performing loans was “a major step forward in terms of comparability across banks and countries.” In order to pass the tests, banks are required to hold a minimum of 8% Core Tier One assets, and a minimum of 5.5% in a stressed scenario.

Vitor Constancio

Daniele Nouy

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The national soccer team may have disappointed in

the summer – but Brazil’s bank workers proved that they are world class strikers by securing a significant improvement in their reward package for 2014 and 2015. The workers – employed by the country’s commercial banks – re-cently achieved a 8.5% pay rise and a bonus equivalent to 2.2 months’ wages after a nationwide strike lasting seven days.

The members of unions affiliated to the Confederação Nacional dos Trabalhadores do Ramo Financeiro also achieved improvements in other rewards (including food vouchers). The strike, which began after eight rounds of intensive negotia-tions between banks and workers collapsed in September, was backed by finance workers’ unions from about fifty different regions including Brazil’s largest metropolitan areas.

Management at major US bank, JPMorgan, is to

seek 3,000 more job cuts than were previously announced in its retail banking division. Its original job reduction targets of 2,000 posts in its card, merchant services and auto unit and 6,000 jobs in its mortgage banking unit have increased to 4,000 and 7,000 respectively.

Even though the Bank was required to increase staff involved in risk controls and reg-ulatory compliance, its consumer banking division will have shed 27,000 jobs over two years by the end of 2014 – with 18,000 elimi-nated in mortgage banking. Meanwhile, the headcount in its Chase Bank subsidiary is ex-pected to be 146,000 by year-end – a fall of 11,000 on 2013.

Brazil’s world class strikersBank employees win substantial pay rises after industrial action

Former AIB Chief Operating Officer, Anne Boden, who

resigned from the Group a year ago, plans to launch a new branchless bank in Britain – with a range of services provided mainly through mobile devices. Backed by digital advertising firm WPP, the as-yet-unnamed firm will apply to UK regulators for a formal banking licence shortly, according to the Times, and is expected to launch mid-2015. Targeted at 24- to 35-year-olds, the new business aims to attract millions of customers within five years with a business model closer to internet companies like Google or Amazon than to traditional banks. While the immediate challenge facing the project is to raise £100m in capital, it is also likely to face com-petition from Atom which claims to be the UK’s first ‘digital only’ bank with a licence application

already lodged with the Financial Conduct Authority and Prudential Regulation Authority. Created by Anthony Thompson of Metro Bank, Atom also plans to launch next year. In an interview with Computerworld UK magazine recently, Thompson said the new banks should have an advantage over their traditional rivals by not being tied to legacy infrastructure – enabling them to innovate and bring products to market quicker.

Anne Boden

Ex-AIB COO Boden aims to launch branchless UK bank

Speculation has increased in recent months that US invest-

ment giant, Lone Star, may be planning to establish a full- service bank in the Republic since it has now secured an Irish lending licence following its acquisition of sub-prime lender, Start Mortgages. Observers have noted that, in contrast to its previous Irish acquisitions, Lone Star has purchased a business with a staff of 70 along with the loans. Earlier this year Lone Star con-tracted Pepper to manage the mortgage book it acquired from

the liquidators of IBRC. The Start acquisition could be a sign of its intention to manage its loan book directly. Meanwhile Lone Star has also reached agreement with Britain’s Lloyds Banking Group to acquire €1.1bn of non-performing Irish residential home loans. The sale includes 4,000 bad loans, which Lloyds acquired from Halifax-Bank of Scotland before the closure of its Irish branches in 2010. Lloyds says it will continue to seek opportunities to deleverage its balance sheet by reducing non-core assets.

More job cuts at JPMorgan

Lone Star secures Irish lending licence

JPMorgan Chief Executive, Jamie Dimon


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So it would have taken just over a day for the average chief executive to have earned a year’s worth of the living wage (£7.65 an hour).

OBSCENE“While most workers are suffering con-tinuing cuts in their living standards despite the recovery,” said the TUC’s General Secretary Frances O’Grady, “boardroom pay just gets bigger and bigger every year. It is obscene that anyone needs to earn more than 2,000 times the living wage. “Most companies fail to provide proper information on how much their UK staff earn. The Government is com-plicit in this cover-up – as ministers refuse to make companies publish the kind of information investors and employees need to work out the gap between boardroom pay and the rest. “These shocking new figures show that it is those at the top gaining from the recovery, while living standards are still falling for the majority,” she said.

life trials of the slick & shameless…

LOOSECHANGE

UK’s top director earned a year’s worth of the living wage in just 49 minutesAfter just forty-nine minutes in

work in 2013, Simon Peckham, Chief Executive of UK investment company, Melrose plc, had earned as much pay as a worker on the living wage earns in a year, according to new research from the British TUC looking at executive pay in Britain’s top 350 companies. A former RBS employee, Peckham was Britain’s highest paid CEO in the financial year ending in April 2013 – with an annual salary of £31,157,399 – or almost £120,000 a day. This is 2,238 times more than a worker on the living wage of £7.65 an hour working 35 hours a week. With pay statistics provided by the independent researchers from Incomes Data Services, the TUC study, Executive Excess, shows that for the year ending April 2013, total earnings for the highest paid CEOs of the FTSE 100 companies averaged £3,195,353 – 230 times the annual full-time living wage for a worker outside London.

Above: Frances O’Grady, General Secretary of the British Trades Union Congress

Top: Simon Peckham, CEO of Melrose plc – which specialises in acquiring ‘dis-tressed’ businesses.

The corruption of some of the world’s largest currency

dealers was exposed recently as regulators in the UK, USA and Switzerland imposed fines totalling over £2bn on five leading banks found guilty of rigging foreign exchange markets. Describing a “free-for-all culture” on trading floors which facilitated the rigging of markets for five years from January 2008 right up to October 2013, the Financial Conduct Authority (FCA) in the UK and two US regulators, including the Commodity Futures and Trading Commissions (CFTC), imposed record-breaking penalties on Royal Bank of Scotland, Citibank, HSBC, JPMorgan and UBS – outstripping the level of the previous fines imposed for LIBOR rigging. In the UK, UBS was fined £233m (€296m), with Citibank next on £225m (€286m), JPMorgan with £222m (€282m), RBS at £217m (€275m), and HSBC with £216m (€274m). In the US, the regulator fined Citibank and JP Morgan $310m (€249m) each, RBS and UBS $290m (€233m) each and HSBC $275m (€221m).

Currency traders who don’t givea forex for decen cy and integrity£2bn in penalties levied on five major banks

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Hisco’s substantial remuneration package was revealed in the recent annual report of ANZ Bank’s Australian parent – which recorded his base salary as $1.3m (€815,000) for 2013 – together with $1.28m (€802,000) in cash, $1.17m (€734,000) deferred as equity, and $480,000 (€300,000) in other benefits. Altogether his total rewards package has risen by more than 11% from last year’s total of $3.8m (€2.38m). So Hisco earns more than 120 times the salary of his lowest paid employees. Little surprise, then, that his offer of an annual pay increase of less than 3% has been so badly received by his employees – especially when he has also

demanded the introduction of a new working hours arrangement – which would leave his staff not knowing from one month to the next when they would be required to start and finish work. Robert Reid, General Secretary of the First Union which represents staff at ANZ Bank, said many employees would find Hisco’s salary difficult to comprehend. “That kind of pay is just beyond belief both for people that work for this organisation and also for the general public,” he commented. “No one person can be worth that amount of money.”

(See Page 33 for more).

…because they’re worth it!

LOOSECHANGE

The Chief Executive of ANZ Bank in New Zealand, David Hisco, has consolidated his position as the country’s highest-paid executive with a massive pay rise taking his total annual earn-

ings to NZ$4.22m (€2.65m).

Bank boss is best paid executive in NZANZ CEO earns 120 times as much as some of his staff

Westpac chief executive, Gail Kelly’s pay climbed to A$12.8m (€8.9m) in the last financial year, making her the highest-paid

boss among Australia’s ‘Big Four’ retail banks. According to the bank’s annual report, published last month, over half of Kelly’s total remuneration was accounted for by A$7m (€4.9m) worth of previously issued performance shares that vested during the year. Kelly’s basic pay was just over $3m (€2.1m), while she netted another A$2.7m (€1.9m) in short-term cash incentives. Westpac’s competitors, ANZ Bank, reported that its CEO, Mike Smith, received A$10.7m (€7.5m) last year while his counterpart at the Common-wealth Bank, Ian Narev, was paid A$8.1m (€5.7m). While no figures are available for the new boss of National Australia Bank, Andrew Thorburn, it is expected that his remuneration will be similar to that of his predecessor, Cameron Clyne, who received A$7.7m (€5.4m) last year.

Oz: the ‘great and powerful’

Westpac’s Gail Kelly

Switzerland’s Financial Market Supervisory Authority imposed a further penalty of CHF134m (€111m) on UBS – citing an excessive bonus culture as one of the key factors in the reckless and unlawful behaviour of dealers. A sixth bank, Barclays, is in dis-cussion with regulators about the penalties it must pay for manipulating foreign exchange markets. So far £150bn in fines and legal costs have been incurred by leading financial institutions, according to analysts at Morgan Stanley, who believe that in the next two years Britain’s big five banks will incur another £21bn – with other European banks and US firms taking that total to £45bn. Last month’s revelations of the “free-for-all culture” on the trading floors could be repeated soon. Other regulators are still investigating the foreign exchange markets. US Attorney General, Eric Holder, is said to be close to completing another investigation which could lead to both civil and criminal charges with further penalties for banks that have already been fined.

Currency traders who don’t givea forex for decen cy and integrity£2bn in penalties levied on five major banks


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Ireland is a very small open economy and, generally speaking, it is in our interest to have a rules-based trading environment. But it has to be fair, and TTIP is anything but fair. In fact the rules are stacked in favour of business from the beginning. A provision of the deal known as ‘Investor State Dispute Settlement (ISDS)’ would allow corporations to sue Governments before an arbitration panel composed of corporate lawyers, at which other people have no representa-tion and which is not subject to judicial review. This could allow a US multinational to sue a future Irish Govern-ment for raising the minimum wage on the grounds that such a policy decision affected its profits. Consider the chilling effect that would have on Governments and civil servants. We would never again as a Congress be able to achieve legislative change to benefit workers. A number of major corporations are already suing national governments

in Germany, Uruguay, Australia, El Salvador and Ecuador, using similar mechanims. In short TTIP is a manifestation of an aggressive neoliberalism aimed at so circumscribing the policy space for Governments that politics will be separated from economics such that it will matter little what kind of Govern-ment is elected: it will complete the subjugation of society to market. TTIP could result in the align-ment of European labour markets with those of the United States with all the inequality and insecurity this implies - a kind of transatlantic ‘Race to the Bottom.’ This would serve to re-inforce a global drift away from mainstream politics. If you have free trade and free circulation of capital and people, but destroy the social state and all forms of progressive taxation, the temptations of defensive nationalism and identity politics will very likely grow stronger than ever in Europe and the United States.

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regulation issue

The Transatlantic Trade and Investment Partnership (TTIP)

is a free trade agreement between the US and the European Union, currently being negotiated on behalf of EU citizens by the Euro-pean Commission. If it goes ahead it will be the biggest bilateral trade deal ever as the US and EU combined constitute about half of the global economy. TTIP will have permanent and far-reaching implications for government procurement, public services (including health), finance, food, chemicals, the environment, climate change regulation, data protection laws and many other areas. Many argue that the TTIP is not about free trade at all, but rather an attack by capital to prise open markets and deregulate, further entrenching neoliberalism. According to ICTU General Secretary, David Begg, the TTIP is “profoundly anti-democratic” and would make it “almost impossible for Governments to introduce any progressive legislation in future.” If accepted, he says, the TTIP will effectively complete the ‘subjugation of society’ to corporate needs.

INSIDE THE TTIP

TTIPing the balance from citizens to corporations

Street theatre in Britain to highlight the threat posed by the Transatlantic Trade and Investment Partnership to the National Health Service (Photo: Glyn Thomas).

