Spectrum May 2011

Preparing for

the Challenge

MAY 2011

CONFERENCE DEVELOPS CHANGE AGENDA

PENSIONSNEWSProtecting your future income

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SAFETYFEATURENew health and safetystructure in Ulster Bank• Play safe – work safe• Brodie’s law inAustralia

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SHORTCUTSSeán Óg free at last •Complaints against banks• Bank deposits fall byE16.7 billion in March •End of an error 1 • Endof an error 2 • Regling •Mixed blessings

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SHORTCUTSRBS faces EU inquiry •Bank directors sought •Ex-President of failed USbank jailed • Unionrights theme for LutherKing memorial events inUS

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NEWSANALYSIS‘Debt depression’ • USbanks to face law suits?• UK banks ringfenced?

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NEWSANALYSISAn Agenda for A Change

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IBOANEWSDifferent class: Unionlaunches new traininginitiative • IBOA’sEqualisers

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E:UNIONIBOA TV News goesonline

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may 20112

The Magazine FOR MeMBeRS OF iBOa – The Finance UniOn

SPORTSSOCIALIBOA Family Zoo Days •IBOA Golfer of the Year2011

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NEWSANALYSISAfter Nyberg, IBOA urgesDáil inquiry • Angloinvestigation nears end?

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CULTURESURVEYSurvey of WorkplaceCulture – SpecialPull-Out

CONFERENCECALLA Vision for A Change • Union in High Level Talks •IBOA’s New President • New Executive Committee

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infra: red

Spectrum May 2011 Spectrum 16/05/2011 12:26

FLICKPICKThor: A Norse of adifferent colour

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STAGERIGHTShaw fire hit for AbbeyTheatre and CharlieMurphy

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IDEALOGETUC economist outlinesrace to bottom on payand conditions acrossEU • Brendan Fullam’sReflections

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SUPERQUIZZESPicture Board • Prize

Crossword • Sudoku

Challenge

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ULTRAVIOLETCrash machines • Living on the hedge • A loan at last• Potted history • And finally…

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3may 2011

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WORKPLACE

NEWSBreakthrough in Ulster? •Northern Bank pay deal •Talks proceed at NationalIrish

39-41

WORKPLACE

NEWSUnion secures benefits forIrish Nationwide members• Agreement on BOI ITcontract transfer

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LIFESTYLEEat chocolate and live anextra year!

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BOOKWORMLip-synching capitalism:Goldman Sachs – nolonger loved but stillpropsering!

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infra: red

WORKPLACE NEWSAIB proposes massive job cuts • Bank staff shocked byE3m pay-off to former AIB chief • Bonus of contentionrocks BOI

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MUSICMAESTROPaul Simon: So Beautifulor So What?

49


Deposits held by banks in Ireland continuedto fall in March while lending also declined,according to figures released by the CentralBank recently. Money on deposit fell by ¤16.7 billion inMarch compared to February – leaving atotal deposit base of ¤630.7 billion. This latest fall means that in the sevenmonths between September and Marchclose to 30% of Irish bank deposits havebeen withdrawn – reflecting a significant lossof faith in Ireland by international investors. The Central Bank categorises the data by theplace of residence of the depositors – Ireland,the Eurozone and the rest of the world. Up to March, depositors from the rest ofthe world had withdrawn money from Irishbanks faster than the others, while Irishresidents had made the least withdrawalson average.

In March the pattern changed –with Irishresidents accounting for almost ¤9 billion ofthe ¤16.7 billion fall in deposits for the month. Overall bank lending also continued tofall in March – with both businesses andhouseholds paying down bank debt. Total bank lending to companies fellby more than ¤1 billion between Februaryand March. Companies now owe banks justunder ¤90 billion in total. Total bank lending to households fell byclose to half a billion euro in March to standat ¤130 billion. Households have paid backa net ¤27 billion in bank debt since 2008. IBOA has expressed major comcernsabout these developments to the appropriateauthorities in the Republic and is developingspecific proposals to address the issue as partof its strategic response to the unfoldingcrisis.

may 2011

short: cuts

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SPECTRUM4

Bank deposits fall by€16.7 billion in March

End of an error 1

Anglo Irish Bank Chief Executive, Mike Aynsley, collects a souvenir as the signage isremoved from the Bank’s Head Office in St. Stephen’s Green, Dublin. (Photo: EamonnFarrell/Photocall-Ireland).

Complaintsagainstbanks atrecord levelComplaints against banks havenow reached record levelsaccording to Bill Prasifka, theFinancial Services Ombudsmanin the Republic. The Ombudsman’s office received7,230 formal complaints in 2010about heavy handed tactics by banksand other institutions. The office alsohandled 15,000 phone queries –witha further 37,500 hits on the website. The Ombudsman’s office alsosecured settlements worth a total of¤2.6m for complainants. Of the ¤1.3mworth of settlements made betweenJune and December – a total of¤806,262 was paid out for invest-ment-related complaints.

Seán Óg isfree at last!Former All-Ireland-winning sen-ior hurling captain, Seán Óg ÓhAilpín, is to be honoured as aFreeman of the City of the Cork. Employed as a Manager inUlster Bank’s Douglas Branch,Seán has been an IBOA membersince 2007.

Seán Óg Ó hAilpín


may 2011

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SPECTRUM 5

Regling:nobodyshouted stopThe co-author of one of themajor reports into the Irishbanking collapse said recentlythat nobody in Ireland or inEurope shouted “stop.” Klaus Regling, who with MaxWatson conducted one of the threeinvestigations undertaken so far, saidrecently that Ireland had all of thetools necessary to stop the propertybubble developing during the boomyears, but had failed to use them. Klaus Regling now heads theEuropean Financial Stability Facility(EFSF), the European Union’s bailoutfund. He said that the creation of newEuropean bank regulation agencies –including a new European SystemicRisk Board – should help to avoid arecurrence of similar problems in thefuture. He pointed out that, if thesebodies had been in place earlier, theycould have told the Irish authoritiesthat there was a problem with thehousing market, and the Irish author-ities could have used their existingpowers to address it.

Klaus Regling, Head of the Euro-pean Financial Stability Fund.(Photo: Eleanor Keegan/Photocall-Ireland).

Barclay’s Chief Executive, Bob Diamond, has apologised to the Bank’s customers overthe mis-selling of payment protection insurance. (Photo: Daniel Lewis).

End of an error 2British banks abandon legal challenge to compensationfor customers for mis-selling of insuranceThe British Bankers’ Association (BBA) hasdecided to abandon a legal challenge to newrules which have been introduced by Britain’sFinancial Services Authority (FSA) for dealingwith customer complaints about paymentprotection insurance. Payment protection insurance (PPI) issupposed to cover borrowers for mortgage,loan and credit card payments if they becomeunemployed or ill. However, many policies,which have been sold by British financialinstitutions at a cost of up to £5,000 each,have been found to contain so many loop-holes that many policy-holders can never claim. In addition, it has been claimed thathigh-pressure tactics were used to sell thepolicies –with customers frequently unawarethat a PPI charge had been added to the costof their loan. With an estimated 1.5 million customersalready lodging complaints about PPI andthousands more claims put on hold duringthe BBA’s legal challenge, analysts believe thata total of around three million claimants arelikely to seek compensation of up to £9 billionfrom credit card and loan providers togetherwith the four main retail banks – Barclays,

Lloyds-HBOS, HSBC and RBS – making thisone of the biggest mis-selling scandals inBritish financial history. The BBA had been challenging the FSA'sdecision to apply new complaints handlingrules to old PPI cases on the grounds that thisamounted to retrospective regulation. However, once the biggest PPI provider,Lloyds-HBOS, had announced it was with-drawing from the case and putting aside£3.2 billion for compensation, it was only amatter of time before Barclays also signalledits intention to withdraw while RBS quicklyfollowed suit – with both institutions indicat-ing that they each would set aside £1 billionto cover claims. Although HSBC stopped sell-ing PPI in 2007, it is believed to have set aside£270m for compensation. Lloyds is said to be hiring hundreds ofadditional staff to process all of the claimsalready lodged or expected in the future. The PPI scandal takes its place in theannals of the British financial sector – alongwith the pension mis-selling scandal whichprompted compensation of around £13 billionas well as the endowment scandal whichcost the sector just under £3 billion.


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SPECTRUM

Bank of Ireland’s recently announced annualresults for 2010 were better than expected withnet losses down to E609 million largely as aresult of the significant discounts it managed toachieve in debt-restructuring deals with bond-holders. The final outcome was even more unexpectedas Bank of Ireland recorded nearly E2.5 billion oflosses in 2010 on the transfer ofproperty-based loans and assetsto the National Asset Manage-ment Agency – after losses ofE1.9 billion in 2009 on similartransfers to NAMA. The results surprised manyanalysts who had forecast atleast double those losses in viewof the Bank’s previous loss ofE1.76 billion in 2009 and themajor losses for 2010 alreadyreported by other Irish banks –including AIB with E10.4 billionand Anglo with E17.7 billion.

Bank of Ireland still faces a challenge to avoidmajority State-ownership since it must now raisea further E4.2 billion in capital in the comingmonths following the recent capital and liquidityassessments carried out by the Republic’sregulatory authorities. The Irish State is already the Bank’s singlebiggest shareholder with a 36% stake. Finance

Minister, Michael Noonan, haspromised that the State will makeup the difference if the Bank failsto secure the necessary fundingthrough its own efforts.

Commentators have pointedto the results of Ireland’s twolargest banks as further signs that– Northern Bank aside – Bankof Ireland should emerge as thefittest survivor of the Irish bank-ing crisis. AIB, on the other hand,is now 93% State-owned withrecord losses and in need of E13billion for recapitalisation.

may 20116

BOI’s results are better thanexpected – AIB’s are worse

short: cuts

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Mixed blessings

BOI Chief Executive, RichieBoucher, seeks new investors.

Further growthin banking bysmartphonein USABanking software nowmakes up 37% of allapplications purchased forthe Apple iPhone, GoogleAndroid and RIM Black-berry in the US. According to a study con-ducted by FIS Mobile FinancialSolutions, about three out offour users who use their smart-phones for banking are happywith their experience this year– an increase of 16% from2010. Among the main reasonsidentified by analysts for thiscontinuing growth in bankingby mobile phone are ongoingimprovements in smartphonetechnology and the availabilityof low-cost user-friendly apps aswell as the obvious personalconvenience offered by mobilephones. However, concerns remainfor some customers aboutmobile phone security.


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SPECTRUM 7may 2011

short: cuts

Departmentof Financeadvertises forbank directorsThe Republic’s Departmentof Finance has advertised forpeople who are interested inbeing appointed or nomi-nated to the boards of thebanks. This new initiative hasbeen taken in an effort tomake the appointment processmore open and transparent. In order to qualify forappointment, a person “mustnot have any conflicts ofinterest likely to interfere withhis/her ability to play a fullpart on the board,” accord-ing to the advertisement. Any person expressingan interest must also have“considerable expertise” infinancial services and experi-ence at a senior level in oneor more of ten listed areas. IBOA favours much greaterdiversity on the boards ofbanks – including employeerepresentatives (see Page 11).

The inquiry will focus on credit default swaps(CDS) – the highly controversial financial con-tracts which have been designed to allowinvestors to insure against debt default. As well as a form of insurance for investorsproviding debt, credit default swaps are heavilyused by speculators who bet on companies orcountries defaulting on their debts. It has been suggested that these banks –including some rescued from collapse by taxpayerfunding – may have deliberately driven up thecost of insuring national debts – and, therefore,the debt itself. As the £360 trillion CDS market is largelyunregulated – with no central records of trading,the only record of many multimillion euro dealsmay be a fax. This lack of transparency has raisedmajor concerns for many commentators. Some have likened the position of a CDSspeculator to that of a neighbour who buysinsurance on your house – a practice which isillegal since it could incentivise him to let yourhouse burn down, or even set the fire. Joaquín Almunia, the EU Commissionerwith responsibility for competition policy, said:

“Recent developments have shown that thetrading of this asset class suffers a number of in-efficiencies that cannot be solved through reg-ulation alone. We are, therefore, opening twonew cases to improve market transparency andfairness in the CDS market ... Lack of trans-parency in markets can lead to abusive behav-iour and facilitate violations of competition rulesand the Commission should react accordingly.” The sixteen banks under investigation are:Goldman Sachs, HSBC, Barclays, Royal Bankof Scotland, JP Morgan, Bank of AmericaMerrill Lynch, BNP Paribas, Citigroup, UBS,Commerzbank, Credit Suisse, Deutsche Bank,Morgan Stanley, Wells Fargo Bank/Wachovia,Credit Agricole and Société Générale. If found guilty of abusing their position, thebanks could be fined up to 10% of revenues bythe EU Commission. Members of the European Parliament havelobbied for proper regulation of the CDS market– including the establihsment of a central counter-part (CCP) or clearing house, supervised by theEU, to reduce the risks from these instruments –as well as other areas of the financial system.

Royal Bank of Scotland, Ulster Bank’s parent company, is one of sixteen internationalfinancial institutions under investigation by the EU Commission over suspicions thatthey colluded in providing dubious financial derivatives which have contributed to thesovereign debt crisis in the eurozone.

RBS faces EU inquirywith 15 other banks

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The key themes of this year’scommemorations were the pro-tection of collective bargainingrights, the right to a voice in thepolitical process as well as respectfor work and working America.These events included:• mass demonstrations in down -

town Chicago and New York’sTime Square;

• university students and pro-fessors hosted more than 175teach-ins across the country;

• local congregations in Maine,Michigan and Colorado tookpart in inter-faith services, candle-lit vigils and rallies; and

• members of the InternationalLongshore and Warehouse Unionin many US ports displayedWisconsin flags to support thatstate’s public sector workers.

The nationwide protests cameagainst the backdrop of a majorassault on basic union rights atstate level in many parts of theUnited States. Richard Trumka, President ofthe AFL-CIO trade union federation,said: “What started in Wisconsinhas spread to every state across thecountry as working people standtogether to say enough. “The immense activity… is adirect result of the backlash pro-voked by over-reaching governorsand state legislatures,” he said. “Working people’s energy andcommitment to coming togetherwill continue until the prioritiesof many of our politicians are re-aligned to create jobs rather thanundermine the middle class.”

Richard Trumka,President of theAFL-CIO tradeunion federationin the US.

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Hundreds of thousands of people – proclaiming the slogan.“We Are One” – took part in more than a thousand eventsacross the US last month to mark the forty-third anniversaryof the assassination of Martin Luther King.

Union rights theme forMartin Luther Kingmemorial events in US

Ex-Presidentof failed USbank jailedThe former head of the onlyTexas bank to fail last year hasbeen sentenced to prison forfalsifying the books. A federal judge in San Antonioon Thursday sentenced former LaCoste National Bank president JodiP. Gwyn to five years in prison.Gwyn was also ordered to make$8.3 million in restitution. Gwyn pleaded guilty to makingfalse entries in bank documents in2008 in order to deceive examinersabout bad loans. Federal regulatorsclosed the bank in February 2010. Meanwhile in Ireland…

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SPECTRUM 9may 2011

You are not alone. Many bank workers around theworld are forced to meet quotas and sell financialproducts that customers don’t want or need.

Customers deserve good advice and bank workersdeserve the right to give good advice.

UNI Finance Global Union is banking on rights:Rights for workers and rights for customers.

The sales target model was a major contributor tothe global financial crisis. Despite that, banking bossescontinue to push for business as usual. We’ve hadenough. We want to change the rules of the game.

Join us and fight back:

• Demand employers stop sales pressure!• End excessive sales targets.• More appreciation for employees’ work instead

of constant supervision.• More time and more staff mean better advice.• Better and regular training courses so bank

employees can provide qualified advice.• A reasonable fixed monthly salary – which should

not depend on the sale of individual products.

Unions have joined the UNI Finance global campaign toBank on Rights for workers and customers everywhere.For more infromation see www.uniglobalunion.org

Are you under pressure to pushproducts by banking bosses?

Germany: “Our boss tells us: ‘Youare not advisors, but sellers. Advisingis done by consumer advice centres.’”

US: “Banks rely on dodgy practicesto increase overdraft fees, late creditcard payments or interest rates. They

describe these as the new norm anda chief source of earnings.”

Brazil: “Because of high individualsales targets many bank workers endup conditioning the offer of bankservices with buying other products.”

Australia: “The Barbeque Guide tellsworkers how to sell bank productson their own time at social events.”

Kenya: “When it is slow in bankbranches, workers are told to go ontothe street and try to get customers.”


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SPECTRUMmay 2011

10

The Changing Landscape

Immediately following the intro-duction of the State guarantee forthe six leading domestic financialinstitutions in September 2008, thespeculation began about how thebanking sector might be rationalised.There was a common recognitionthat six domestic institutions wasunsustainable. Two of these – AIB andBank of Ireland – were consideredto be core with the likelihood of a“third force” being created out ofsome combination of the viableelements of the rest. Two-and-a-half years later, that basicconfiguration still appeared to be the con-sensus view – although barring the recenttransfers of the loan books of Anglo andIrish Nationwide to AIB and PermanentTSB, progress towards that brave newworld had been hard to discern. However, the new Minister for Financechanged everything with his brief butdramatic announcement on the eve ofApril Fools’ Day – after the outcome of thestress tests on four of the domestic banks. The concept of the third force is nomore – the future of Irish banking is to bebuilt around “two pillars,” according toMichael Noonan – Bank of Ireland and AIB. In the intervening period, there were anumber of attempted variations on thethird force theme such as the possible link-up between INBS and EBS, the possibledivision of Anglo into a “good bank” anda “bad bank”, the possible sale of EBS toeither the Cardinal Asset Managementconsortium or Irish Life and Permanent. While moves are now also under wayto merge elements of Anglo and INBS intoa single asset recovery operation to handlethe impaired loans of the two businessesthat have not been transferred into theNational Asset Management Agency, itremains the case that two-and-a-half yearsinto the crisis, the major restructuring ofthe Irish financial services sector is onlynow getting under way. There has been a great deal more re-structuring activity among the foreign-owned banks operating in Ireland. The twomajor Irish subsidiaries of RBS – Ulster Bankand First Active – were merged under theUlster Bank banner with the loss of 1,000jobs in 2009. Danske Bank’s Republic ofIreland business – National Irish Bank –closed around half of its Branch networkwith the loss of 150 jobs in 2010. Halifax-Bank of Scotland – now part ofLloyds/HBOS is also in the process of wind-ing down its Irish businesses: its main-

news: analysis

stream retail banking arm, Halifax, hasclosed down entirely with the loss ofaround 750 staff, while its business bank-ing arm, Bank of Scotland Ireland, isengaged in a phased withdrawal whichmay also over time affect a similar numberof employees. Among the other notable foreigninterests to exit the Irish market since theonset of the crisis was BNP-Paribas whichheld a 50% stake in Postbank, a jointventure with An Post.

Northern Ireland andGreat BritainAlthough some commentators tend to viewthe Irish financial services sector within theparameters of the Republic of Ireland, it isclear that the sector is inextricably linkedto its counterparts in Northern Ireland andGreat Britain. Both AIB Group and Bank of IrelandGroup have extensive interests in the twojurisdictions. Ulster Bank operates in boththe Republic and Northern Ireland whilealso being linked, through its parent, RBS,to a major British network. National IrishBank’s parent, Danske Bank, also ownsNorthern Bank, currently the best perform-ing retail bank in Northern Ireland.

This article is intended to complementthe news analysis piece in the last issueof Spectrum entitled From best case tobasket case: How did it all go wrong?

An Agenda forA Change

The Republic’s new Minister for Finance, Michael Noonan (Photo: Leon Farrell/Photocall-Ireland).


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SPECTRUMmay 2011

The cross-jurisdictional dimension oftheir operations is important to theseinstitutions in terms of having a morediverse business model and further oppor-tunities to enhance their profitabilitythrough economies of scale and other syn-ergies. It also improves the image of theinstitutions as potential targets for inter-national investments. For Northern Ireland, in particular,the presence of a number of financialinstitutions with a strong vested interest inthe success of the local economy is alsoimportant. A strong Northern economycan create important opportunities forbusinesses in the Republic and vice versa –a situation which would confer obviousbenefits on those credit institutions whichare strongly represented in both juris-dictions. This mutual economic advantage isalso one of the key reasons why anygovernment in the Republic of Ireland con-templating the future of the Irish bankingsystem should pay particular attention tothe Northern Ireland dimension. Beyondany political sentiment, there are verytangible and practical reasons why con -

sideration of Northern Ireland should bean integral part of any conversation on thefuture of Irish banking – rather than simplyan afterthought. For our part, having recently securedan agreement with Bank of Ireland throughwhich its operations in Northern Irelandand Great Britain are not only retainedbut further integrated within the Bank’sstructures, we strongly favour the develop-ment of the strongest possible cross-jurisdictional relationships. The pursuit of this principle was alsoevident recently in IBOA’s campaign topersuade AIB Group to reverse its decisionto dispose of its UK Division. While one ofthe first public announcements by theBank’s new Executive Chairman lastNovember was the withdrawal of the UKDivision from sale ostensibly because therewas insufficient interest in the market atanything approaching a realistic price, it isalso true that IBOA succeeded in securingthe engagement of key political figures inNorthern Ireland on a cross-party basis inmaking representations to both the Boardof AIB and the Irish Government. Thisengagement is ongoing.