Former EU Commission President Manuel Barroso

The main aims of the Transatlantic Trade and Investment Partnership – according to a UK Parliament briefing – are to increase trade and investment by reducing tariffs, aligning regulations and standards, increasing protection for overseas investors, and improving access to government procurement markets by overseas providers. The improved investor protection is to be achieved through the ‘Investor State Dispute Settlement’ – which will give foreign companies a right to take legal cases directly against nation States if those companies believe they have suffered expropriation or discrimination. It effectively puts companies on the same legal footing as nation States. The ambition of TTIP, in fact, goes beyond the relationship between EU and US: its purpose is to impose global rules on trade – as the then European Commission President Barroso put it in a speech in the US earlier this year: “TTIP should become the economic pillar of the EU and US alliance. It should be our joint attempt to shape a fast changing world and to set the standards of the future. It should act as a platform to project shared EU-US values world-wide with regard to open markets and the rule of law.”

David Begg: TTIP is “profoundly anti- democratic.”

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The new Act recognises that unions may also have a role to play in advising workers who wish to make a protected disclosure. Where this happens, unions are required to protect the identity of the whistleblower as far as possible.

GUIDELINESThe Government Department spon-soring the new legislation – the Department of Public Expenditure andReform – is consulting with the Labour Relations Commission to produce guidelines on best practice for em-ployers to develop appropriate policies and procedures to enable workers to report reasonable suspicions of wrong-doing in the workplace. For example, in some employments, a specific member of management maybe designated as the appropriate officialto receive such disclosures and to initiate an inquiry. In others, this may not be possible if the identity of the whistle-blower is to be fully protected. In these cases, an external agency may be desig-nated to supervise any investigations. The workplace policy should also specify the procedures for keeping the whistle-blower up to speed with the progress of the investigation.

IBOA is currently considering the terms of a model agreement – incor-porating the provisions of the new Act – which will form the basis of renewed engagement with senior managements in all of the enterprises where our members are employed – with a view to transforming the prevailing workplace culture. The Union is also examining the training implications on the roles and responsibilities of senior officials and activists under the new law.

MATURITY“Aside from the important new legal precedents like access to interim relief and the expanded definition of workers, the new law sets a positive tone,” said IBOA General Secretary, Larry Broderick, “by expecting greater maturity from both employers and workers. Essentially the Act assumes that workers will report their suspicions in good faith and that employers will be keen to investigate these suspicions. “The protections of the Act kick in when employers fail to meet these expectations,” he said. Most reasonable employers understand that it is far better to address these concerns openly rather than to sweep them under the carpet.”

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regulation issue

The new Protected Disclosures Act provides important new

rights for all workers in the Republic of Ireland. Although employees in the finan-cial services sector already enjoy some statutory protection under the Central Bank (Supervision and Enforcement) Act, 2013, if they make disclosures in good faith about breaches of financial services legislation, the new Act extends the scope of issues where protected disclosures may be made and provides additional safeguards to protect whistleblowers from being penalised or suffering discrimination.

SCOPEWhile the scope of the Central Bank Act is limited to breaches of financial services legislation (and attempts to conceal breaches of that legislation)the “relevant wrongdoings” that can be reported under the new Protected Disclosures Act include breaches of other legal obligations, threats to health and safety or the environment, improper use of public funds, miscarriages of justice, other criminal offences, as well as any attempt to conceal information about wrongdoings like these.

Breaking the code of silence

New law on protection for whistle–blowers is first step towards ending climate of fear at work


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In addition, the changes at the lower end of the scale with regard to the Universal Social Charge (USC) may well have the unintended consequence of trapping people in lower paid work and preventing them from taking up extra work. Congress views the Budget proposals on water charges as a major missed opportunity as it has created a regime which is cumbersome, clunky and barely ameliorates the situation, especially for working families. There are many low paid workers who will see no benefit from these changes.

Lack of ambition on job creationCongress was disappointed at the lack of ambition and failure to make the creation of decent paid work a focus of Budget 2015, as this is the only way to guarantee a genuine recovery. The real problem is that our level of investment is far too low.

9% VAT rate for hospitality sector questionable

The retention of the 9% VAT rate for the restaurant and tourism sector will not make a major impact and the cost to the taxpayer of this measure is highly questionable, when set against the actual number of good, decent jobs created. Remember, the restaurant and catering sector also has a very poor record of compliance with labour law and standards.

For example, someone on €70,000 a year gains four times as much from Budget 2015 as someone on the Mini- mum Wage.

People earning under €30k lose outOverall, the combined impact of the changes in rates and bands amounts to a redistribution upwards. Indeed, once water charges are taken into account most people under €30,000 are net losers.

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The Irish Government’s Budget for 2015 has failed the required

tests on job creation and fairness since the main winners are high earners and major corporations. While some measures are welcome – like increased investment in social housing, the partial restoration of the Christmas Bonus and the increase in Child Benefit – the fact remains that the tax changes are regressive and skewed hugely towards the top end of the scale.

Republic’s Budget fails key tests on fairness and jobs

by David Begg, General Secretary, Irish Congress of Trade Unions

“Politics should mean that voters are offered a meaningful choice, and adequate representation,” said Bunting. “Northern Ireland is facing a bleak economic future for its working poor, its NEETs, and everyone who needs first class public services. Based on the infor-mation we have received, this is what is being proposed for at least another five years. “Congress is escalating its campaign of opposition to austerity and to appeas- ing the wealthy. We will consult our members to ensure a cohesive and deter-mined response from our movement.”

“We have been told that this is only the start,” said the ICTU leader. “Northern Ireland is facing years of austerity, of welfare reform, of priva-tisation, of service reductions and job cuts, while most political parties still seriously advocate a massive further tax cut for big businesses. “The economy of Northern Ireland, its society and its people cannot take the added pressures of austerity on demand from Westminster. “We do not accept that there is no option but to accept this status quo,” he said.

Northern Ireland’s current economic difficulties have

undoubtedly been exacerbated by the austerity policies pursued by the Conservative-Liberal Democrat Government at Westminister, “After weeks of blaming Northern Ireland’s economic crisis on welfare reform, our politicians have now woken up to reality,” said ICTU Assistant General Secretary, Peter Bunting. “As the trade unions have consis-tently argued, the basis of the crisis is four years of Westminster-enforced austerity.

Westminster’s austerity policies exacerbate Northern Ireland’s economic difficulties

Peter Bunting, Congress Assistant General Secretary (Photo: Photocall- Ireland).

political economyLeft: The Republic’s Finance Minister, Michael Noonan (Photo: Leon Farrell, Photocall-Ireland).

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political economy

Congress backsvoter registrationin preparation for upcomingreferendum on marriage equality

IBOA General Secretary, Larry Broderick, backs the Congress campaign on vote registration ahead of marriage equality referendum.

With several Constitutional referenda likely to be

held in the Republic next year – including one on same-sex marriage – a voter registration drive was held during November to ensure that as many people as possible will be able to participate in next year’s plebiscites. Led jointly by the Gay and Lesbian Equality Network, the Irish Council for Civil Liberties and the Marriage Equality campaign, the Yes Equality drive was supported

by a number of civil society organisations including the Irish Congress of Trade Unions. IBOA General Secretary, Larry Broderick – who also serves on the Executive Council of Congress – said that exercising the right to vote was an important civic responsibility. “I have no hesitation in urging anyone who is eligible to vote, to register with the authorities so that they can utilise the demo-cratic process to extend social and economic equality in Ireland,” he declared.

The Rights Campaign was launched by ICTU Youth

– the Youth Committee of the Irish Congress of Trade Unions – recently to highlight the need for the plight of young people to become a greater policy priority in Ireland. The campaign has decided to focus on pursuing five key rights

which should be available to every young person:• the right to a job;• the right to decent and secure

employment;• the right to equal pay for equal

work;• the right to collective bargaining;

and• the right to a future in Ireland.

Putting the country to rights

IBOA members take part in the NIC-ICTU march and rally in Belfast to demand ‘A Pay Rise for All’ (Photo: Kevin Cooper/Photoline).

A pay rise for allAn estimated 1,500 people took part in a march and rally in

the centre of Belfast in October to protest over low pay – under the theme of A Pay Rise for All. The event was organised by the Northern Ireland Committee of the Irish Congress of Trade Unions (NIC-ICTU) to coincide with similar rallies organised by the Scottish TUC in Glasgow and the British TUC in London under the slogan “Britain Needs a Pay Rise.” While the British TUC has reported that average wages in Britain had fallen by £50 a week, in real terms, since 2008, NIC-ICTU points out that Northern Ireland has a higher number of low-paid workers than any UK region. “Almost a quarter of workers in Northern Ireland earn below the Living Wage, and that number is increasing,” said Congress Assistant General Secretary, Peter Bunting. “Getting money back into people’s pockets is essential to a strong recovery. That’s why trade unions are campaigning for action that will start to move the economy in the right direction,” he added.


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In a bid to deflect the public outcry over branch closures,

major retail banks have offered two main arguments to justify their action. Firstly, they say, customers now prefer online banking (via mobile phones and PCs) to branches; and secondly, customers who cannot access online services can go to the nearest post office for a watered down version of the face-to-face service they previously enjoyed in their branches. While the banks have offered some statistics which purport to support their claims, there is as yet no independent evidence to suggest that customers welcome the closure of bank branches. Indeed the Deloitte retail study (see Spectrum April 2014) suggests that the opposite is the case. However, many customers appear to be driven towards mobile banking by a

deliberate strategy designed to limit access to face-to-face services – by reducing branch staffing levels – so that eventually they will tire of having to queue. Then as customers reluctantly switch to online channels, the bank can claim that – since footfall and in-branch transactions are down – the branch is no longer viable. Some banks consider that the nearest post office is an acceptable substitute when they close branches. But whether post offices exist on a stand-alone basis or as part of larger retail operations, few can provide financial advice from qualified staff. Indeed, at times in some con-venience stores which house postal counters, the staff may well be school students working part-time who would not be expected to offer any advice. So in many cases the actual level of banking service offered in a post office may amount

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customer focus

Going PostalBanks’ obsession with cutting costs risks major damage to their brands

The demand follows a call from its counterpart in the UK for a similar investigation into aspects of British banking. The CAI hopes that the new Competition and Consumer Pro-tection Commission (CCPC) – created after the merger of the National Consumer Agency and the Competition Authority – will prioritise the banking sector for investigation. The Consumer Association’s Deputy Chair, Michael Kilcoyne, wants a full investigation of the banks’ treatment of personal con-sumers and small firms. “There is clear evidence that banks are treating people badly, whether it is the charges for using current accounts, people in trouble with mortgages or people trying to set up a business,” said Mr. Kilcoyne. “They are not there to serve the cus-tomer any more.” While the new body has yet to decide whether it will conduct a full investigation, a spokesperson for the Commission noted that Irish banking now offers less competition for consumers. “With increasing fees and the removal by the main providers of transaction fee-free banking, the majority of consumers have been faced with additional costs associated with their day-to-day banking over the past few years. “The market is offering con-sumers fewer and fewer alternatives, little or no certainty for switchers and a lack of innovation in terms of ‘clever use’ pricing packages.”

The Consumers’ Association of Ireland (CAI) has called for an investigation into the lack

of competition in Irish banking and the need for greater transparency in current account charges for personal and business customers.

Consumer body wants inquiry into bank charges and competition

Above: Mr. Michael Kilcoyne, Deputy Chair of the Con- sumers’ Association of Ireland.

Below: Ms. Isolde Goggin, Chair of the new Competition and Consumer Pro- tection Commission in the Republic.

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Going PostalBanks’ obsession with cutting costs risks major damage to their brands

Above: the post office in Little Paxton in Cambridgeshire is located in the local Anchor pub.