Regulation, Complianceand CultureAside from the headline issues of ensuringadequacy of capital and liquidity and ofreshaping the banking landscape, a root-and-branch review of policy and practicein the financial services sector is alsoimperative to ensure that the regulatoryframework and the cultural environmentare reformed in order to eliminate as faras possible any possibility of a recurrenceof the recent catastrophic collapse. Some of the measures already taken orproposed by the Governor of the CentralBank and his Head of Financial Regulationrepresent a welcome advance in this regard.Proposals to introduce criteria for thefitness and probity of candidates forappointment as Board members or assenior executives are welcome. However, in order to ensure that, onceappointed, these leaders do not engage inreckless behavior with impunity, legislativechange is required to empower share-holders to take legal action against atruant Board or senior management. The composition of Boards should alsobe required to become much more diversein order to promote transparency andregulatory compliance. Among the majorcriticisms of the behaviour of Boards in theperiod leading up to the current crisis wasthe charge that their memberships tendedto reflect a “golden circle” of narrow busi-ness interests. Apart from broadening the gover-nance base to reflect the widereconomic and social impact of thefinancial sector’s activities, the inclusionof employee representatives along withthose of other stake-holders shouldbe a priority to ensure that the Boardis made aware not only of the mannerof implementation of the policies theyadopt – but also of their direct impactupon customers. As the current crisis has unfolded,various commentators have lamented theabandonment of traditional banking valuesbased on prudence, integrity and honestyas the boom gathered momentum. As banking leaders have made themost contrite pleas for forgiveness and un-derstanding, they have promised that theculture would change. But so far these promises, like manybefore them, have been empty – a furtherexample of those at the top saying whatthey think the public wants to hear – eventhough the reality is quite different. Anychange in culture is virtually undetectable.

news: analysis

⁄

AIB Bankcentre (Photo: Eamonn Farrell/ Photocall-Ireland).


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Indeed the Union has been madeaware of quite perverse behaviours insome institutions where employees are stillrequired – under the threat of possible dis-ciplinary action – to run through a lengthychecklist of questions with customers –offering them a range of additionalservices and products – even though thecustomers have no desire to avail of them. So even though managements aregenerally reluctant to honour agreed per-formance rewards, staff in the financialservices sector remain under extreme pres-sure to meet targets. Staff who speak out – even in thebroadest terms – may find themselvessubjected to disciplinary action on thegrounds that the very act of uttering wordsis itself a breach of confidentiality. Without proper legal protection, anywould-be whistleblowers have to steelthemselves for the possibility of disciplinaryaction or even dismissal, if they bring theirconcerns to the authorities. The State has never been in a morepowerful position to change the culture ofbanking for the better – based on a returnto the traditional values of prudential lend-ing and the restoration of customer serviceas the primary goal. A starting point should be the intro-duction of proper legislative protection for“whistleblowers” – not only as a deterrentto the reckless behaviour of the past butalso to supplement the regulatory author-ities in their efforts to hold banking bossesto account in deed as well as in word. A comprehensive review of remu-neration policies within the financialservices sector is also vital from top tobottom. This should include:• consideration of the various payments

made to Board members;• consideration of all aspects of the

reward packages for senior executives;and

• the role of performance-related paysystems at a time when an intensivetarget-driven culture is no longerrelevant.

On this latter point, IBOA believes that arebalancing of remuneration is required –not only from the perspective of ordinarybank employees whose earnings havebeen reduced as a result of the non-avail-ability of performance awards – but alsoin terms of the broader need to changebehaviours throughout the sector byincentivising activities which contribute tothe long-term viability of the institutionrather than short-term gains – which canoften turn out to be exaggerated or illusory.

Minimum CompetencyRequirement (MCR)Developing positive behaviours amongstaffin the financial services sector has also beenone of the main aims of the introductionof the Minimum Competency Require-ment (MCR) in 2007 by the Republic’sFinancial Regulator. While IBOA hasendorsed the principles underpinning thisinitiative, the Union is one of many bodiesto have expressed concerns about themanner in which it has been implemented. Rather than insist upon a commonapproach throughout the sector in 2007,the Financial Regulator decided to alloweach institution to interpret the policy as itsaw fit. This has resulted in a situationwhere staff employed in a particular gradein one institution may be considerablymore qualified – perhaps even over-quali-fied compared to their counterparts inanother institution. Likewise, at a time of crisis within thesector, IBOA has also expressed concernthat some managements might be temptedto set the competency requirement for a

particular role higher than necessary inorder to create a pretext for terminatingthe employment of staff unable to meetthis higher standard. Some institutions have sought higherstandards as a step towards multi-tasking– based on the presumption that all oftheir staff should be equipped to deal withalmost every eventuality. However, the MCR is not a once-offevent – involving the acquisition of anappropriate qualification; it is an ongoingprocess – involving the practice of theacquired competencies in the form ofContinuing Professional Development.In order to be considered fit to practice,employees are required to be able todemonstrate that they have indeed madesufficient use of these skills to maintain anyacceptable level of competency. The lack of consistency between insti-tutions also applies to another facet of theMCR policy known as ‘grandfathering’ –the process through which the extensiveexperience enjoyed by long-serving staff inthe financial services sector was consideredto be of equivalent value to certification. The differing approaches to this issuebetween institutions has been unsatis -factory. Indeed, in some cases, institutionshave not even stuck to the terms underwhich some staff members were originallyagreed to be ‘grandfathered.’

The Central Bank of Ireland (Photo: Sasko Lazarov/Photocall Ireland).

news: analysis

The State has never been ina more powerful positionto change the culture ofbanking for the better.


13may 2011

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The Union has encountered a numberof cases where staff who were previouslydeemed to be exempt from the need toattend courses and pass examinations,have suddenly discovered that they mustnow participate in this activity within amuch reduced time period for completionof the programme.

The confusion surrounding the imple-mentation of MCR has created consider-able concern and stress among staff at atime of exceptional pressure resulting fromthe generally chaotic state of the financialservices sector. This has also been reflectedat times in extremely hostile reactions fromcustomers and the general public who

have often directed their anger at the reck-less behaviour of senior managementtowards those staff with the misfortune tobe working on the frontline. This confusion around the implemen-tation of MCR is all the more unfortunatesince one of its key objectives is to enhancethe trust and confidence of customers inthe staff working in the financial servicessector. This is another area which could makea significant impact on the culture withinthe financial services sector provided it wasapplied with proper sensitivity to ensurethat staff could embrace any changes inthe working environment positively –especially since ultimately they will be keyto its delivery at the interface with thecustomers.

Forum on the FutureTaking all these issues into consideration,IBOA’s demand for a Forum on the Futureof Financial Services is an idea whose timehas come. Indeed it is now long overdue. This body should enable all of the stake-holders in this sector – including bothdomestic and foreign-owned institutions– to engage in robust discussions on thestrategic direction of the financial servicessector – recognising that, together, weshare a mutual interest in ensuring thatthe sector becomes a loyal servant ofeconomic and social development ratherthan its untrustworthy master. S

news: analysis

Great savings and offers for IBOAmembers in Great Britain and NorthernIreland from Thomas Cook – including a6% discount on thousands of holidays.

Just call 0870-0102904 – quoting referenceIBOA – or visit www.staffholidayclub.com

Dr. Patrick Honohan, Governor of the Central Bank, and Matthew Elderfield,Head of Financial Regulation (Photo: Sasko Lazarov/Photocall Ireland).


As depression caused by financialdebts is a growing concern, a lead-ing anti-suicide campaigner hasproposed that banking and debtcollection staff should receive mentalhealth awareness training. President of the Irish Associationof Suicidology, Dan Neville –who isalso a Fine Gael TD – believes thatcreditors have a duty to help – ratherthan hound – their customers,especially if they are known to besuffering from serious health issues. “Changes in practices – suchas waiving fees when a customerhas been unwell and introducingmental health awareness trainingfor bank staff – will make all thedifference,” according to Neville. “The Government must giveleadership and ensure that thereare resources available to thepsychiatric services to deal with thisfall-out from the present economiccrisis,” he said. “Irish personal debt stands ata staggering ¤172bn and is asignificant cost on our mentalhealth,” he added. “Money worriesaren’t just keeping people awakeat night, they are causing a highlevel of stress, depression and, insome cases, self-harm and suicide.” Research in Britain found thatpeople with mental health prob-lems were three times more likelyto be in debt as a result of living onlow incomes and being unable toget a job, according to the FineGael TD.

Apart from providing aware-ness training for staff, Nevillebelieves that banks should makearrangements for customers to optto have their accounts monitoredfor erratic spending in order tobetter protect their finances. People with bipolar disorder,at risk of spending extravagantlyduring a manic phase or schizo-phrenia, were four times morelikely to be in debt than the rest ofsociety, Neville warned. He added that researchers inBritain found that fewer than onein three people in serious debtinform the lending institution oftheir mental health problems. This is probably because mostpeople with mental health prob-lems do not think they will beunderstood or believed – whileeight out of ten people who did telltheir creditors, continued to beharassed about debt payments,

DEBT AND DEPRESSION–A VICIOUS CIRCLE

British mental health charity,SANE, has reported more peoplecontacting its help-lines overdebt worries. “We are certainly hearingmore from people who areworried where the next meal iscoming from,” says SANE’s ChiefExecutive, Marjorie Wallace. “Itis a toxic combination, especiallyfor those who already have darkerthoughts and other problems.” Kathryn Hill, from the MentalHealth Foundation said “We knowthat work and money issues aremajor sources of stress.” Britain’s National HealthService is preparing for a rise inmental health problems –having increased funding fortalking therapies by £400m.