Below: Gilsenan’s Pub and Post Office in Drumree near Dunshaughlin in Co. Meath: could premises like these be the future of branch banking?

to little more than an indoor ATM. Outside major towns and cities in both Britain and Ireland, post offices are rarely sustainable as stand-alone businesses. So they are frequently found in a wide variety of retail premises – like convenience stores and even a public house – like the Little Paxton Post Office in Cambridge-shire located in the village’s Anchor pub (left) or Gilsenan’s in Drumree, Co. Meath (below). And even if post office staff manage to develop some familiarity with one bank’s financial products and services, this will inevitably be diluted as more institutions seek tie-ups with the postal network. And since both the British and Irish postal services offer their own range of financial products, then it is even more unlikely that they will attempt to push products and services from a particular banking group. Unfortunately it is no longer a surprise when banks behave in a myopic fashion in pursuit of short-term cost savings – especially at the expense of staff and customers. But the striking feature of this new move by banks to ‘outsource’ their branch services to the post office is their apparent willingness to squander the benefits of the huge investments they have made in pro-moting their brands. Even though Irish banks spend many millions each year on advertising and sponsorship, it seems they are content to allow an important

aspect of the relationship with their customers to rest in the hands of third-party staff with no particular brand loyalty or even familiarity with the bank’s services. So any competitive edge the bank believes it may have developed through some unique selling point will be immediately lost if the cus-tomer’s abiding experience is of standing at a postal counter in a shop – or even a pub – where the bank’s offering is just one of many products from a variety of financial institutions – with which the counter staff seem unfamiliar. Of course, it is just possible that this depressing scenario is not an unforeseen side-effect of the new trend – but a deliberate calculation. Maybe some of these institutions have decided that they are only really interested in corporate clients and high net worth individuals. So if they happen to lose customers on low and medium incomes as a result of initiatives like this, they are not unduly concerned. One of the key lessons of the growing influence of marketing within banking is that, when you are challenged, it is no longer important to have the right answer: all you need is an answer. So long as your response appears to make sense at a very superficial level, you can avoid being truly accountable – in other words, spin! It is, of course, a deeply cynical approach – and one which does not augur well for the future of banking.

UK Government considers new conduct regimeThe British Government has launched a consultation on proposals to extend the scope of tougher new standards of banking conduct to include senior employees of foreign banks working in the UK branches. Initially introduced for local banks in 2013, the Senior Managers and Certification Regime enables the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) to fine or sanction senior bank managers for misconduct that occurs in their areas of responsibility. The proposals put forward for consultation would apply the Senior Managers and Certification Regime to all banks operating in the UK.

UK regulator fines Barclays over failures in London Gold FixingThe Financial Conduct Authority in the UK has imposed a fine of over £26m on Barclays Bank for failing to ensure adequate management of conflicts of interest with its customers – as well as for systems and controls failings – in relation to the London Gold Fixing – the process for setting the price of gold on the London bullion market. These failures occurred between 2004 and 2013.

Lloyds agrees penalty to settle LIBOR casesLloyds Banking Group is to pay £218m to the US and UK regulators to settle charges of manipulating the London Interbank Offered Rate (LIBOR) and Sterling Repo Rate between 2006 and 2009. According to a spokesperson for Lloyds, everyone involved in the rate manipulation has either left the group, been suspended or is subject to disciplinary proceedings.


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ahead with pay reforms “because the behaviour of the financial sector has not changed fundamentally in a number of dimensions since the crisis.” “While some changes in behaviour are taking place, these are not deep or broad enough” she continued. “The industry still prizes short-term profit over long-term prudence – today’s bonus over tomorrow’s relationship. “Some prominent firms have even been mired in scandals that violate the most basic ethical norms – LIBOR and foreign exchange rigging, money laundering and illegal foreclosure.” Warning that the perception that some of the world’s largest financial institutions are too big to fail has still to be addressed, Lagarde said that the issue remained a major source of systemic risk, with implicit public sub- sidies of $70bn (£42bn) in the US, and up to $300bn in the Eurozone. Lagarde attacked banks for resisting efforts to reform the financial system to allow the biggest financial institutions to fail safely. “The bad news is that progress is still too slow, and the finish line is still too far off. Some of this arises from the sheer complexity of the task at hand. Yet, we must acknowledge that it also stems from fierce industry pushback, and from the fatigue that is bound to set in at this point in a long race.”

Continuing failure in meeting proper ethical standards in

banking as well as rising inequality pose a major threat to growth and financial stability, according to the Managing Director of the International Monetary Fund, Christine Lagarde.

Lagarde told an international con-ference on ‘Inclusive Capitalism’ in London recently that, even six years after the onset of the global financial crisis, senior bankers were not only resisting reform but also still too focused on taking excessive risks to secure bonuses at the expense of public trust. She called for the G20 to push

Culture of banking still largelyunchanged – warns IMF chief

If bankers fail to realise their obligation to create a fairer

society, then capitalism is at risk of destroying itself, the Governor of the Bank of England has warned. Speaking at an international conference on ‘Inclusive Capitalism’ in London recently, Mark Carney complained that major banks had operated a “heads-I-win-tails-you-lose” approach. Questioning if the behaviour of some traders met acceptable ethical

Banks have duty to create fairer society – declares Bank of England Governor

Mark Carney

Christine Lagarde

standards – he declared that any who failed to achieve high professional stan-dards should be ostracised. Warning that rising inequality seemed to signal a breakdown in the basic social contract at the heart of capitalism, Carney said: “We simply cannot take the capitalist system, which produces such plenty and so many solutions, for granted. Prosperity re-quires not just investment in economic capital, but investment in social capital.” In the run-up to the financial crisis, Carney said market radicalism

and light-touch regulation had eroded fair capitalism, while scandals such as the rigging of LIBOR markets had undermined trust in the financial system. “Just as any revolution eats its children,” he said, “unchecked market fundamentalism can devour the social capital essential for the long-term dynamism of capitalism itself. “To counteract this tendency, individuals and their firms must have a sense of their responsibilities for the broader system.”

EBA to acton breaches ofbanking bonus cap?

The European Banking Authority (EBA) is reported to be planning to take action against banks which pay their senior executives cash allowances in order to circum-

vent its bonus cap. According to the Financial Times, the EBA is considering a proposal for fixed allowances to be assigned to specific posts rather than individuals. This would mean that banking professionals or traders performing the same role would receive the same allowance, regardless of their individual performances. The EBA is anxious to restrict the payment of excessive bonuses which might encourage the kind of reckless risk-taking which led to the banking crisis.

culture clash

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Pattenden enlisted in the Royal Sussex Regiment at Chichester, in September 1906, aged 20. At this time, William was described as being 5 foot 6 inches tall and weighing 141 lbs (10 st 1 lb) with a scar over his left eye. He had dark brown hair, brown eyes and a fresh complexion. Between October 1907 and December 1913 Pattenden served with the regiment’s 1st Battalion in India (Ambular, Rawalpindi, Gharial and Peshawar). He transferred to the Army Reserve in December 1913. According to the Army Statement of Services, Pattenden was formally discharged from the Army Reserve in September 1914. Sometime after 1913 he moved to Belfast and joined the Northern Banking Company as a Head Office Porter and Caretaker. At this time he was married and living at 13 Third Avenue, Belfast. When war broke out, as a Reservist Pattenden was immediately recalled to the Royal Sussex Regiment. With its 2nd Battalion, he was sent immediately to France and from there to Belgium. William Patten is commemorated on the Menin Gate Memorial at Ypres, the Shankill Road Mission War Memorial and on the Northern Banking Company War Memorial in Donegall Square West, Belfast.

Further information on banking memorials is available online at:http://northernbankwarmemorials.

blogspot.co.uk/http://ulsterbankwarmemorials.

blogspot.co.uk/

remember

Published by the Collins Press and written by Paul Rouse and Mark Duncan, Handling Change was specially commissioned by the Union. The evolution of the IBOA offers a fascinating picture of Ireland – not least of how banking moved from a thoroughly conservative industry to one so reckless as to bankrupt the Irish State. IBOA has a limited number of copies of the book for sale to members at the special discount price of E10 or £8 (including postage and packing). To order up to two copies at the special discount price, please send your name, address, the number of copies required and your IBOA membership number – together with a cheque or postal order for the appropriate amount to IBOA History Orders at IBOA House, Stephen Street Upper, Dublin 8 or e-mail [email protected].

Handling ChangeA history of IBOA

According to a special feature on “Ulster and the War - Bank

Clerks in the Army,” the Belfast News Letter of December 15, 1914 reported that within the first few months of what was later to be known as the First World War, over 100 bank clerks or employees had either volunteered for service or had been ‘called up’ as members of the Army Reserve. Private Michael Millett from the Bank of Ireland was probably the first bank official to be killed in action. Millett was born around 1886 in Kilcloney, Co. Roscommon and was the son of Colour Sergeant James Millett. He would have joined the Bank of Ireland around 1902.

Soon after, he enlisted in the Army Reserve in Athlone. At the outbreak of war he was im-mediately called up to serve in the 2nd Battalion of the Prince of Wales’s Leinster Regiment (Royal Canadians). After training, he was sent to France with the British Expeditionary Force – where he was killed in action on October 20 1914 aged 28. Millett is remembered on the Ploegsteert Memorial, Comines-Warneton, Hainaut, Belgium and on the Bank of Ireland War Memorial in College Green, Dublin. Shortly after Millett’s death, Sergeant William Archibald Pattenden from the Northern Banking Company was killed in action at Ypres on October 31, 1914. Originally from Tunbridge in Kent,

Gavin Bamford is a retired Assistant Manager from Northern Bank and a member of the IBOA.

Bank workers on the frontline1914

by Gavin Bamford

CURRENTACCOUNTS


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Our social partners… Twitter and FacebookA growing feature of the Union’s communications activity is the daily tweets and posts on Twitter and Facebook. As well as pro-

viding up-to-date news and information directly from IBOA, every day our social media channels also link into other news sources for stories of interest to our members from the world of banking, finance and trade union affairs. If you are looking for a one-stop shop for all the latest news on the key developments in financial sector, why not follow us on Twitter or like us on Facebook?

GOINGCONCERNS

inside iboa

Major website make-over under way

Follow us on Twitter@iboaunion253 followers and counting –Next target: 400 followers by the end of 2014With your support, we can make it

Like us on Facebookiboaunion335 likes and counting –Next target: 500 likes by the end of 2014With your support, we can make it.

A major overhaul of the Union’s websites is now

under way to ensure that they are easier to navigate – with a new cooler design. The new sites should go live in time for the Christmas break – so members will have time to try out the new look and feel while exploring the sites’ addi-tional features. One of the most noticeable changes will be “screen opti-misation” – which means that the appearance of the websites will automatically reconfigure

to suit the size of the monitor being used to view them. This is not just a matter of a web page scaling down to fit the dimensions of a smaller screen: it is about re-arranging all of the elements of a page so that they are presented in the most effec-tive way for the viewer. The continuing surge in popularity of mobile devices like smartphones and tablets, means that more and more members are using these smaller-sized devices – in preference to laptops and desktop computers

– to connect to the Union’s websites. So the make-over of the Union websites will ensure that the Union’s online facilities will always be delivered in the best possible format for members. The revamp has also afforded a timely opportunity to rede-sign other elements of the site to make navigation smoother – and to provide easier access for members to the My IBOA area of the website – which uses simple password protection to provide news and information

services exclusively to members only. This initiative is one of a number of developments aimed at ensuring that the Union can make greater use of digital technology. The Union’s online activity has been complemented in recent months by a more visible presence in social media chan-nels like Twitter and Facebook (see below). Your virtual Union can be accessed on www.iboa.ie or www.iboa.org.uk

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from members – for various aspects of the Union’s future structure and operations. The four remaining workstreams have yet to be activated since they require inputs from some of the first seven groups before they can begin their deliberations. These include the workstream on the Union Constitution which cannot begin its work in earnest until conclusions have been reached on the recommendations from other workstreams dealing with the structure and scope of the Union and the roles and responsibilities of its activist members.

GOINGCONCERNS

inside iboa

Putt yourself in the picture

with an IBOAGolf Umbrella

€12 or £10SPECIAL MEMBERS PRICE

See www.iboa.ie or www.iboa.org.ukfor more information

Work on the Union’s strategic review process, Vision 2020,

is continuing – with a number of Executive Committee workstreams examining various aspects of the Union’s structures and operations with a view to equipping it to meet the challenges of the future. The workstreams were established by the Union’s Executive Committee after a major gathering of Bank District Secretaries and Executive Committee members in May in Wexford. In the formal business of the two-day event, the Special Delegate Conference backed four amendments to the Union’s Constitution to post-pone next year’s Biennial Delegate Conference (and the associated proce-dures) by twelve months to enable the Vision 2020 process to continue without interruption on formulating proposals for a new structure and operational model for approval in late 2015. This decision followed Conference presentations from independent con-sultants, Ampersand, on feedback from various stakeholders and on a suggested approach to developing new structures – together with a background briefing on IBOA’s financial status and prospects from Honorary Finance Officer, Sharon McAuley. The workstream process – estab-lished by the Executive Committee to progress the strategic review – is being supported by consultants, PwC. Seven of the eleven workstreams have been meeting since September and, as we go to press, are close to making a number of recommendations. Each workstream has considered a range of options – including feedback

Building for the futureWork continues after Conference backing

THE WORKSTREAMS

• Accounts/Membership Services;

• Budgetary Framework• Communications;• Constitution;• Functions of Union;• IBO Holdings;• Research;• Roles/Responsibilities;• Training; • Union Footprint; and• Union Structures/

Representation Roles.

Above: The Union’s Special Delegate Conference in Wex- ford votes to amend IBOA’s Constitution to enable the strategic review to continue without interruption.


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DISCOUNTWINDOW

making your cash go further

Your IBOA subscription isworth a great deal moreTaking it to a new levelDiscounts and savings are always welcome – but most especially in times when money is particularly tight. That’s why IBOA has been exploring ways and means to ensure that your take-home pay can go further by achieving better value.

Our IBOAPlus scheme has been a modest attempt in this direction and has produced many worthwhile savings for members. But this month, we are launching a new scheme for members which takes our efforts to a whole new level – both in terms of the savings to be made and the range of products and services available.

The IBOA Group SchemeThe IBOA Group Scheme provides special member discounts through an easy-to-use online directory covering hundreds of offers from leading brands and service providers – which you can access from a variety of devices such as desktops, laptops, smartphones and tablets.

The range and value of these discounts is so great that you could more than cover the cost of your IBOA membership subscription by the savings you can make!

The IBOA Group Scheme is free to IBOA members (including Pensioner Members and Associate Members). So even if you are leaving your employment, it will be worth keeping up your link with the Union – for this benefit alone.

Accessing the IBOA Group SchemeAccess to the IBOA Group Scheme is via the My IBOA area of the Union websites – www.iboa.ie and www.iboa.org.uk – to ensure that the benefits are available to members only. But don’t worry regis-tering in the My IBOA area couldn’t be easier. You can now use either your IBOA membership number or your employee (bank/work) number to verify your identity. Then set yourself a password and get ready to make great savings!

While you are in the My IBOA area, you can also update your personal details – if you have a change of address or other contact information. You can also set your communication preferences to tell us how you wish to receive news and information from IBOA and to indicate any areas of special interest.

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DISCOUNTWINDOW


26

Grand Opera House, BelfastMatinee Performance on December 27

Commencing 2.30pm

Tickets: Normal Price: £27 –IBOA Price £17

(Max: 6 tickets per member)First come - first served

Bord Gáis Energy Theatre, DublinDecember 20 2014: 7.30pm

Special IBOA Price: €45/£36 per ticketMembers are restricted to a maximum of six tickets each

Book online at www.iboa.ie/services/eventsdiary or www.iboa.org.uk/services/eventsdiary

GAIETY THEATRE, DUBLIN DECEMBER 27 2014Tickets: Matinee (1.30pm) Grand Circle €20.60

Evening (6.30pm) Parterre €21.50Members are restricted to a maximum of six tickets each

Book online at www.iboa.ie/services/eventsdiary

Cork Opera HouseJanuary 3, 2015

Matinee @ 2.30pm

Special IBOA Price: €19 per ticketMembers are restricted to a maximum of six tickets each

Booking form available for downloadat www.iboa.ie/services/eventsdiary

Book online at www.iboa.ie/services/eventsdiary or www.iboa.org.uk/services/eventsdiary

MATINEE SOLD OUT –EVENING AVAILABLE

SOLD OUT

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Family TimeIBOA’s Family Zoo Days once again proved highly popular during the summer and autumn months. Tayto Park has now taken its place alongside Dublin and Belfast Zoos and Fota Wildlife Park near Cork as a firm favourite with our members and their families. In total 2,245 adults and 2,365 children availed of free admis-sion to Dublin Zoo, with over 800 adults and children at Belfast Zoo; and 582 adults and 624 children at Fota. Meanwhile 1,325 tickets were bought for Tayto Park at a special discount price for IBOA members.

iboa events


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bank of ireland

Milestone deal o n pay and career prog ression

BANKNOTES

Members throughout Bank of Ireland Group have voted

to back a new pay deal negotiated between IBOA and the Bank’s senior management with the assis-tance of an independent mediator. Union General Secretary, Larry Broderick, has described the new pay and career framework as “an important milestone on the road to recovery within Irish banking – which also sets an important prece-dent for other financial institutions.” Following the outcome of the IBOA ballot, around 6,000 staff in Bank of Ireland Group will receive an increase of 1.75% this month, back-dated to July for 2014, with a further 2% increase due next month for 2015. Staff will also receive a once-off lump sum payment equivalent to 5% of their current salary – in recognition of their contribution to the Bank’s return to profitability this year. The framework agreed in Bank of Ireland after six months of in-tensive talks between management

and IBOA, will also provide an intelligible and consistent career path for all employees – with due recognition for relevant professional qualifications.

The Union’s objectives at the outset of the talks

• Clarity around employee roles and responsibilities;

• Clear and transparent career paths for all employees;

• Proper recognition and reward for professional qualifications;

• Recognition of the employees’ contribution to the Bank’s recovery and acknowledgment of employees’ entitlements; and

• Appropriate framework for remuneration of members now and into the future.

The 2015 IBOA Member’s Diary is mailed directly to all members at their home addresses with this issue of Spectrum.

Pensioner and associate members may apply for a diary from Jane Higgins, Administration Manager, IBOA House, Stephen Street Upper,Dublin 8 on 01-4755908 (from ROI) or 02890-200130 (from NI & GB) or [email protected]

IBOA Diary 2015

Key Elements of the New Agreement

PayFor all staff in employment on December 1, 2014:– 1.75% pay rise with effect from December 1, 2014 backdated to July 1 2014; and– a further 2% pay rise with effect from January 1 2015.

Lump Sum PaymentA lump sum payment equivalent to 5% of annual salary in recognition of sacrifices made by members over the last six years and to facilitate the introduction of a new Career and Reward Framework for the future.

Rewards for QualificationsThe attainment of certain professional qualifications will be recognised through specific adjustments to salary.

New Career Framework & Band StructureA new Career Framework with new minima and maxima will replace over 360 existing pay scales. During 2015 all members will be migrated to the appro-priate new bands with a potential to progress further. Management has reassured IBOA that all our members’ terms and conditions of employment will be protected.

Future PayIBOA will negotiate with management on an annual basis for cost of living increases as well as perfor-mance-related awards.

ReassuranceManagement has given an assurance that everyone in Bank of Ireland will have a place in the new structure and all existing agreements with IBOA – including those relating to job security – will continue.

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Milestone deal o n pay and career prog ression

danske bank

BANKNOTES

THE POWER OFAt this crucial period in the history of Irish banking, it is vital that the independent voice of finance workersis as strong as possible.

In order to improve our bargaining power in the crucialnegotiations – with employers, government and regulatoryauthorities – it is essential that we all continue to build IBOA The Finance Union by encouraging our colleagues to join. Many members are already taking the time to do this.

As a token of our appreciation for these efforts, the Union isoffering a shopping voucher worth €50 or £35 to any memberswho signs up three new members to IBOA. It’s a win-win for you:a nice reward and a stronger Union.

For more information, contact Gareth Murphy at IBOA House by phone on 01-4755908 (from the Republic of Ireland) or 02890-200130 (from Northern Ireland or Britain) or e-mail: [email protected]

It also includes very clear bargaining arrangements through which future remuneration will be determined from 2016 onwards. “Now that Irish banking has at last been stabilised after the wide- scale restructuring since the financial crisis, it is timely that we begin to look to the future,” said the IBOA leader. “With many new roles and responsibilities emerging and significant recasting of existing functions, it is important that this changing environment is reflected in our members’ career structures and the accompanying rewards. “This decision marks a new beginning – rather than the end – of our negotiations with the Bank on this issue – since the migration of staff from the plethora of exist–ing grades and scales to the new simplified bands will be negotiated between IBOA and management during the early part of 2015 before talks on pay for 2016 begin towards the end of the year.

Danske Bank’s senior management outlined plans for a total of seven branch closures

in three separate announcements since the summer. Branches in Cregagh Road, Belfast; Shankill Road, Belfast; Dungiven; Holywood; Kircubbin; Lisnaskea and Maghera are the latest Danske locations to close their doors in Northern Ireland. Danske management has assured IBOA that no redundancies will result from these closures – as staff are to be redeployed elsewhere within the Bank. The Union has also sought details of man-agement’s plans for retail banking in 2015-16 as soon as they are finalised. After the latest closures have been com-pleted, Danske Bank’s branch network in Northern Ireland will have been halved in

eleven years – from 95 in 2003 to 47 by the end of 2014. “While we welcome the fact that all staff affected by these closures will be redeployed within the Bank, we remain concerned about the continuing trend of branch closures in Irish banking,” said IBOA General Secretary, Larry Broderick. “Independent research suggests that cus-tomers wish to retain the option of interacting with human beings in branches as well as cyber- banking online or by mobile phone. “Banking through the Post Office is not really an effective substitute since customers are unlikely to have easy access to qualified or experienced financial advisers,” he added.

The role of the Post Office in delivering banking service is discussed further on page 18.

Seven more branch closures in Danske Bank

New upskillingprogramme agreedA new upskilling programme is to be introduced for some branch-based customer advisers in Danske Bank which will provide opportunities for further professional development, recogni-tion and reward – including a potential salary increase of up to 5%.

Lisnaskea Branch


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ulster bank

Union General Secretary, Larry Broderick, back-ing wider engage-ment in AIB

BANKNOTES

IBOA’s SeniorIndustrial Relations Officer, GerryHanna

Ulster Bank Chief Executive, Jim Brown.

“The planned closures are not in the interests of customers or staff,” said IBOA General Secretary, Larry Broderick, “especially considering that the Bank has now returned to profitability – with positive results in each of the first three quarters of this year.” This latest announcement comes in the wake of 16 branch closures in Northern Ireland since the summer of 2013 along with 21 locations in the Republic. While no job losses are antici-pated from the closures in Northern Ireland, the Bank’s senior manage-ment has indicated that 47 job losses would be sought as a result of the closures in the Republic. “Job losses are never welcome – especially at a time of high unem-ployment,” said the Union leader. “However, we note management’s commitment to ensure that any job reductions will be implemented on a voluntary basis with no necessity for compulsory redundancies.” Apart from raising issues about the alternative arrangements to be put in place for customers in the affected areas, the Union wants Ulster Bank’s management to confirm that

the latest tranche of closures will be the last for the foreseeable future. “At the start of 2014, Ulster Bank Chief Executive, Jim Brown, said in an extensive media interview that he envisaged 39 branch closures across the Group over the next three years. If the latest proposals go ahead, it will take the number of locations – either already closed or earmarked for imminent closure – to 40,” said Broderick. “While we note the Bank’s com-mitment that no further closures are anticipated in 2015, we believe that if the Bank wishes to avoid heightened uncertainty for customers and staff in other branches as a result of this latest announcement, it should give a categorical assurance that no more branch closures are in the pipeline – at least until the end of 2016. “While IBOA is continuing in talks with management on a com-prehensive agreement on future change within Ulster Bank, we need greater clarity from management about its future intentions to ensure that the outcome of these negotia-tions offers the best possible solution for all of the Bank’s stakeholders – including staff and customers.”

Ulster Bank’s senior management has been asked by the Union to review its proposals to close ten more branches in Northern Ireland by the

end of February along with fourteen branches in the Republic by the end of the first quarter of 2015.