Dan Neville,President of theIrish Associationof Suicidologyand Fine Gael TD(Photo: Photocall-Ireland)

may 2011

SPECTRUM14

news: analysis

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Bank workersneed trainingto handlecustomerswith ‘debtdepression’

Irish personaldebt stands ata staggering¤172bn


may 201115

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news: international

Many American-based banks must nowbe wondering if they may soon be in thefiring line after the US Department ofJustice initiated legal proceedings underthe False Claims Act against Deutsche Bankfor allegedly tricking a governmentinsurance programme run by the FederalHousing Administration (FHA) into backingmortgage loans that were much riskierthan they were portrayed. Many of thoseloans have defaulted causing nearly $400million in losses already – with possiblymore to follow. Of course, it is widely known thatmany financial institutions had passed offbad loans as good during the sub-primemortgage crisis. Even if they were notguilty of direct fraud, many investmentbanks were using complex derivatives to

make their mortgage deals look muchsafer than they were. The False Claims Act, which was set upto penalise companies that lie to the Govern-ment in order to secure public funds, providesfor damages of up to three times the originalsum acquired under false pretences. So if Deutsche Bank is found guilty inthis case, it could be liable for damages ofnearly $1.2 billion – or more if the lossesat the FHA continue to grow. With other banks also coming undersuspicion of passing bad or unverifiedloans to the FHA, US District Attorney,Preet Bharara, said recently that it wasn’ta big leap to expect the Government to goafter other lenders to recover tax-payers’money. Meanwhile, back in Ireland…

Banks in US to facefederal law suits?

An international arrest warrant hasbeen sought for the former presidentof the Bank of Moscow who has beenliving in London since March. Andrei Borodin (right) is wanted by theRussian authorities for approving an allegedlyfraudulent loan of £280m in 2009 for the

benefit of Yelena Baturina, the wealthy wifeof the then mayor of Moscow. While Mr. Borodin strongly denies anywrongdoing, he left Russia at the end ofMarchas a formal investigation into the loanbegan to gather pace. He subsequently solda joint stake in the Bank of Moscow for anestimated £625m.

Former bank chief faces extradiction

Retail banks inUK should bering-fenced, saysIndependentCommissionThe retail operations of banks operating inthe UK should be “ring-fenced” from theirinvestment banking arms, according tointerim findings of the Independent Com-mission on Banking, headed by Sir JohnVickers. The report said that, in the build-up tothe crisis, lenders and borrowers took on“excessive and ill-understood risks” –based on the assumption that the taxpayerwould ultimately underwrite any losses be-cause of the need to protect retail banking. However rather than separate retailand investment banking, the Commissionis looking at forms of "retail ring-fencing",under which retail banking would becarried out by a separate subsidiary withina wider banking group. The Commission has also said thatbanks need to hold more cash in reserveto protect against future crises, and thatcreditors – rather than taxpayers – shouldbe liable for any losses. The report recommended that banksshould have 10% of their capital set asideto cover potential losses, higher than the7% set out in new European regulations.However, the Commission said it was notproposing that UK investment banksshould hold higher capital ratios than theirinternational rivals. The Commission was set up by theUK’s Coalition Government last June toreview the structure of banking in thewake of the financial crisis. Its final report is due to be publishedin September. But the British Governmentis not obliged to act on any of the Com-mission’s recommendations.

Deutsche Bank could be first of many banks to face legal action by the USGovernment.


may 201116

news: analysis

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“The Nyberg Report onthe Republic's bankingcrisis represents a furtherindictment of the funda-mental failings in the bank-ing sector in recent years,”declared IBOA GeneralSecretary, Larry Broderick. “While Peter Nyberg doesnot identify specific individualseither for their failure to meettheir obligations to carry outeffective oversight or fortheir willingness to engage inimprudent practices, it is clearfrom his analysis that we werewitnessing a systemic break-down in Irish banking whichnow requires fundamentalreform,” said the IBOA leader.

Meanwhile, the Republic’sMinister for Finance, MichaelNoonan, told the Dáil that theNyberg Report into the bank-ing system dealt with bankerswho forgot what lending wasabout, boards who did notunderstand their responsibilitiesand national authorities whounderestimated the extent ofthe risks being taken. Michael Noonan said thereport was also the story ofan inept government whofuelled the trends instead ofrestraining them and that theunhindered growth of thebubble was not recognised andacted upon at a national level. The Finance Minister saidthat the banks' boards did not

seem to know how banks arerun at grassroots level. Hesaid they did not seem to under -stand the risks of fundingdevelopment projects. The report found that theauthorities did not recognisethe early warning signs. Thebanks’ auditors had a narrowfunction that did not includeinitiating challenging dialogue. Former Finance Minister,Brian Lenihan, said that thereport was damning about theregulatory authorities. He saidthe then Financial Regulatornever made any preliminaryassessments of the situation –but seemed to rely on thebanks themselves to make keydecisions.

The regulatory authoritieshad not engaged in any con-tingency planning. Brian Lenihan claimed thatthe report did not find anyfailure on the part of the pre-vious Government to providethe necessary resources andpowers to those authorities. IBOA General Secretary,Larry Broderick, said that theUnion's own vision for change –which was adopted at IBOA’srecent Biennial Delegate Con -ference – takes on even greaterurgency in the light of theNyberg Report,” he said. The Union aims to engagewith Government on a numberof initiatives for reform, includ-ing the following:

As Nyberg indicts banking sector…

IBOA urges Dáil inquiry

Finnish expert Peter Nyberg at the press conference in the Department of Finance to launch his 156-page report of his studyinto the banking crisis. (Photograph: Sasko Lazarov/Photocall Ireland).


• The culture of bankingshould be radically changedto restore the fundamen-tal values of prudence, in-tegrity and stability, so thatservice to customers be-comes the key priorityrather than the pursuit ofexcessive profits;

• The governance of bankingshould be reformed byensuring greater diversityon boards – includingemployee representatives;and by installing a charterfor whistle-blowers withappropriate legal protec-tions;

• Those who brought finan-cial institutions to thebrink of collapse should beheld accountable for theiractions;

• Remuneration practiceswithin banking should betransformed by replacingsales-driven bonuses andawards based on target-driven performance criteria,with a new salary structurethat prioritises skills, pro-fessional development,customer service, experi-ence and judgment based

on integrity and prudence.• The regulatory and com-

pliance environment shouldalso be strengthened.

“Staff should not be scape-goated for the mismanage-ment of the industry: if anyjob reductions are necessary,they should be implementedon a voluntary basis, withterms in line with recentindustry norms,” declared LarryBroderick. IBOA will continue tomake representations on theseissues to Government, the

regulatory authorities andindividual financial institutions The IBOA leader has alsobacked the call for the estab-lishment of a Special DáilCommittee of Inquiry into thebanking crisis. “This special committeeshould be empowered to callall of the key participants in thebanking sector to appearunder oath to clarify theirprecise role in the crisis so thatlessons may be learnt toensure that we never have toexperience such a catastropheagain,” he said.

17may 2011

news: analysis

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Welcome to CareerMatters.ieCareer Matters – providing comprehensive careermanagement solutions for career choosers andchangers at all stages of professional life.

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Investigationinto Anglonears end?Although the criminal investi-gation into Anglo Irish Bankis 90% complete, according toGarda Commissioner, MartinCallinan – with two large fileshaving been sent to the Directorof Public Prosecutions – theparallel investigation by theOffice of the Director ofCorporate Enforcement stillhas some way to go. Describing the progress ofthe ODCE investigation as “notat all satisfactory” – High CourtJudge, Mr. Justice Peter Kelly,refused an application from theODCE last week for a six-monthextension of the Anglo investi-gation. Instead he agreed onlyto extend it until the end ofJuly when he expected “muchprogress” to have been made. The judge said the failureto prosecute possible criminalwrongdoing was doing nothingto instill confidence in thecriminal justice system.

Finance Minister, Michael Noonan, pictured with the NybergReport. (Photo: Sasko Lazarov, Photocall-Ireland).


may 201118

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IBOA is developing a number of traininginitiatives to be rolled out in 2011 and2012. These initiatives will bring a newlevel of professionalism to IBOA’s suite oftraining options and will be offered toIBOA Representatives at all levels. IBOA Representatives will have newopportunities to undertake training courseswhich will be recognised and certifiedby an appropriate educational awardsbody. There are a number of advantages tothis new approach. The value of the train-ing for the individual will be enhanced.The hard work that the participants putinto the training course will be independ-ently recognised in the form of credits orcertification. The new training plans will also helpto deliver IBOA’s organisational objectiveof building strong workplace organisation. The Union’s Executive Committee isfully behind the move towards a new levelof professionalism in IBOA’s training andhas committed appropriate resources toits achievement. Delegates at the Union’s recent BiennialConference in Croke Park, Dublin, haveendorsed the new training plans for 2011and 2012.

Skills for Union RepresentativesA three-day training programme is beingdeveloped to cover important skills rele-vant for Union Representatives. The coursewill be accredited – so successful partici-pants will receive a recognised certificate.There are three modules in the programme:

Module 1: The Role of the IBOARepresentativeThis module covers aspects of the roleincluding communicating with members,organising in the workplace, one-to-onerecruitment as well as the accreditationprocess and completing a learning record.

Module 2: Handling Members’ IssuesThis module covers handling meetings,handling members’ problems, understand-ing disciplinary and grievance procedures.

Module 3: Industrial RelationsThe third module gives participants a briefoverview of employment law and an under-standing of employment and industrialrelations including workplace negotiations.

This programme will be piloted in Republicof Ireland in June. Participants in the pilotwill be drawn from the various levels ofthe Union’s structure – including IBOA

Representatives, Bank District Secretariesand Executive and Youth Committees.

New IBOA Accredited Training CentreIBOA is deveoping new training procedures,assessment methods, quality assuranceprocesses in order to meet the requirementslaid down by national awarding bodies.IBOA will then apply to become a fullyaccredited training centre in its own right.This will enable the Union to develop andvalidate training programmes which meetthe standards and also fit in with IBOA’sobjectives and strategy in training anddevelopment.

On-Line TrainingAs part of these new training initiatives,IBOA is developing an online distance learn-ing module to provide basic informationfor IBOA Representatives. The internet willenable course participants to take part attheir own convenience.

Education and Training for MembersAs well as providing training for Unionactivists, IBOA also offers a range of per-sonal development courses for membersas one of the partner organisations in theWomen at Work Skillnet.