More closures s ought

Negotiations on pay at Ulster Bank

The Union’s Ulster Bank nego-tiating team – led by Senior

Industrial Relations Officer, Gerry Hanna, has been engaged in intensive negotiations with the bank’s senior management on the issue of pay. As we go to press, it appears that a set of proposals may emerge shortly. If that transpires, then the proposals will be put to our members in Ulster Bank to ballot for their final determination.

Engagement on restructuringcontinues

Union representatives continue to engage with the bank’s senior

management over the recom-mendation from the independent mediator, Mark Connaughton, SC, on a framework for restructuring in Ulster Bank. The Union has sought clarifica-tion on a number of points where the mediator has departed from the terms of earlier agreements – to the detriment of our members.

Lombard Ireland to transfer into Ulster Bank

Senior management at RBS subsidiary, Lombard Ireland, has

given the Union advance notice of its intention to transfer all of the company’s remaining business into Ulster Bank’s Asset Finance division. This development would result in the transfer of all staff to Ulster Bank under the relevant legislation. Management has given a com-mitment to full consultation with the Union. While preliminary discussions have begun, detailed arrangements – including transfer date(s) –have yet to emerge.

Ulster Bank’s branch at Gortin – where local residents are lobbying to reverse the closure plan (Photo: The Newsletter, Belfast)

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Talks on future pay and rewards have begun between IBOA and

AIB’s senior management after a framework was agreed in the wake of the announcement of positive half-yearly results for AIB Group showing a pre-tax profit of €437m. The discussions involve a fundamental review of employee rewards – taking account of a range of factors like the cost of living, progression within the bands, the Bank’s financial performance, pay increases elsewhere in the sector, performance management and other relevant considerations. “In view of the wide-ranging nature of these discussions, it is likely that they will continue into 2015,” said Senior Industrial Relations Officer, Billy Barrett.

BANKNOTES

aib group

Senior Industrial Relations Officer,

Billy Barrett

PLANNEDBRANCH CLOSURES

Northern IrelandThe ten branches earmarked for closure in Northern Ireland are Aughnacloy; Crumlin Road, Belfast; Donaghadee; Dundonald; Gortin; Newcastle; Newtown- hamilton; Portstewart; Randals- town and Tandragee. The five closures announced earlier this year for Northern Ireland were Lisburn Road and Lombard Street, Belfast; Finaghy; Rathcoole/Newtownabbey and Hillsborough.

Republic of IrelandIn the Republic the fourteen branches now under threat are Ashbourne; Athboy; Athy; Ballinrobe; Castleblayney; Castle- rea; Clones; Croom; Ferbane; Loughrea; Manorhamilton; Moville; Roscrea and Wicklow. The seven branch closures in the Republic announced earlier this year were Clane; South Mall, Cork; George’s Quay, Inchicore, and Kimmage, Dublin; Granard and Pearse Road, Sligo. Three sub-offices also closed in Clara, Co. Offaly; Enfield, Co. Meath and Lifford, Co. Donegal.

More closures s ought Pay talks under way in AIB

Up to 100 job losses likely in AIB GB restructure

Management in AIB (GB) has announced plans to restruc-

ture its operations in Britain with up to 100 voluntary-led job losses in 2015. Under the plan, the Wolver- hampton branch is to close – while staffing levels elsewhere in the branch network will fall. Management has pledged to consult fully with IBOA and to apply the terms of last year’s recommen-dations from the Labour Court and Labour Relations Commission.

FPCs accept Labour Courtrecommendationon functional cars

The Labour Court’s final recommendation on a proposal

by AIB management to remove functional cars from Financial Planning Consultants was accepted by our members in a ballot. Senior Industrial Relations Officer, Billy Barrett, said that the Union had exhausted the industrial relations process – since the proposal was first mooted over a year ago – in its efforts to secure an acceptable outcome. “Although what emerged from the Court was clearly not our preferred solution, the recom-mendation has delivered the best result that could be achieved under the circumstances.”

Engagement at AIBEfforts to enhance the quality of engagement between AIB management and the Union have continued throughout 2014 – in line with the wide-ranging recommendations of the Labour Relations Commission and Labour Court in 2013. New arrangements are being developed which will include structures to ensure that workplace issues can be resolved in a timely and satisfactory by Union representatives dealing directly with local management. A formal announcement of these new arrange-ments is anticipated in the near future.

Ulster Bank’s branch at Gortin – where local residents are lobbying to reverse the closure plan (Photo: The Newsletter, Belfast) Photo: Sasko Lazarov, Photocall-Ireland)


32

This year the Union’s annual charitable donations are being

given to three children’s hospitals – Temple Street Hospital in Dublin, the Royal Belfast Hospital for Sick Children and Great Ormond Street Hospital in London. “Christmas is always a difficult time to be ill,” said Honorary Finance Officer, Sharon McAuley, “but for children it is especially tough. “So this year the Union has decided to support three children’s hospitals in each of the main jurisdictions where IBOA is active. “We are pleased to be able to donate €4,500 to Temple Street, £3,500 to the Royal in Belfast and £2,000 to Great Ormond Street – as a token of our appreciation of the tremendous work done by the medical staff and all the support staff in these hospitals in caring for some of our most vulnerable citizens.”

A helping hand for sick children from IBOA

The year-long struggle of our members in the Irish Bank Resolution Corporation (IBRC) to secure fairer severance compensation was

rewarded with a special loyalty payment based on service – rather than earnings – so that the payments were weighted to favour staff on lower earnings. The deal was brokered by independent mediator, Kieran Mulvey, of the Labour Relations Commission. The IBRC workers’ campaign began in February 2013 when their previous redundancy arrangements were uni- laterally set aside as the company entered into “special liquidation” at the behest of the Irish Parliament – leaving staff with only statutory redundancy terms and effectively cutting their severance payments by at least half. Though relatively few in number and working for one of the “most broken banks in the world,” our members nevertheless maintained pressure on key political representatives in both the Republic of Ireland and Northern Ireland – garnering support from many of their non-union work colleagues along the way. The lobbying effort included e-mails and letters facilitated by the IBOA web-sites – as well as face-to-face meetings with politicians in their constituencies and in Parliament.

Through their sustained efforts over many months, the IBRC workers refused to allow the issue to die. Even when their plight no longer featured in the media, the workers ensured that the pursuit of a fairer deal remained a live political issue. In this way they ensured that when the opportunity arose, the Union was in a position to push for a resolution with the mediator, the Government and the special liquidator. “While I have expressed our grat-itude for the patience and creativity of the mediator, Kieran Mulvey, our members in IBRC deserve special com-mendation for their determination, their discipline and their profession-alism throughout this difficult time,” said General Secretary, Larry Broderick. “Their exemplary commitment was rewarded with proposals that were over- whelmingly accepted in a ballot,” he said.

Against the oddsIBRC workers win new settlement

The statue of Queen Maeve outside the IBRC head office in Burlington Road, Dublin (Photo Mark Stedman Photocall Ireland).

CREDITLINE

ibrc

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SPECSAPPEALFORIBOAMEMBERS

€30 off glasses from the €149 range or abovein the Irish Republic

£20 off glasses from the £99 range or above in Great Britain and Northern Ireland

For your SpecSavers discount voucher, call0(0-353-)1-4755908 or 0(0-44-)2890-200130

She also devoted considerable resources and time to identifying and winning the trust of the natural leaders in each workplace (even individuals who were non-union or even anti-union at the start). She also opened up the collective bargaining process in new democratic and participatory ways. Bucking the trend of declining union density in the private sector, her local union branch organisation grew in numbers, in negotiating strength and in political influence establishing new

standards in working conditions for healthcare workers across the US. Jane’s unique insights were shared recently with organisers and activists from IBOA, the Communication Workers’ Union and Mandate over two days recently during a visit to Dublin. Her inspirational contributions pro-voked excellent feedback – leaving the participants even more committed to strengthening the union in the work-place in order to make a positive and lasting difference for members.

McAlevey fought and won some of the best union contracts for private sector nurses in some of the most anti- union States in the US. Her modus operandi was simple: talk to workers, organise workers and lead workers into struggle. But it was in her innovative tactics and techniques that she showed real creativity and ingenuity. She developed sophisticated matrices for evaluating the strength of union organisation in the workplace.

Raising standardsRaising Expectations (and Raising

Hell) is the title of Jane McAlevey’s debut autobiographical account of union organising as the former National Organiser of the SEIU’s Healthcare Division in the US. A second account is to follow soon and is much anticipated by or-ganisers from the trade union and community sectors and anyone working to improve the lives of working people.

by Gareth Murphy,

Lead Organiser

IBOA

Pictured right: Gareth Murphy (left) with US trade union organiser, Jane McAlevey.

The General Secretary of the Irish Congress of Trade Unions,

David Begg, has decided to retire from the post in March 2015. Begg’s impending departure had been public knowledge since July 2013 when he advised delegates attending ICTU’s Biennial Delegate Conference ((BDC) in Belfast that the assembly would be his last as General Secretary. The only question was the timing of his retirement. And with the next Congress BDC scheduled for July 2015, Begg has decided to step aside to allow his suc-cessor three months to “settle in” before taking centre stage at the Conference. The fifth ICTU General Secretary, Begg has occupied the position since 2001 when he succeeded Peter Cassells. The ICTU’s General Purposes’ Committee – the officer board of Congress – has been tasked with man-aging the process to find a replacement.

Begg set to retire

CREDITLINE

organisation


34

FOREIGNEXCHANGE

worldview

Building the Union by improving participation and recruiting more members is vital toincrease IBOA’s bargaining power with individual employers and with governments andregulators. So we would like to invite you to volunteer to become a Member Organiser in your area.

As a volunteer Member Organiser, you will receive training and support from the Union’s Organising Unit to enable you to:• profile your workplace;• engage with members and non-members; and• ultimately build the Union’s strength in your area.You will also be able to participate in the Member Organisers’ incentive scheme – which will recognise your efforts in tangible ways.

Not only is this a great development opportunity for you to become more involved in the Union – but it will also assist the Union to meet the many challenges facing our members.

For more information, please contact our Lead Organiser, Gareth Murphy in IBOA House or by e-mailing [email protected]

Be a Member Organiser for IBOA!

Human rights groups and unions campaigning to hold Qatar to account for the mistreatment of the migrant workforce in the country said these con-cerns had been ignored by FIFA. Global union confederation, ITUC, has warned that 4,000 workers – mainly migrant labour – could die building the infrastructure for the event to be hosted by Qatar in 2022. Stephen Russell, writing in the British TUC’s Stronger Unions blog, noted that the emphasis on corruption was a diversion. “On the other hand, we have full, corroborated proof that hundreds of migrant workers return home in body bags, despite the best efforts of the

Qatari regime to prevent the plight of migrant workers being revealed,” he said, calling for a reform of the country’s labour laws. Steve Murphy, General Secretary of construction union, UCATT, said the FIFA report “is a disgrace and sickens me that FIFA has spent their entire time navel gazing and looking at their own bidding process, when the real issue is the terrible way in which migrant con-struction workers are being exploited in Qatar.” A new report from Amnesty Inter-national concludes Qatar’s authorities “are lagging severely behind on efforts to address the rampant abuse of migrant workers’ rights.”

FIFA overlooks migrant deaths and abuseUnions have condemned a report of a FIFA investigation into the

selection of Qatar to host the 2022 World Cup that concluded there were only minor concerns that “were not serious enough to warrant re-opening the process.”

EU Commission imposes €93.9m fine on four banks

The European Commission has imposed €93.9 m ($120m) fine

on four major financial institu-tions – RBS, UBS, JP Morgan and Crédit Suisse – for manipulation of interest rates through illegal cartels. JP Morgan received the largest fine €62m ($79m) for manipulating Swiss franc Libor benchmark interest rate in an “illegal bilateral cartel” with the Royal Bank of Scotland (RBS). RBS managed to avoid penalties of €110m as it acted as the whistle-blower before the Commission. UBS has been fined €12.7m while Credit Suisse have to pay €9.2m for engaging in the cartel with JP Morgan. As the four banks agreed to settle the case with the Commission, they secured a 10% reduction.