Different Class

The Women at WorkSkillnet was short-listed for the 2011Star Awards as partof the Aontas AdultLearners’ Festival inthe ‘Learning for Work’category. IBOA was one ofthe founding partnersof the Women at WorkSkillnet which hascontinued to providetraining for manyIBOA members. Pictured withMichael D. Higgins andNoreen Fitzpatrick,Programme SupportManager, Skillnets,are (from left) AileenMorrissey (MANDATE),Marian Geoghegan(IBOA), AlacoqueMcMenamin, Womenat Work Skillnet ProjectManager, and FrankVaughan (ICTU).


19may 2011

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union:union: news

THE POWER OFAt this crucial period in the history of Irish banking, it is vital that the independentvoice of employees is as strong as possible.In order to improve our bargaining power in the vital negotiations – with employersgovernment and regulatory authorities – it is essential that members continueto build IBOA e Finance Union by encouraging their colleagues to join. Manymembers are already making the effort.As a token of our appreciation for these efforts, the Union is offering a shopping voucherworth €50 (or £35) to any member who recruits three new members. It’s a win-win for you:a nice reward and a stronger IBOA!For more details, contact Gareth Murphy at IBOA House by phone at01-4755908 (from Republic of Ireland) or 02890-200130 (from Britainor Northern Ireland) or e-mail: [email protected]

Some of the IBOA delegates to the recent ICTU Women’s Conference (from left): Marian Geoghegan, Mairead Kelleher, UrsulaTighe, Irene Breen, Margaret Browne and John O’Gorman (Photo: Paula Geraghty).

IBOA’s Equalisers


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The Union has launched a new informationservice for members providing news and com-ment in the form of video bulletins which areavailable on the Union’s two websites. Thisnew initiative is the latest addition to the rangeof information services provided by the Union. The short news bulletins cover a numberof stories – in order to provide members witha quick summary of the major developmentsinvolving the Union. The news items are sometimes interspersedwith advertisements for some of the specialoffers on various goods and services – availableto IBOA members. So the whole package isinfomative at a number of levels.

Members will be able to acquire furtherinformation from the many written itemswhich are posted on the websites in the formof press releases, circulars and other notices. Access to this new service is through theUnion’s two websites –www.iboa.org.uk andwww.iboa.ie. While most of the news bulletins are likelyto be available for everyone to view, some ofthe broadcasts may be located within theMembers Only section of the sites, dependingon their content. Access to the Members Onlysection requires the individual’s IBOA member-ship number –which is listed on the address coversheet accompanying every issue of Spectrum.

IBOA TV NewsUnion launches web-based service

e:e: union

If you keep usup-to-date,we can keepyou betterinformedAll members should make sure thatthey inform IBOA House of anychanges in their personal andemployment data –such as changesin address, employment status,grade, etc. This is particularly importantsince a change in employmentstatus – such as moving to part-time hours, for example – could re-sult in a reduced subscription rate. Claims for a refund for anyover-payment of subscriptions –which might arise in such cases –can only be backdated to cover amaximum of two years. You can check your key member-ship details by logging on to theMembers Only Section of the Union’swebsites at either www.iboa.ie/members/profile/ or www.iboa.org.uk/members/profile/ and make anychanges online. Or if you prefer, you can con-tact the Union’s MembershipDepartment:– by letter to IBOA House, Stephen

Street Upper, Dublin 8;– by e-mail to [email protected]; or– by phone to 00-353-1-4755908

or 00-44-2890-200130.

Pinnacle Driving School is anational driving school with

instructors in Dublin, Belfast,Cork, Galway, Lime rick and Bray. All instructors are ADI-qualifiedand our pass rates are at least15% above the average in all testcentres.

IBOA members can avail ofthe special offer price of only ¤30per lesson – rather than the normalprice of ¤35). For further information on howto avail of this special price, pleasecheck www.iboa.ie/ members/ orwww.iboa.org.uk/ members/.

This offeris also avail-able to IBOA members buying giftvouchers for a third party. Unlike other gift vouchers,Pinnacle’s do not have an expirydate. So they can be redeemed atany time in the future.


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Information is power.Tap into the source.

Check out www.iboa.ie orwww.iboa.org.uk for all thelatest news and much more


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22

pensions:pensions: news

Protecting yourfuture incomePensions are the second mostimportant benefit of employment,after salary, and IBOA, along withour Trustees, continues to workto ensure fair outcomes for ourmembers. The pension schemes that will provideretirement income for thousands of ourmembers and their families have beenunder unprecedented pressure in recentyears. Even before the recent financial crisisplayed havoc with the value of pensionschemes worldwide, the general trendtowards increasing life expectancy wasalready leading to demands for reviews toensure that the schemes had sufficientfunds to provide for the extended yearsenjoyed by pensioners. The crisis has added a new urgency tothese reviews – which have already revealedsubstantial funding deficits which havegenerally been addressed by one or moreof the following:• increasing contributions from the

employer;• increasing contributions from the

employee;• reducing the scheme's liabilities by

restructuring the benefits available forfuture and/or existing pensioners.

With many Defined Benefit pension schemesin both the Republic of Ireland and theUK experiencing significant difficulties inrecent years, Trustees have a very challeng-ing task to address these problems whileat the same time protecting the members'interests. In Defined Contribution schemes thechallenges are very different as the schememembers bear all the risk that theirpensions contributions may not provide anadequate retirement income. As the recognised trade union in thefinancial services sector, IBOA takes a veryresponsible approach to the challengesfaced by the pension schemes and,through the member nominated trustees(MNTs), plays a significant part in address-ing the problems. The complexity and governance asso-ciated with the running of an occupationalpension scheme has continued to increaseand MNTs find themselves under increas-ing pressure in terms of both time andknowledge.

DO NOTREAD THIS!NO-ONE IS EVER INTERESTEDIN PENSIONS, RIGHT? WELL,NOT UNTIL IT’S TOO LATE.

SO WHY SHOULD YOUBE ANY DIFFERENT?


Your TrusteesPension schemes established under trustare legally required to provide for at leastone-third of Trustees to be member-nominated. While the process is differentbetween the two jurisdictions and amongdifferent banks, the requirement is absolute. Accordingly, members can take com-fort that in all Defined Benefit schemesthere are fellow IBOA members workingin your interests as a scheme member. Member-nominated Trustees oftenprovide a more trusted channel of com-munications for members and are morein tune with the mood of the schememembership.

What does a Trustee do?Clearly a Trustee must have an interest inthe running of the employer’s scheme anda desire to serve the interests of fellowmembers. The issues facing schemes in thefinancial sector include funding, gover-nance and operational challenges in thecurrent regulatory climate. As these are significant issues to address,Trustees need to have:– an ability to challenge advice from pro-

fessional advisors;– integrity and a capability to use judge-

ment and discretion based on commonsense and experience;

– an appreciation of the strategic issues;– attention to detail; and– an ability to interact at all levels.Ideally a reasonable level of knowledgeand understanding should be evident anda clear commitment to enhance thoselevels over time. It is only through ongoingtraining that Trustees can develop the keycompetencies of the role.

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Small Ads Big ChoiceHoliday Apartments

to Rent

Adverts placed for

IBOA members by

IBOA members

Check out the IBOA websites:www.iboa.ie/services/smallads.html orwww.iboa.org.uk/services/smallads.html

Why are there employer-nominated and member-nominated Trustees?While all trustees have a legal duty to fulfiland to ensure that schemes are run inaccordance with the scheme rules, MNTscan offer a different perspective andpoint of view as well as greater freedomto challenge the employer. MNTs are a valuable conduit for mem-bers to raise concerns and questions withthose responsible for running their pensionscheme. MNTs are often seen as a moreapproachable and readily accessible sourceof information and advice. In the current climate of uncertaintyand of benefit changes, it is vital that schememembers get an understanding of futureimplications.

Defined ContributionSchemesIn the expanding world of Defined Con-tribution (DC) schemes, the ultimate goalis that each member's investment accountis sufficient to purchase an annuity that pro-vides a reasonable level of pension incomeduring retirement. In DC terms this means that the invest-ment performance has delivered the growthrequired over the investment period to

build on the employer/employee level ofcontributions. The real world challenges for MNTs inDC schemes are that often the member/employer does not contribute sufficiently,the annuity rates are expensive and/or theinvestment returns are disappointing. Any combination of these factors canhave a devastating impact on the member’spension.

Defined Benefit SchemesDefined Benefit (DB) Trustees have theresponsibility of delivering the pensionspromise to retiring DB members andaccordingly their focus is often on funding/recovery plans. The scheme and the Trustees must alsobe concerned with longevity risk, interestand inflation risks alongside investmentreturns. With DB schemes the Trustees haveto be concerned about the continuedsupport of the sponsoring employer andthe corrective levels of contribution. It can be challenging to balance thecontributions into the scheme with theemployers capability and willingness tocontribute.

For more information, see www.iboa.ie/services/pensions.html or www.iboa.org.uk/services/pensions.html

pensions:pensions: news


Anew health and safety representativestructure has been agreed between

IBOA and the management of Ulster Bank. Under the agreement, the Union’s BankDistrict Secretaries in Ulster Bank will also serveas Health and Safety Representatives for themembers in their constituencies. As Health and Safety Representatives, theywill not only assist in framinghealth and safety policy andpractice within Ulster Bank –but also investigate hazardsand make representations tomanagement on mattersaffecting the health, safetyand welfare of employees inthe workplace. These duties will involvethese representatives in a pro-gramme of regular inspections–with follow-up reports to theUnion and management.

To enable the Reps to carry out their functionseffectively, the Bank has agreed to providevarious facilities including access to relevanthealth and safety documentation, and appro-priate administrative support such as phone,e-mail, photocopying and secure filing, as wellas paid time off and travel expenses to enablethem to conduct inspections or attend meetings.

The Bank has also agreedto facilitate the Reps’ attendanceat approved training courses –both in their overall role as wellas in specific safety concernssuch as hazards associatedwith display screen equipmentand stress management.

Senior Industrial RelationsOfficer, Steve Tweed – whoalso acts as IBOA’s Health andSafety Co-ordinator, describedthe new agreement as “a majoradvance.”

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Play safe -work safeThe IBOA Safety, Health, Welfareand Security (SHWS) Committeeaims to work with members andemployers to create healthier,safer working environments foreveryone. IBOA has produced guidelineson your rights under health andsafety legislation in the Republicand Northern Ireland These canbe accessed on the IBOA websitesby following these links: ROI: www.iboa.ie/knowyourrights/yourrightsroi/healthsafety.html NI: www.iboa.org.uk/knowyourrights/yourrightsni.html If you have any questions orconcerns about health and safetyin your workplace, please contacta member of your local healthand safety committee in the firstinstance. If there is no health and safetycommittee in your workplace,please contact a member of theIBOA SHWS Committee below: Elaine Barker (BOI), CarmelCurran (FTB), Margaret Power(BOI-GB), EtainRyan Lyons (AIB),Jaynette Stirling (Ulster NI),Robert Thompson (NBL) andKate Varley (AIB) – togetherwith Senior Industrial RelationsOfficer, Steve Tweed. You can contact all of these bye-mail at [email protected] or byphone at 00-353-(0)1-4755908 or00-44-(0)2890-200130.

New health and safetystructure at Ulster Bank

safety:safety: feature

IBOA’s Health and Safety Co-ordinator, Steve Tweed.

Members of the Union’s new safety committee in Ulster Bank (from left: Sinead Murphy,Tommy Kennedy, Suzanne Savage, Chris Linton and Jaynette Stirling). Bank District Secretary,Vinnie Gallagher completes the line-up.

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New penalties for work-place bullying to be intro-duced by an Australianstate government have

been welcomed by unions. But theyare warning that employers mustbe accountable for providing safeworkplaces in which bullying doesnot occur in the first place. Employers, governments and workershave a shared responsibility to make work-places safe, secure and free of harassment,said Ms. Ged Kearney, President of theAustralian Council of Trade Unions. She added that the new Crimes Amend-ment (Bullying) Act, being introduced inthe state of Victoria, was an importantsignal and would mean bullies could faceup to 10 years' jail. “These laws will hopefully help deterpeople from undesired behaviour but itshouldn’t suggest to employers that it’s nolonger their job to provide a safe work-place for all employees,” Ms Kearney said. “Every workplace should have policiesand procedures to deal with bullying andharassment, as it’s essential for employersto provide a safe and harassment-freeenvironment for all their workers.”

Brodie’s LawWorkplace bullies could faceten years in jail in Australia

safety:safety: feature

Ms Kearney said she hoped the increasedpenalties would deter people from bully-ing, but she wanted the government toalso send a strong message to employersthat holding individual bullies to accountwould not absolve workplaces of theirobligations. “Bullying is a scourge in the workplacewhich unions are determined to wipeout,” she said.

“We must all work together to stop itoccurring, but employers cannot shirk theirresponsibility and turn a blind eye.” The union leader concluded: “Ultimateresponsibility for providing a safe work-place is with the employer and in no wayshould new laws absolve them of thatresponsibility, or of their liability. Criminalsanctions alone will not necessarily changea poisonous workplace culture.”

Brodie’s TragedyThe law, which only applies in the stateof Victoria, was introduced after thesuicide of 19-year-old Brodie Panlock, awaitress who jumped to her death inSeptember 2006 after humiliating andrelentless bullying by her co-workers atCafe Vamp in Melbourne. She was spat on, called fat and uglyand, on one occasion, had fish oil pouredall over her hair and clothes. One of thebullies even told her to take rat poison. Former Vamp employees, NicholasSmallwood, Rhys MacAlpine and GabrielToomey all pleaded guilty in MelbourneMagistrates' Court to failing to take rea-sonable care for the health and safety ofpersons. The cafe's owner, Marc Luis Da Cruz,and his company MAP Foundation alsopleaded guilty to two charges, includingfailing to provide and maintain a safeworking environment.


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A Vision forA ChangeBiennial Delegate Conferencedemands say for staff infuture of financial sector

IBOA General Secretary, Larry Broderick, articulates the Union’s vision for fundamental reform of the financial services sector(Photo: Leon Farrell, Photocall-Ireland).

IBOA The Finance Unionhas begun a round ofintense talks with keyfigures in the financialservices sector – afterdelegates to the Union’sBiennial Delegate soughthigh-level engagementwith Government andregulatory authorities todiscuss the recent outlineapproach of the Ministerfor Finance as well as theproposals for over 2,000job losses in AIB Group.


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Following the call by theUnion’s Biennial DelegateConference for high-levelengagement with key figuresin the sector, the Union hasalready met the Republic’sTánaiste and Labour Party Leader,Eamon Gilmore; the Head ofFinancial Regulation, MatthewElderfield; and John Corrigan,Chief Executive of the NationalTreasury Management Agency.In addition a Union delegationalso met the Leader of FiannaFáil, Mícheál Martin, recently.The Republic’s Finance, Minister,Michael Noonan, has alsoagreed to meet the Union shortly. IBOA General SecretaryLarry Broderick told over 150delegates to the Union's Bien-nial Delegate Conference inCroke Park last month that thejob losses proposed for AIBalone would be the equivalentof a major multi-national com-pany pulling out of Ireland:with further redundancies likelyin other institutions in the com-ingmonths.

“In any other circumstance,”said the IBOA leader, “the re-sponse to such a catastrophewould be an employment taskforce to explore alternative em-ployment opportunities, train-ing initiatives, counselling andother services. But a morewide-ranging engagement withGovernment is also necessaryto reflect upon the profoundimplications of what lies aheadfor our members –especially sinceit comes on top of over 7,000job losses in the financial servicessector in the last two years. Outlining A Vision for AChange in the financial servicessector, Mr. Broderick called fora tripartite agreement betweenGovernment, employers andstaff to underpin the changeagenda. He also called for newcorporate governance structuresto improve diversity of repre-sentation on the boards of majorfinancial institutions – as wellas higher standards of probity. “We also need strong legalprotection for whistleblowers –

and a major change in theoperating culture towardsservice-driven goals rather thanthe narrow pursuit of profitmaximisation. “Perhaps if these elementshad been in place years ago –as IBOA demanded at thetime – then many of the prob-lems now confronting this in-dustry and this country wouldhave been avoided,” he said. Other elements of the visionoutlined by Mr. Broderick includea stronger emphasis on regu-lation and the clarification ofthe role of foreign-owned banks– especially since the numberof domestic institutions is to bereduced to two. The Union is also seekingthe amendment of the emer-gency banking legislation, in-troduced in the Republic justbefore Christmas. IBOA wantsto change this law to ensure thatthe employment protectionafforded to workers in othersectors is restored to workersin the financial services sector.

Union in high-level talksRestructuring must include fundamental reforms

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A section of the attendance at the Biennial Delegate Conference in Croke Park, Dublin.

quick

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The crisis in the bankingsystem in Ireland and Britainis the most serious challengeever encountered by IBOA orthe financial services sector. In these circumstancesthere is a real danger thatfinance staff will be seen, atbest, as collateral damageor, at worst, as part of theproblem. The challenge to IBOAis to change that perceptionin order to protect themaximum number of jobsin the financial sector.John Burns, Ulster Bank,

Outside Belfast

The rank-and-file staff inAIB did not create theproblems facing AIB. Thatwas the achievement ofour so-called leaders – whothrough a combination ofarrogance, self-denial andself-delusion mismanagedthe institution to the pointof bankruptcy under thenever-watchful eye of animpaired regulatory systemand following a lamentablefailure of Governmentoversight that has not onlybetrayed the staff and thecustomers of AIB – but thecountry as a whole.

Jessie Doherty,AIB West

Target-setting is now apolicy based on 'no carrotand all stick.' As well as beingbullied in this way, bankstaff are still expected toconvey each new twist inthe institution's message tocustomers without ques-tion –even though previousmessages to customersabout the financial healthof the institution have provento be patently untrue.

Sharon McAuleyFirst Trust Bank, Belfast


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“As a bank official with over fortyyears’ service,” outgoing Union Presi-dent, Margaret Browne, told theConference, “I am saddened by thetransformation in the financial servicessector which has wrought so muchdamage to the economic and socialfabric of these islands. “Even though IBOA was seriouslyconcerned at the emerging trends longbefore the collapse, neither we, as a union,nor our members, as employees, have everbeen encouraged to challenge the ‘groupthink’ which has been so widespread inour industry – right up to this day.

Banking is like a “poorly run army”“The prevailing culture of banking remindsme of a very poorly run army – just do asyou’re told, don’t ask questions and,above all, don’t complain,” she said.

“That mentality is responsible for the lackof diversity in the governance structuresin the financial service sector: it is also thereason why there is no effective protectionfor the whistle-blowers who might exposethe recklessness at the top. “Maybe if these missing elements hadbeen present, many of the outrageousdecisions that have contributed to thedestruction of the banking sector couldhave been avoided,” she added.

OutgoingPresidentsaddenedat financesector’spariah status

The protracted legal proceedings againstthe former Chief Executive of National IrishBank, Mr. Jim Lacey, over various scandalsin the 1990s drew a strong comment fromthe Union’s Danske Group Officer, RobertThompson, at the Conference. “Mr. Lacey has just been declared unfitto practice in a financial institution into thefuture,” he said, “following a finding of‘gross negligence’ in relation to the over-charging and tax evasion scandals of the1990s. It has only taken thirteen years todisqualify him!” “So by those standards, it is still earlydays yet – after a mere two and a halfyears since the start of the banking crisis –for any charges to be brought againstthose responsible for a far greater scandalthat has imposed an unacceptable burdenon this State. “The wheels of justice turn exceedinglyslowly in this part of the world – especially,it seems, if you are well connected,” headded.

Wheels ofjustice grindslowly indeed!

Jim Lacey, former Chief Executiveof National Irish Bank

Discounts

specia l of fersEXCLUSIVE

for your eyes only!For information on the latest offers for IBOA members,

log on to: www.iboa.ie/members/otherservices.html

or www.iboa.org.uk/members/otherservices.html

Margaret Browne.Outgoing Union President


may 201129

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Jessie is new President“Through all the gloom and the dark-ness of the last few years,” declared theUnion’s new President, Jessie Doherty,“the one bright light has been IBOA –a David among the Goliaths but stillmore than able to hold our own. Andwhat Goliaths! Big chiefs with big egosand feet of clay! “One lesson I hope our memberswill learn from the last few years is thatin this industry above all, no-one – andcertainly not senior management – hasall the answers. If it seems wrong,challenge it. Don’t allow yourselves tobrowbeaten. Indeed if your supervisorshave to resort to bullying, then it almostcertainly is wrong,” she said. “We are looking for a new ethos, anew culture and a vision for a change!” IBOA’s new President is a Senior BankOfficial based in AIB Bank, Carrick-on-Shannon, Co Leitrim. She joined IBOAin1978 and has been a member of theExecutive Committee since April 1999. The Union's AIB Group Officer from2001 to 2007. Jessie was elected asHonorary Finance Officer in April 2007before being installed as President atthe Biennial Delegate Conference. Apart from IBOA and her husband,Kevin, Jessie’s other great passion isgolf. Her sporting successes includewinning the ladies’ competition lastyear in the IBOA Golfer of the Yeartournament at Glasson near Athlone.