Joaquín Almunia (above) EU Commission vice- president in charge of competition policy said: “Unlike in previous cartels we found in the financial sector, this one did not involve any collusion on a benchmark. Rather, the four banks agreed on an element of the price of certain financial derivatives. “This way, the banks involved could flout the market at their competitors’ expense. Cartels in the financial sector, whatever form they take, will not be tolerated.”

35


FOREIGNEXCHANGE

Members of New Zealand’s First Union, employed by ANZ

Bank, engaged in two one-day stoppages recently to highlight their outright opposition to the latest proposals from the Bank’s senior management after a series of members’ meetings had recorded a massive 96% vote for rejection. First Union – which represents around 1,300 ANZ workers – is currently in negotiations with the bank over a renewed employment agreement. A central concern for the workers is management’s proposal for more ‘flexibility’ that would leave staff with no regular work pattern or set starting and finish times from one month to the next, according to Maxine Gay, First Union’s Retail and Finance Secretary. She said predictable hours were essential for a secure family life. She said ANZ management should show its workers more respect. A big rise in profits at the bank should be reflected in a better pay offer and more security around hours of work. Statutory profit at ANZ Bank’s New Zealand operations have risen by nearly 25% from $1.37 bn last year to $1.71 bn.

NZ bank workers smell a ratStoppage highlights derisory offer from ANZ bank

“We note (ANZ) CEO David Hisco’s comment that this extraordinary profit “has been driven off the back of a highly engaged workforce,” said Gay. “That highly engaged workforce deserves a better deal than a pay offer which is well below what other major banks have settled on this year.” Contact centre and back office workers employed before September 2010 are being offered a 2% wage in-crease for each of the two years – while other staff are to receive increases of 3% and 2.75%. Earlier this year, workers at Westpac, ANZ’s main rival, achieved a 3.4% increase for each of the two years. “ANZ have been busy telling the public they only want a few people in some branches on unpredictable and changing hours,” said Gay. “However that’s not what they’re demanding over the bargaining table. If that’s what they say they want, then let’s see an offer that reflects that.” First member, Helen Packwood, said that management’s proposal for more flexible staff contracts and annual pay increases of just 2.75% to 3% were not good enough. She said the offer of an annual pay rise of up to 3% pales next to CEO, David Hisco’s own pay rise. With a 2013 salary of $4.1m, up 14% from 2012, Hisco is the highest paid executive in New Zealand. “How can you get a 14% pay rise and give us a 3% pay rise?,” asked Helen Packwood. “And you’re already on $4.1m per year. I mean, come on - share the love, David, share the love!”

Above: the star of the picket at the bank’s head office in Wellington was a giant inflatable rat. Many of the strikers also wore masks of ANZ Bank CEO, David Hisco, and carried placards urging him to “come live in our world” – in a parody of the bank’s slogan: “We live in your world.”

European banking job numbers fall furtherStaff numbers in Europe’s biggest lenders fell by a further 1.2% in the first half of the year, according to data compiled by Reuters, with little prospect of an upturn any time soon. Analysis of figures for 25 of Europe’s 30 largest listed banks reveals that headcount fell at sixteen during the first six months of 2014. Although the other nine reported increases in staff, there was a net loss of 21,135 jobs across the 25 banks.

Bank of Holy Spirit …moves in mysterious waysThe EU Commission has approved the multi-billion-euro State resolution plan for the troubled Portuguese lender Banco Espirito Santo (BES). Proposed by Banco de Portugal, the €4.9bn rescue plan includes split-ting BES into ‘bad’ and ‘good’ banks, while protecting depositors and other clients.

BoA faces mortgage business penaltiesA New York State judge has levied penalties of $1.3bn on Bank of America (BoA) for fraud over a loan production programme by its Countrywide Financial unit.

Citi reaches $7bn deal over sale of faulty mortgagesCitigroup has announced a $7bn deal with the US authorities to settle an investigation into its alleged sale of mortgage-backed securities in the run-up to the 2008 financial crisis. According to Reuters, Citi is to pay $4bn in cash to the US Justice Department, $2.5bn in consumer relief, as well as $900m more to resolve inquiries by five States as well as the Federal Deposit Insurance Corporation.


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safety feature

It’s your right to work in safety and security!

IBOA’s Safety, Health, Welfare and Security (SHWS) Committee

aims to work with members and employers to create healthier, safer working environments. IBOA has produced guidelines on your rights under health and safety legislation in the Republic and Northern Ireland. These can be accessed on the IBOA websites by following these links:• www.iboa.ie/knowyourrights/yourrightsroi/healthsafety.html for theRepublic of Ireland; and• www.iboa.org.uk/knowyour rights/yourrightsni.html for Northern Ireland. If you have any questions or con-cerns about health, safety or security in your workplace, please contact a member of your local health and safety committee in the first instance. If there is no health and safety committee in your workplace, please contact one of the following members of the Union’s National Committee: Łukasz Adasik (Bank of Ireland), Elaine Barker (Bank of Ireland), Carmel Curran (First Trust Bank), Paul Gilmartin (AIB), Eileen Gorman (Danske Bank), Paul Harty (Bank of Ireland), John Keaney (Bank of Ireland), Jaynette Stirling (UBG-NI), Kate Varley (AIB) or Billy Barrett, IBOA’s Senior Industrial Relations Officer. You can contact the Committee by e-mail at [email protected] or by phone at 00-353-(0)1-4755908 or 00-44-(0)2890-200130.

The guide aims to ensure that workers undergoing treatment or returning to the workplace after treat-ment receive all the necessary help and support in terms of time off and work arrangements. According to Congress Legal Affairs Officer, Esther Lynch, who prepared the guide – with support from the Irish Nurses and Midwives’ Organisation and SIPTU’s health division – the aim of the publication was to assist workers and their unions to negotiate Time off Work Plans (TWPs) that minimise the financial impact of taking time off for treatment and recovery. “We now know that there is life during and after cancer and the guide will hopefully make that experience a better one for those undergoing treatment. “Help from the union to negotiate the necessary time off can make all the difference. An agreed TWP can be of enormous help. Every person’s situation is unique – but we know that workers want more control and flexibility in how they take time off for treatment and recovery and more can be done to support workers when they return to work.” ICTU General Secretary David Begg added: “In Ireland more than seven women a day are diagnosed with breast cancer and this condition can also affect men, but to a lesser degree. “Even a decade ago, we wouldn’t be having conversations about people returning to work after treatment, even less about how we could best adapt their working environment after treatment. “There is still a long way to go. But this represents significant success for unions which have long campaigned for better treatment and screening for people affected in this way.”

New ICTU guide to assist workers with breast cancerThe Irish Congress of Trade Unions has launched a

new guide on how best to assist workers diagnosed with breast cancer and other serious illnesses, during their treatment, recovery and return to work.

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LIFECOVER

If they lack knowledge or under-standing about a disability or mental health condition, employers and co-workers may have fears and concerns. Unfortunately, that lack of knowledge or understanding can manifest as

prejudice or bias against employees with disabilities, including employees with experience of mental health difficulties. As part of the European Week for Safety and Health at Work, Congress

Research by the EU Agency for Safety and Health at Work indicates that 10% of work-relatedillness is stress- related – costing EU employers an estimated €20bn a year. Over 40% of employers consider psychosocial risks more difficult to manage than ‘traditional’ risks. The primary obstacles cited by employers are ‘the sensitivity of the issue’ and ‘lack of expertise.’

According to the Republic’s Equality Authority the greatest barrier that employees and potential employees with experience of mental health

difficulties encounter is the attitudes that others have towards mental health difficulties.

Mental health is key concern at work

Congress workplace safety seminar hears that:

Pictured at the Congress seminar on mental health – which was held in IBOA House recently – were (from left) Dil Wickremasinghe, Frank Vaughan, Emily Logan, Kahlil Thompson Coyle, Ciara Miley, David Joyce, Sally Anne Kinahan and Brenda O’Brien.

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recently organised a seminar in con-junction with the Republic’s Health and Safety Authority, to increase aware-ness among trade union officials and activists of the issues arising from mental health and to begin mapping the supports, training and guidelines that unions need to support members who experience these issues. Chairing proceedings, broadcaster, Dil Wickremasinghe, said that “the workplace is the final frontier in our journey towards breaking down stigma in Ireland. “Conversations are happening around kitchen tables, in classrooms, in communities, at national level in the corridors of power and in the media. “However, for a long time I have been very aware at the lack of con-versations about mental health in the workplace,” she said. “Is it any wonder as the recession has made people very wary about letting their mask slip and showing their vul-nerability at work. However, stigma in the workplace existed way before the recession but it just got worse as the re-cession brought the fear of losing one’s job and livelihood.” Among the other contributors to the seminar were Brenda O’Brien of the European Agency for Safety and Health at Work; Emily Logan recently appointed as Chief Commissioner of the Irish Human Rights and Equality Commission (which has taken over the role of the Equality Authority); Ciara Miley from See Change, Patricia Murray from the Health and Safety Authority; and Kahlil Thompson Coyle, from the National Office of Suicide Prevention. Sally Anne Kinahan from Congress offered a trade union perspective on the issues.

safety feature


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Though widely acclaimed as one of the best defenders in Gaelic Football, Higgins was surprised to receive a third All Star award in a row when named at left corner- back in the All Star Team of the Year – since he believed his form this season was not at the level he had achieved in 2013. While neutral observers may disagree with him about the quality of his performances, there can be little doubt that in a team sport – the performance of the collective is bound to have a huge bearing on a player’s assessment of his own achievements. After securing their fourth Connacht title in a row, Mayo had

great expectations heading into the semi-final with Kerry. Two titanic games ensued – each requiring extra time – before Kerry edged into the final where they beat Donegal for the title. The narrowness of their defeat to the eventual champions left many Mayo players and supporters won-dering about what might have been with the one that got away. The decision of Mayo manager, James Horan, to step down after the loss to Kerry added to the general air of disappointment in the county. For a player who has received so much personal acclaim, it is a little surprising to discover that football is not really his favourite

game. Hurling is Keith’s first love. But, as Mayo is traditionally, a foot-balling county, there are very few opportunities to play regularly at the highest level. However, while still an Under 21, Higgins was selected to play on the Galway-dominated Connacht team which won the Railway Cup interprovincial series in 2005. And when his football schedule allows, Keith continues to turn out with the hurlers at his club, Bally-haunis – winning seven county titles. And earlier this year, he com-pleted a Railway Cup double – with Connacht’s footballers – to become the first Mayo player to win dual titles in both hurling and football.

THE PRIDE OFBALLYHAUNIS

Three timesan All Star

IBOA member, Keith Higgins, recently became the first Mayo footballer to win three GAA-GPA All-Star awards. However, the Ballyhaunis native – who works for Bank of Ireland in Castlebar – regards

the 2014 season as a failure because Mayo fell short in the pulsating All-Ireland semi-final clashes with Kerry.

game time

FOOTBALL

3 GAA-GPA All Stars Awards (2012, 2013, 2014)

6Connacht Senior Football Championships (2006, 2009,

2011, 2012, 2013, 2014)

1Connacht Under-21 Football Championship (2006)

1All-Ireland Under-21 Football Championship (2006)

1Railway Cup title (2014)

1Sigerson Cup title (2005)

1GPA All Star Young Footballer of the Year (2006)

HURLING

1All-Ireland Junior Hurling Championship (2003)

1Connacht Junior Hurling Championship (2003)

1National Hurling League Division 3 title (2005)

1Railway Cup title (2005)

1Christy Ring Cup All Star (2008)

Career Honours

SOME OTHER RECENT IBOA ALL-STARS

Colm Cooper Kieran Donaghy Brendan Cummins Seán Óg Ó hAilpín

All photos by Inpho: Higgins (above) and Ó hAilpín by James Crosbie; Cooper and Donaghy by Morgan Treacy; and Cummins by Donall Farmer.

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Valid at over 200 cinemas in the UKand Ireland

SPECIAL OFFER FOR IBOA MEMBERSIC Cinema Tickets

Republic of Ireland: Adult €6.80 Child €4.60Northern Ireland and Great Britain (excluding London): Adult £4.60 Child £3.65

London: Adult £7.00 Child £4.50

The majority of people living in the UK and Ireland are no more than 20 minutes awayfrom one of the participating cinemas. For the full list, see www.iccinema.co.uk/

IC Cinema Tickets can be ordered by phone at 00-353-1-4755908 or 00-44-2890-200130

cinematique

The third instalment of Peter Jackson’s movie adaptation of

Tolkein’s classic fantasy, provides an epic finale to the adventures of Bilbo Baggins, Thorin Oakenshield and the Company of Dwarves. Due for general release next month – just in time for the Christmas holidays – The Hobbit: The Battle of the Five Armies, is the concluding part of Jackson’s labour of love. The Dwarves of Erebor have reclaimed the vast wealth of their home- land, but now must face the consequences of having unleashed the terrifying Dragon, Smaug, upon the defenceless men, women and children of Lake-town.

As he succumbs to dragon-sickness, the King Under the Mountain, Thorin Oakenshield, sacrifices friendship and honour in his search for the legendary Arkenstone. Unable to help Thorin see reason, Bilbo is driven to make a desperate and dangerous choice, not knowing that even greater perils lie ahead. An ancient enemy has returned to Middle-earth. Sauron, the Dark Lord, has launched legions of Orcs in a stealth attack on the Lonely Mountain.

The finalchapterHobbit trilogy reaches epic final

Above: Sir Ian McKellen (left) as Gandalf and Cate Blanchett as Galadriel in Peter Jackson’s The Hobbit: The Battle of the Five Armies

As darkness converges on their escalating conflict, the races of Dwarves, Elves and Men must make a choice – either unite or be destroyed. Bilbo finds himself fighting for his life and the lives of his friends as five great armies go to war. Stars of the final film include con-tinuing cast members, Martin Freeman, Richard Armitage, Sir Ian McKellen, Cate Blanchett, Elijah Wood, Orlando Bloom, Evangeline Lily and Benedict Cumberbatch while Billy Connolly also makes an appearance.


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cinematique

The Guarantee

In an attempt to understand how the interplay between the economic forces and the individuals personalities pro-duced the guarantee, journalist Colin Murphy conceived the play, Guaranteed, which was staged to great acclaim by the Fishamble Theatre Company – having originally been conceived as a short piece for Fishamble’s Tiny Plays for Ireland season. Energised by the publication of the Anglo Tapes in the Irish Independent, the audience response to the play – which included a lengthy question-and-answer session after each performance – was so intense that former Irish Film Censor and screen producer, John Kelleher, concluded that Murphy was tapping into something important. With support from the Irish Film Board, TV3 and the Broadcasting Authority of Ireland, Kelleher set about the task of bringing Murphy’s account to film and television audiences. With ex-perienced director, Ian Power, assisting Murphy in expanding his theatrical ap-

proach into a more cinematic sensibility. However, the film retains some elements – more typical of the theatre – like some of the actors playing more than one role – which may be confusing for some viewers. While it is possible that this choice was dictated by budg-etary considerations, it could equally be argued that the use of actors in more than one role was designed to symbolise the overlap between the Anglo bosses, the regulator and the Government. Peter Coonan (Fran in RTÉ Television’s Love/Hate) plays David Drumm with Morgan Jones as Seánie Fitzpatrick. David Murray plays the role of Finance Minister Brian Lenihan – sincerely trying to do his best despite being out of his depth in financial terms, while Gary Lydon’s portrayal of the then Taoiseach, Brian Cowen, is based almost entirely on caricature – rather than on attempt at documentary realism. Anyone who missed the cinema showing should have an opportunity to see it on TV3 in the near future.

The film, Inez – A Challenging Woman, grew out of an inter-

view Inez McCormack gave to her friend, journalist Susan McKay, in October 2012 shortly after learning that she had inoperable cancer and just a few months to live. One of Ireland’s leading trade unionists and human rights cam-paigners, Inez died in February 2013. The core of this moving and thought-provoking film is Inez’s final interview in which she reflects on her life, her achievements, and her regrets, as she contemplates her untimely death. But as Susan McKay explains, Inez’s approach to the interview was not to close the book on her life – but to con-tinue to do what she had always done: to challenge those in authority and encourage others to carry the struggle forward. Born into a conservative Protestant home in Holywood, County Down, Inez became one of the most dynamic union officials in modern Irish history. She became a champion of the working class women who had formerly largely been ignored by the trade union movement and was elected the first female President of the Irish Congress of Trade Unions (ICTU). In 1998 she played a pivotal role in persuading people from some of the

INEZ:Bailed out:Peter Coonan as David Drumm and and Morgan Jones as Seán FitzPatrick in The Guarantee.

Six years ago the impending collapse of the “systemically important” Anglo Irish Bank led the Government of the day in the Republic to

guarantee the bank’s holdings along with its domestic competitors. Those events set in train a chain reaction of austerity involving tax hikes, spending cuts, pay freezes and worse – taking on an almost mythical quality bordering on the surreal.

Journalist and screenwriter, Colin Murphy

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most divided communities in Northern Ireland to support the Good Friday Agreement by insisting that equality and human rights should be at the heart of the accord. In 1968, Inez left home intent upon seeing the world. She had got as far as London when, in a bar, she met the man she would spend her life with, Vincent McCormack, a student from Derry’s Bogside. Together they took part in the anti-Vietnam riots at the American Embassy in Grosvenor Square, and set off to hitch around Europe. However, on seeing newspaper coverage in Portugal of events in Derry in October 1968, they knew they had to return home. They became ardent members of People’s Democracy and the Civil Rights movement. As her friend Michael Farrell – a student leader at the time and now a human rights lawyer, – says in the film, by taking a stand Inez cut herself off from her community and her family. On one march, she and a cousin who was a policeman encountered each other but looked away. Inez talks in the film about how that “summer of love” turned her into a passionate campaigner for the rights of the most marginalized people in society. But she did not speak for them – she encouraged and empowered them to speak out for themselves.

Fresh out of college, she became a social worker in West Belfast, and found herself working with people experiencing some of the worst deprivation in western Europe. When her bosses threatened to close the office, Inez turned to her union for help. Within a few years she was a full-time union official organising hun-dreds of low paid women as members of NUPE (now UNISON) and inspiring them to action. A talented and effective leader, Inez was also an instinctive strategist. She knew that to bring about social change, she needed to build alliances and net-works. Over a career lasting almost 50 years, she gained the support of some of the most powerful people in the world for campaigns for the rights of some of the most powerless. Yet her courage came with a cost. “There is no joy in being the first woman in anything,” she says, reflecting on how she dealt with the abuse in public life without getting destroyed or bitter. She reveals that when as a signatory to the MacBride Principles, she cam-paigned for US companies to ensure fair employment practices in their opera-tions in Northern Ireland, she and her family were subjected to intimidation and threats at home. Inez also founded the remarkable organisation, PPR – Participation and Practice of Rights – in Northern Ireland

which works with marginalised com-munities and groups to enable them to participate in economic and social decision-making in order to improve the quality of their lives. The work of PPR – which has achieved international recognition has been described by Mary Robinson as “ground-breaking.” Inez: A Challenging Woman features interviews with her widower, Vincent, along with President Michael D Higgins and former President Mary Robinson. Rosaleen Davidson, who first met Inez when she was a domestic worker in Belfast’s Royal Victoria Hospital, speaks of her inspirational leadership. Former US Secretary of State Hillary Clinton tells of Inez challenging her while she was First Lady, with the mem-orable question “Who’s not at the table?” Meryl Streep, who played Inez in the theatrical production, Seven, also pays tribute to Inez as a “towering figure.” The 32-minute film also features a wealth of freshly discovered archive material, including Inez speaking to the New York State Legislature and appearing at the first ICTU women’s conference. Produced and narrated by Susan McKay, and directed by Trevor Birney and Eimhear O’Neill, the film won the Best Short Documentary Award at the recent Galway Film Fleadh – and has been acquired by BBC Northern Ireland for broadcast in the near future.

FIXEDINTEREST

cinematique

A Challenging Woman

Journalist, Susan McKay, who is now Director of the National Women’s Council of Ireland

Top left: union leader and human rights activist, Inez McCormack

Top right: (from left) Hilary Clinton, Inez McCormack and Meryl Streep in New York at a performance of Seven – in which Inez was played by the Oscar-winning actress.


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PREVIOUS SOLUTIONAcross: 1. Friends; 5. Forever; 10. Ross; 11. Vaudeville; 12. Stolen;13. Dietetic; 14. Broadway; 16. Smash; 17. Swede; 19. Contusion; 24. Innocent; 25. Rachel; 27. Toleration; 28. Rota; 29. Regards; 30. Goodbye.

Down: 2. Rooster; 3. Easel; 4. Divined; 6. Opened; 7. Epidermis; 8. Eclairs; 9. Tundra; 15. Andromeda; 18. Winsome; 20. Obtain; 21. Toronto; 22. Overtly; 23. Reward; 26. Cured

The winner of the compeititon in the previous issue was Deirdre Twomey of Blessington, Co. Wicklow – who successfully negotiated the glitch in 14 Across.

A prize of €50 will be awarded to the first entry drawn from our post bag after the closing date.

ACROSS1. Large Egyptian tomb (7)5. Retailing (7)10. Old (4)11. Travel guides (10)12. Speculation (6)13. Knight of Round Table (8)14. Present (9)16. Chasm (5)17. Farm animals (5)19. Entrance (9)24. Limbs of large plants (8)25. Baked item (6)27. Lack of regard (10)28. Egg-shaped (4)29. Domestic fowl (7)30. Slang for prison (7)

DOWN2. Foodstuff usually made from curdled milk (7)3. Film sound (5)4. Was unaware of (7)6. Motor (6)7. Waste receptacle (6,3)8. On edge (7)9. ______ Waugh, author (6)15. Unconventional (9)18. Besmirch (7)20. Response (6)21. Upper case (7)22. Large paved area – usually involving split levels (7)23. Pure (6)26. Violent commotion (5)

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A prize of €50 will be given to the sender of the first correct entry drawn from our post bag on January 16, 2015. Entries should be sent to Crossword, Spectrum, IBOA The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. A photocopy of the grid is acceptable if you prefer not to cut up the magazine.

prize crossword

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9

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23

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27 28

29 30

10% of all products and services for IBOA members and their families.

For more information,check out the IBOAGroup Scheme inthe My IBOA sectionof the IBOA websites.

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Name …………………………………………………………

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2 3 4

5 6 7Use the first letter of the surnames of each of the seven celebrities pictured to spell out the surname of a famous literary figure. Answers on a post card, please, with your name, postal address, e-mail address and IBOA membership number to Picture Board, Spectrum, IBOA The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. A prize of E30 will be awarded to the sender of the first correct entry drawn from our post bag on January 16, 2015. The winner of the last Picture Board quiz was John Hanratty of Dundalk. The answers to the seven clues were McGrath, Anderson, Norton, Doherty, Elba, Lynott and Ahern - giving the name, Mandela.

A prize of €30 will be awarded to the sender of the first correct entry drawn from our post bag on January 16, 2015. All entries should be sent to Sudoku, Spectrum, IBOA The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. You can submit your entry on a photo copy of the grid – if you prefer not to cut up the magazine. The winning entry for the Sudoku Challenge in the last issue was submitted by Tony Clarke of Newtownards, Co. Down.

8 3 7 9

7 9 8 2

4 3 7 1

9 3

7 8 2

2 1

9 8 4 6

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picture board

sudoku


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In other circumstances, a first away defeat in three wouldn’t seem quite so bad. What makes this one more difficult to deal with is the fact that it was inflicted by the team most likely to be vying directly with Ireland for a place in the Finals in France. Put simply, for Ireland to qualify now, assuming Germany and Poland both do, they either have to end up with more points than Scotland overall, or ensure the defeat in Celtic Park is cancelled out by a home victory over the Scots in June. Unfortunately, the road immediately ahead is fraught with danger. Though the next two fixtures are at home – against Poland in March, and Scotland in June – they really are matches that must be won. But then, was that not always the case? Scotland’s victory has just made the focus that bit more sharp. With four rounds of matches now completed, Germany, Scotland and the Republic all sit together on seven points behind Poland who’ve already beaten Germany at home and lead the group with ten. Poland are the only unbeaten team so far. Scotland’s defeat came in Germany,

but significantly they have already drawn in Poland. I still believe the glass is half full. Straight after the Scottish disappointment, Martin O’Neill put out a com-pletely fresh team against the USA whose starting line-up featured nine players who had been in the squad that reached the last 16 in the Brazil World Cup. They more than held their own, and when McGeady and McClean, the two regular wingers, and then Shane Long were introduced, they consolidated and ran out comfortable winners in the end. The debut performances of Cyrus Christie at right back and in particular David McGoldrick, operating just behind the main striker will have encouraged the manager. Robbie Brady offered adventure from a new position at left back. Anthony Pilkington was the most impressive he’s been in his eight appear-ances. And Stephen Quinn enhanced his reputation in the squad. Much will happen between now and the next time O’Neill sits down to pick a team, but at least he knows where to turn if injuries deal him a poor hand again.