Sharon has over 25 years’banking experience includ-ing twelve years working invarious Branches. More recently, she hasworked in FTB’s marketingdepartment with responsibilityfor PR and sponsorships Sharon worked on thecustomer communicationselement of the ‘Chip andPIN’ project in 2003. She hasalso worked for five years inCard services marketing withresponsibility for key market-ing and compliance messagesto the customer. First elected to IBOA’sExecutive Committee in 1995

as the Special Women’s Rep-resentative for AIB UK, Sharonwas subsequently elected asone of two Executive membersfor FTB’s Belfast and Districtconstituency. As such she has beeninvolved in the evolution ofthe Partnership Principleswithin AIB Group. A Trustee of the AIB UKDefined Benefit pensionscheme since 2008, Sharonwas elected Honorary FinanceOfficer last month in succes-sion to Jessie Doherty. Sharon’s daughter, Claire,is studying to be a teacher.

Sharon is new Finance OfficerIBOA’s new President, Jessie Doherty

The Union’s new HonoraryFinance Officer is SharonMcAuley (above) who isemployed by First Trust Bank.

quick

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These Titans of Irish bank-ing became the Titanics ofIrish banking, or perhapsmore accurately the icebergs! They have brought thefinancial services sector –and the country – to thepoint of total collapse.

Ciara Clarke, AIB Dublin

The damage inflicted onour economy, on our societyand on our collective psychehas been profound. The scarswill take a long time to heal. We need redress – be-cause… as long as thepublic are left with the im-pression that the peoplewho wrecked the economymay actually get awayrelatively unscathed, thenwe will all be viewed asguilty by association. Andthe unjustified abuse andmistreatment of bankofficials will continue.

Siobhan MacDermott,Bank of Ireland Dublin

The (creation of the) Forum(on Banking) was desirableback in 2004 when IBOAfirst proposed it: it isabsolutely essential now –to chart the recovery ofIrish banking and restorecredibility in our institutionsboth nationally and inter -nationally.

Nora-Ann O’Callaghan,Bank of Ireland Tralee

While the Minister's planmay look neat and tidy onpaper, our members can-not live on paper…Most ofus are lifers – or would liketo be! We are not here-today-gone-tomorrow ex-ecutives who are lookingfor the next big careermove.

Liam Ross, Bank of Ire-land, Outside Belfast


Sharon McAuleyHonorary Finance Officer

Tommy KennedyHonorary Secretary

Jaynette StirlingUlster Bank Belfast

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Claire WalshAIB Group Officer

John BurnsUlster Bank Group Officer

Ian PerthUlster Bank, Greater Dublin

Aisling ReillyAllied Irish Bank (GB)

Roger JamesAIB Dublin

Séamus O’KeeffeAIB South West

Kate VarleyAIB Dublin

Carmel CurranFTB Outside Belfast

Mick DurandAIB North-West

Ursula TigheAIB South

Renee DolanUlster Bank Outside Dublin

Robin BellFTB Belfast

Neasa CodyAIB South East

John O’GormanAIB Dublin

Etain Ryan LyonsAIB Dublin

Kerry ChristieUlster Bank Belfast

UlsterBankGroup

AIBGroup

The Union’s recently elected ExecutiveCommittee – which will hold office until2013 – was ratified by last month’s BiennialDelegate Conference at the Croke ParkConference Centre in Dublin. The new Committee consists of fourteenmembers from AIB Group, twelve from Bank ofIreland Group and six each from the Danske andUlster Bank Groups.


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Irene BreenBoI Dublin Retail

Stephen KennedyBoI Cork

Margaret PowerBoI Great Britain

Tom RuttledgeBoI Mullingar/Portlaoise/Dundalk

Fionnuala DuignanNational Irish Bank (Outside Dublin)

Dominic BoydBoI Belfast

Mairead KelleherBoI Limerick/Tralee

Ger RowanBoI Dublin Retail

Chris CavanaghNational Irish Bank (Dublin)

Elaine BarkerBoI Galway/Sligo/Donegal

Brendan HannonBoI Dublin Departments

Ciaran MahonBoI Dublin Departments

Liam RossBoINI Outside Belfast

Dave KeaneBank of Ireland Group Officer

Pat CarsonNorthern Bank (Belfast)

Eileen GormanNorthern Bank (Belfast)

Jessie DohertyPresident

Robert ThompsonDanske Group Officer

Moya CottonNorthern Bank (Outside Belfast)

Bank ofIrelandGroup

DanskeBankGroup

A majority of the members of the newExecutive Committee are women. One further addition to the Committee willbe the Chairperson of the recently elected YouthCommittee, which will meet soon to fill thatparticular vacancy. IBOA General Secretary, Larry Broderick, alsosits on both the Executive Committee and theOfficer Board (whose members are included inthe dotted area below).

Spectrum May 2011 Spectrum 16/05/2011 12:29 Page 35

Neasa CodyAIB South EastAn AIB employee and IBOAmember since 1973, NeasaCody has been worked inTipperary Town and Nenaghbefore taking on her currentrole as Relief Staff. Within IBOA, Neasa hasserved as an IBOA Represen-tative, as a Bank DistrictSecretary and as an ExecutiveCommittee member in thepast. She has also been onthe Union’s National Sportsand Social Committee.

Mick DurandAIB North-WestMick Durand also took upemployment with AIB in1973 – joining IBOA in thesame year. Mick’s career in AIB hasbeen based in the Galwayarea – serving in Tuam andEyre Square. As a Union activist, Mickhas been an IBOA Represen-tative and a Bank DistrictSecretary. He has also servedpreviously on the Union’sExecutive Committee.

Séamus O’KeeffeAIB South WestAn AIB employee and IBOAmember since 1974, SéamusO’Keeffe has worked in theMid-West in Shannon andLimerick City. Within IBOA, Séamushas previously served as a localIBOA Representative and as aBank District Secretary. He is now embarking onhis first term as an ExecutiveCommittee member.

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New ExecutiveCommitteeMembers

New IBOA YouthCommittee electedYoung workers face particularchallenges in this crisis andIBOA’s new Youth Committeeis prepared to raise these issuesand represent young members’concerns. The new IBOA Youth Com-mittee was ratified at therecent Biennial Delegate Con-ference and will meet early inJune to continue the work ofprevious committees. This new committee takesup office in the midst of thegreatest crisis in banking IBOAmembers have ever faced. Young workers are con-fronting an increasinglyuncertain future with seriousconcerns for their job security,pay and pension provision. Members also face anincreasingly stressful workenvironment with an aggres-sive sales culture that has notgone away. Rather than learn-ing from the past, senior man-agements –with the apparentacquiescence of Government– seem to be prepared to pushstaff even further down thesales route. IBOA Youth aims to high-light these issues to theUnion’s Executive Committeealong with the demand forreasonable and fair workingconditions and respect for allstaff and will put in placeactions to meet the needs ofyoung members. Out of this committeeIBOA Youth will elect a Chair-person to take a seat on theExecutive of the Union.

This new committee willprioritise a number of areas ofwork including encouragingcolleagues to join IBOA, en-couraging young members toparticipate in the Union andbecome IBOA Representativesand ensuring that youngworkers stand up for them-selves and with the support ofIBOA do not accept or tolerateany form of bullying orinappropriate pressure. IBOA General Secretary,Larry Broderick, is keen tobegin working with these youngactivists to encourage evengreater youth participation inthe Union’s structures.

The new Youth Committeeconsists of:

AIB GroupCiara ClarkeDerek MacManusRebecca CraughwellAlan Challis

Bank of Ireland GroupImelda BoyleZoe O’Neill(plus two more vacanciesto be filled shortly)

Ulster Bank GroupKieran McCannSuzanne Savage

Danske Bank GroupMichelle Gibson(plus one more vacancyto be filled shortly)

Get upStand up

Neasa Cody

Mick Durand

Séamus O’Keeffe


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CONFERENCE IN PICTURESTop left: OutgoingPresident, MargaretBrowne, presentsthe chain of officeto her successor,Jessie Doherty.

Centre (right): UnionGeneral Secretary,Larry Broderick, isinterviewed for RTETelevision News.

Bottom left: IBOA’soutgoing President,Margaret Browne,applauds one ofthe contributionsfrom the floor.

All photos: TommyClancy.

Top right: SharonMcAuley addressesthe delegates.

Bottom right: ElaineMcRoberts andEileen Gorman (bothfrom Northern Bank)pay close attentionto the proceedings.

All photos: TommyClancy.


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sports: socialIBOA GOLFER ofTHE YEAR 2011

Men’s and Ladies’Stableford Competition

Glasson, Athlone, Co. WestmeathFriday 19/Saturday 20 August 2011

Entry Fee: €160**includes two nights’ bed & breakfast

and dinner and presentation ofexcellent prizes on Saturday night

IBOA Golfer of the Year 2011

Name..........................................................................................................

IBOA Membership No./Staff No.:...........................................................

Employer: ..................................................................................................

Branch/Department:..................................................................................

Address for Correspondence:...................................................................

....................................................................................................................

....................................................................................................................

....................................................................................................................

Men’s/Ladies’ Competition (delete as applicable)

Handicap:................... (Maximum for men: 20; for ladies: 36)

Cheque enclosed: €...............

Please return to Anna or Louise, Sports and Social Department, IBOA The FinanceUnion, IBOA House, Stephen Street Upper, Dublin 8. Closing Date for Receipt ofEntries:Friday 12 August 2011.

Good day, Irene Irene Breen (above) has been elected asthe Union’s new co-ordinator for sportsand social events. Members can contactIrene, c/o IBOA House, Stephen StreetUpper, Dublin 8.

Make a date…

Go Ape atthe Zoowith IBOA On production of your IBOA member-ship card, you will be entitled to freeadmission at the main gate for twoadults and four children (or one adultand five children) on the three IBOAfamily days at the following zoos:

Dublin Zoo: Saturday, September 3Fota Park, Cork: Saturday, September 3Belfast Zoo: Saturday, October 1


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THe IrISH BankerS’ CluB

IBOA HOuse, stepHen street upper, DuBlIn 8

Bar openInG HourS:

Tuesday-Saturday – 4.30pm till late.

Sunday-Monday – closed.