Reasons to be cheerfulOne: O’Neill – Two: O’Neill – Three: Schmidt

game time with george hamilton

Northern Ireland’s skipper, Steven Davis, bursts past Frodi Benjaminsen, his Faroe Island’s counterpart, at Windsor Park, Belfast in the recent Euro 2016 Championship qualifier. (Photo: INPHO/Presseye/Jonathan Porter).

It was Forrest Gump’s momma who always said that life is like a

box of chocolates, you never know what you’re gonna get. It’s been a bit like that with the Republic of Ireland recently. You can never be quite sure just what is going to turn up. So it is that they find themselves in danger of being cut adrift in their European Championship qualifying group just ninety minutes of football after achieving what few others are likely to in depriving the World Cup-winning Germans of two home points. Eaten bread is soon forgotten, they say. October’s mighty comeback in Gelsen-kirchen counts for little now as the four-month winter break unwinds, and there is ample time to reflect on the trouble in Paradise. Celtic Park lived up to its nickname if you’re a Scot, but for Martin O’Neill, in the visitors’ dressing room for the first time, it must have felt more like Purgatory. And it had all been going so well. The team had shown resilience in both its away fixtures, and all that was missing from the expected demolition of Gibraltar at the Aviva was a record in the scoring department (8-0 against Malta thirty-five years ago during Eoin Hand’s time as manager remains the high water mark). But then came a conspiracy of circumstances that cost the team dear. Glenn Whelan’s injury suffered during the Germany game – a misfortune whose consequences on that night in the Ruhr have not been fully acknowledged, for the hosts had failed to break down Ireland while he was on the pitch – hadn’t healed sufficiently in time for the visit to Glasgow. That coupled with the continuing absence of James McCarthy (who hasn’t played since the opening game in Georgia in September) left O’Neill short of options. Into the mix came Scotland’s recent form. Gordon Strachan had banished the tag of underachievers since taking over twenty-two months previously. Now with a settled side, Scotland had lost only once in nine outings, a narrow defeat in Germany. Whatever kind of row the ducks were in, it wasn’t one of Martin O’Neill’s construction.

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Ireland’s Jamie Heaslip outjumps Luke Jones of Australia in the recent Guinness Series test at the Aviva Stadium, Dublin (Photo: INPHO/James Crombie).

There’s also the intriguing possibility that the emergence of Christie, who has missed only one of Derby County’s matches in their march to the top of the English Championship, might persuade the manager to deploy Séamus Coleman further forward. And Martin O’Neill will not shirk the brave call when it comes to selection. The decision to leave Robbie Keane on the bench in Glasgow was the right one. By his own admission, Keane isn’t suited to the role of target man. O’Neill had to cut his cloth, and sadly it was somewhat threadbare. Keane would have been a luxury he couldn’t afford. That said, there’s a good nucleus now. But the game against the group leaders will be a real test – one that, if hopes of France the following summer are not to fade, cannot be failed. With the extended format for the European Finals in place, Northern Ireland were entertaining the serious ambition of progressing to a major championship for the first time since the World Cup in 1986. The cause has by no means been hindered by the abject

failure of the top seeds Greece to find any kind of form under Claudio Ranieri. A home defeat by the Faroes cost him his job after only four months in charge. By contrast, Michael O’Neill’s Green and White Army hit the ground running, making history by winning three qualifiers, something Northern Ireland had never been done before. Defeat in Romania – without their inspirational captain Steven Davis – was a setback. But their nine points from four games puts them second behind Romania in one of the qualifying places. Northern Ireland too must wait for March to see action again at home to Finland, whose only victory so far came in the Faroes. With Greece virtu-ally out of the running at this stage, that leaves just Hungary – already beaten by Northern Ireland in Budapest – in touching distance of Michael O’Neill’s team. Romania visit in June and if Northern Ireland can regain the momentum of their opening games in those two home fixtures, they’ll be well placed to claim one of the two automatic qualifying spots. Changed days indeed in Belfast.

By the time the island’s two foot-ball teams kick-off again, the RBS Six Nations trophy will have found a new home. Or will it? There’s every reason to believe it will be staying in Dublin. The Guinness Series that began with a first victory over South Africa since Croke Park in 2009 and ended in such thrilling cir-cumstances with the win over Australia that confirmed Ireland’s status as third in the world rankings and pushed the Wallabies down to fifth – as low as they have been since this benchmark was established in 2003 – gave Ireland its first autumn clean sweep in eight years. More importantly, it confirmed what’s been widely believed: that under Joe Schmidt’s management, this is as good an Ireland team as we’ve ever seen. Brian O’Driscoll may be gone, but Jonny Sexton is still there, and around him there is a galaxy of talent, from the ageless captain Paul O’Connell (is he really 35?) right through to the number 15, Rob Kearney. It can’t be overlooked either, that this hat-trick – Georgia were the other victims – was achieved without half a team, sidelined with injury. The Rugby Writers’ Player of the Year Andrew Trimble is still on crutches recovering from a toe problem. Cian Healy and Sean O’Brien were missing as well. So too Keith Earls, Fergus McFadden, and Donnacha Ryan. Add Dave Kearney and Luke Marshall to the list and you’ve an idea of the straitened circumstances in which Ireland had to perform. Perform they surely did, and if the nail-biting conclusion to the Australia match had the memory bank coughing up coinage of the last gasp capitulation to the All Blacks on the same weekend twelve months previously, then the outcome this time was highly significant. Not only can they take control of a game, as they did early on against Australia. Ireland can deal with the setback of a spirited comeback to rise again. And what’s more, they can seal the deal. This Ireland is never beaten. Conventional wisdom suggests that in the odd years the title is more winnable since there are no away games in London or Paris. Be that as it may, there is also the issue of form. Ireland have shown this autumn how good they are. The impression is building that – to use a phrase Paul O’Connell employed to much hilarity when accepting the Rugby Writers’ Team of the Year award on the squad’s behalf – Ireland are on the right trajectory. This is Irish rugby’s Golden Age. There is every reason to be cheerful.


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stephen malone

The cookiecrumbles…as Bank takes biscuit

It may not have an obvious connection with banking – but the humble cookie is part of Ulster Bank’s campaign to restore

its standing with the public. After the reputational damage that arose from the IT meltdown in the summer of 2012 – not to mention the ongoing speculation about the extent of the restructuring of the Bank’s branch network and other services – the Bank’s promotional team appears to have decided to “sweet-talk” the public with cookies. The biscuits form part of a bigger promotional effort as the Bank was the lead sponsor of the Belfast Arts Festival at Queens which ran from October 16 to November 1 and whose musical programme opened with the Ulster Orchestra and closed with the sensational traditional music group, The Gloaming.

T he employees of Ulster Bank must be hoping that their bosses’ decision to sponsor RTE Radio 1’s early evening news maga-

zine, Drivetime, is not a bad omen for the future of the financial institution in the Republic.

The curse of DrivetimeUlster Bank sponsors radio show

Drivetime’s most recent com-mercial sponsor was Danske Bank – which has disappeared as a retail presence in the Republic’s cities and towns and now operates instead as a niche lender in the corporate banking area. One of Danske’s Drivetime predecessors was the British-based multinational, HSBC – whose operations in the Republic employ around 400 staff focussed primarily on corporate banking, treasury and global markets. Such a specialised area of finance does not seem to be the most obvious fit for a prime-time daily radio show with a mass audience.

QUIDQUIPSBorrow money from a pessi- mist: they don’t expect it back.

– Anonymous

QUIDQUIPSYour man Noah was really quite the investor. Think about it: he succeeded in floating stock while every-thing around him went into liquidation.

– Anonymous

Mary Wilson, presenter of Drivetime on RTE Radio 1(Photo: Marc O’Sullivan)

FIFA President, Sepp Blatter

Assault and Blattery!

soccer bureaucrats – to announce that they have decided they are innocent of all charges of corrupt practices in the controversial decisions about the staging of the 2018 and 2022 World Cup tour-naments in Russia and Qatar respectively. Former New York District Attorney, Michael Garcia con-ducted the FIFA inquiry – which was limited in scope as a result of lack of co-operation by some of the main players. And of course, he has hotly disputed Blatter’s interpretation of his report. But Sepp is not only completely shameless – having recently de-clared that FIFA “has an exemplary organisation on ethics” – he is also completely impervious to any crit-icism of his rule over the beautiful game.

No matter how much negative media attention the behaviour of banking executives attracts – as in the foreign exchange rate

rigging scandal – it seems that they will inevitably be upstaged by those other gnomes from Zurich – the International Federation of Football Associations, otherwise known as FIFA, with its colourful boss, Sepp Blatter. Just when the public relations teams of the major international banks were working on ways to switch the news cycle in order to limit the damage to the already battered reputations of their institutions along comes the gift that keeps on giving – Sepp and his

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The latest batch of Anglo Tapes – featured in the Irish

Independent recently – did little to advance our understanding of the events that led up to the banking crisis in 2008. They did, however, provide further insight, if it was needed, into the mindset of some of those who occupied pivotal positions in Irish banking at the time. The image of senior executives as supremely arrogant and at times quite delusional, gains additional traction from the Independent coverage. Aside from a barely concealed contempt for their own board members – who are deemed either unworthy or incapable of receiving

detailed information on a serious financial situation – there is also vitriolic abuse for Morgan Kelly of UCD who had the temerity to suggest that the economic orthodoxy of the day was based on a property bubble that was bound to burst with catastrophic effect. Even though senior executives in Anglo must have known in their heart of hearts (assuming of course that they had them!) that the writing was on the wall for the bank, they continued to try to convince them-selves that it was not so – apparently on the basis that if they could some- how bluff it out, they might come out the other side. Even though Kelly was a fairly lone voice at the time, his efforts to blow the whistle, in effect – by

revealing that the emperor indeed had no clothes – seemed to cause fury among senior bankers. Former Anglo CEO David Drumm believed that the UCD economist was guilty of “treason” for undermining confidence in Irish banking. In the circular logic of many senior banking executives at the time any dissent or contrary views are intolerable. So even if they are driving a bank or the wider economy onto the rocks, CEOs should be above reproach because this criticism – as opposed to their own actions – might harm the bank’s reputation. That’s a level of infallibility that even a Pope might hesitate to claim!

More infallible than the PopeOr why the CEO of a bank is always right– even when he’s wrong!

The chief executive of Micro- soft who recently advised

female executives not to ask for pay rises, is himself on a package worth more than $84m. Satya Nadella received $79.8m in stock options when he took over the top job earlier this year, as well as a basic salary of $919,000 and a bonus of $3.6m. Just over $7m of the stock options were paid in the 12 months to June as part of Mr Nadella's annual package. The $79.8m figure also includes a one-off “special re-tention award” worth $13.5m and a long-term stock performance bonus worth up to $52.9m. The last two bonuses are payable between now and 2021. The revelation of his remuner-ation package follows his rather unfortunate remarks to a con-ference last month that women should rely on “karma” – rather than asking for pay rises. “It's not really about asking for the raise,” he said, “but knowing and having faith that the system will actually give you the right raises as you go along. It’s good karma. It will come back.” Nadella has since apologised for his comments, which he said were “inarticulate” and “completely wrong.”

No need for pay claims: women should trust in karma – saysMicrosoft CEO

Megasoft?: Satya Nadella

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