Friday May 27:1st Prize – two weeks holiday for two

to Croatia

Friday June 24:1st Prize – two weeks holiday for two

to French Riviera

thursday July 28:1st Prize – two weeks holiday for two

to French Riviera

Each Month2nd Prize: E300,

3rd Prize: E250 4th Prize: E200

Draws at 9pm. Bar Food each night 5pm-10pmplus Big Attendance Prizes on

Monthly Draw Nights

UPCOMINg CLUBDRAw NIgHTS

Results of recent Bankers Club draws are posted on the IBOA websites:www.iboa.ie/services/sportsandsocial/bankersclub.html

www.iboa.org.uk/services/sportsandsocial/bankersclub.html

Special Offer 2011Club members, their friends or family members can book the Club for

any party or social event for just ¤100 during May, June, July and August

DON’t MiSS Out – BOOk tODAy!

CLUB BOOKINGS

Name:................................................................

Male/Female (delete where applicable)

Employment:.....................................................

Branch/Dept:.......................................................

Bank Account Details

Bank & Branch:.................................................

NSC:....................A/c No................................. hereby authorise you to debit my account with the annualsubscription for Club membership. I agree to be bound byhe Rules of the Club and accept the appropriate annualdjustment when applicable. Notification will be forwardedn writing if I wish to cancel this mandate.

Signed:.................................Date:.............................

Please return to Michael Martin, Honorary Secretaryat the address above.

New members welcome. Join now and enjoyfree membership until September2011 – costthen only ¤20 per annum.Facilities include: • Special room hire rates• Bar and meeting room facilities.• Catering and DJ facilities available• Big screen for all sporting occasions

Don’t miss out – Join today!Copy and complete the application form belowand return it to Honorary Secretary, MichaelMartin at the address above.

CLUBMEMBERSHIP

• Reduced Room Hire Rates• Birthday Parties• Going Away Nights• Table Quizzes, Race Nights• Parties and Christenings• Catering and DJ Facilities Available• We can cater for numbers up to 120• Full Bar Licence – Extension Available

• Why not book or call in and look around?

Call 01-4758970 10am-12noon or after 5pm.

THE PERFECT PARTY VENUE

THE PLACE TOPARTY IN 2011

APPLICATIONTO JOIN CLUB


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workplace: news

The announcement that AIB Groupplans to axe at least 2,000 morejobs by the end of 2012 – on top ofa similar number of jobs that havealready been shed by AIB – hasstunned many employees, accordingto Larry Broderick, General Secretaryof IBOA The Finance Union. However, the lack of detail in the initialannouncement and in the subsequentengagement with IBOA has only served toadd to staff’s sense of uncertainty abouttheir future. IBOA has asked for greater trans-parency and clarification about the Bank'sprecise intentions in the interests of bothstaff and customers. “Our members in AIB are angry thatthey are being made to pay the price forthe reckless mismanagement of the Bankby an elite group of bosses – many ofwhom have long since left the institutionwith extremely generous golden hand-shakes to see them comfortably intoretirement,” said Mr. Broderick. “The ordinary staff in AIB are in no wayresponsible for the Bank’s disastrous

predicament. But it appears that many ofthem will now be sacrificed in a crudeattempt to resolve it. “These staff are more than collateraldamage: they are hard working men andwomen with families who are facing a verybleak future with few immediate opport -unities for re-employment within thefinancial service sector in this country,” headded. The Union has begun a round oflobbying of key figures in the financialservices sector in order to protect themaximum number of jobs in AIB.

Independent Mediators’ ReportsIn a related development, the twoindependent mediators who were jointlyagreed by the Union and the Bank tofacilitate negotiations on an outlineframework of principles to underpin anysubsequent agreement on the restructur-ing of AIB have both issued interimreports to the Bank management and theUnion. Mr. Mark Connaughton, SC, coveringthe Republic of Ireland, and Mr. Liam Deane,covering AIB UK, have each outlined a

number of core principles to govern theprogress of future discussions. While they acknowledge the differingapproaches of the parties to the relatedissues of job reductions and severanceterms, the two mediators note that thebest way to achieve a voluntary reductionin staff numbers is to have reason ableseverance terms in place. The two mediators have also recom-mended that further discussions on theseissues should be in line with the Partner-ship Principles previously agreed betweenIBOA and AIB. They advocate a voluntary –as opposed to compulsory – approach tojob reductions on terms to be negotiatedwithin current industry norms. The mediators have also recom-mended that immediate discussions takeplace on the issue of culture. Noting that little progress has beenmade on the issue of contractual pay, themediators recommend a review withinthree months, unless there is greater clarityabout the Bank’s plans. They also urge further negotiations onsimilar issues affecting call centre staff tobe initiated within three months.

… as AIB proposes massive job cuts

Staff left in the dark…

AIB Group Executive Chairman, David Hodgkinson, announces proposals to make over 2,000 more staff redundant(Photo: Photocall-Ireland).


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“The excessive rewards which continueto be paid to those at the top of the bank-ing sector for leading these institutions tothe verge of bankruptcy beggars belief,”said IBOA General Secretary, Larry Broderick. “The justification for these paymentsis that they are contractual entitlementswhich must be honoured. Thousandsof our members also have contractualentitlements to pay awards which arefar more modest in nature. But the Bankhas steadfastly refused to honour thesecontractual awards. “In AIB's Call Centres in Swords, Naasand Belfast, staff were deprived of their con-tractual entitlements just before Christmas.These staff who are on low pay rates areextremely angry at this revelation. “The injustice in this situation is com-pounded by the fact that this revelationcomes just one week after Mr. O’Doherty'ssuccessor announced his intention tomake over 2,000 staff redundant,” Mr.Broderick continued. “Restructuring is not only about thenumber of staff leaving the bank; it isalso about ensuring that the morale of thestaff who will remain is maintained so thatthey can give of their best to promote therecovery of the business. “Every revelation of this culture ofexcess at the top is a hammer blow toordinary banking staff. That is why whenwe meet the Minister for Finance shortly,

we will be pointing out that it is notenough to restructure the financial sectorat the institutional level, we also need aradical transformation of the culture ofbanking so that in future awards are givenfor behaviour which underpins prudentialvalues and customer service rather thanthe current situation where recklessness isincentivised and failure rewarded.

“In the meantime, frontline staff willonce again have to bear the brunt of thegeneral public’s anger – even thoughthey are in no way responsible for theformer Chief Executive’s remuneration justas they are in no way responsible forthe reckless decision-making that causedthe current catastrophe,” concluded Mr.Broderick.

Staff in AIB and other domesticbanks remain shocked and angry atthe recent revelation that AIB Group’sformer Managing Director receivedtotal payments of over ¤3 millionlast year on his premature departurefrom the Bank.

Hyho Travel provides arange of special deals forIBOA members. Check the IBOA web-site for details of the latestsoffers on holidays for desti-nations worldwide, as wellas specialised golf trips andsports packages. For every booking madeon the Hyho site or via ourdedicated call centre, Hyho

Travel will donate between10% and 20% of its agencycommission to a charity,school, club or communityorganisation of your choiceat no extra cost. Check the latest offersthrough www. iboa.ie/s/7 orwww.iboa.org.uk/s/7/. You’ll need your IBOAmembership number tolog on!

AIB’s former Managing Director, Colm Doherty(Photo: Eleanor Keegan/Photocall-Ireland).

Bank staffshockedby €3mpay-off

to formerAIB chief


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workplace: news

Bank of Ireland Governor, Pat Molloy (right) addresses the Bank’s recent Extraordinary General Meeeting with Group ChiefFinancial Officer, John O'Donovan (left), and Chief Executive, Richie Boucher (centre) (Photo: Sasko Lazarov/Photocall Ireland).

Staff in Bank of Ireland were shockedand disappointed at the outcomeof the recent investigation by theDepartment of Finance which hasrevealed that bonuses worth overE66 million have been paid to anelite group of the Bank’s seniorexecutives in recent years. Over 1,500 Bank of Ireland staff wroteto the Bank’s Governor, Mr. Pat Molloy,expressing concern at the revelations in thefollowing terms:

Dear Mr Molloy I am writing to you to register myanger and frustration following the recentannouncement about the payment ofbonuses to an elite group within Bank ofIreland. As a loyal hard working employee,I believe it is vitally important that Bank ofIreland remains independent and viableand returns to a profitable position as soonas possible.

To this end, my colleagues and I havemade a number of sacrifices at significantcost to us. These included changes toour pension arrangements, acceptance ofa pay freeze and more importantly non-payment of performance related bonuses. We accepted the view of our ChiefExecutive, Mr Boucher, that it was importantfor everyone employed by Bank of Irelandto share the burden at this crucial time. We now discover that the majority ofstaff who are vital to the success of thebusiness are the only ones that have toshare the burden. These are the same staff

who face the public on a daily basis and areworking extremely hard to build customerconfidence in our business. It is outrageous that these bonuseshave been paid. I would urge you in yourcapacity as Chairman of the Court to insistthat no further payments are made to thiselite group until such time as Bank of Irelandis in a position to honour the entitlementsof all staff.

Many Bank of Ireland staff have alsotaken further actions in protest againstthe Bank’s behaviour by withholding co-operation from performance reviews – onthe grounds that the awards that shouldhave been paid to ordinary staff for meet-ing performance targets have been with-held by the Bank – while those for theexecutive elite have been paid. Many IBOA members in the Bank arealso refusing to work unpaid overtime –since the savings accruing to the Bank arebeing used to pay executive bonuses.

Staff angry at extraordinary payments to eliteBonus of contention rocks BOI


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IBOA members in Ulster Bank arecurrently ballloting on a wide-ranging recommendation fromindependent mediator, Mr. MartinKing – covering a range of mattersincluding pay for 2011, as well as anumber of issues arising from thecontentious 2009 contract offer. Thisis a significant development for allUlster Bank staff represented byIBOA for collective bargaining.

The recommendation deals with:– Pay 2011;– Matters relating to contracts issued in

2009, subsequently, and those to beissued in the future;

– Collective bargaining and legal cases;– Working hours and overtime payments;– Pensions;– Dublin allowance;– Holidays.

In summary Mr King recommends:– Revised 2011 contracts to be offered

to staff who did not accept the 2009contracts to include:

– Payment for past and future PEF andbenefit funding;

– Pensionable pay limit to be appliedwith effect from 1 January 2010 andin lieu of the accrual rate reduction(1/60ths to 1/80ths) applied in 2010;

– Changes to clauses in 2009 contractsand in subsequent contracts issuedand future contracts;

– Pay 2011 payment based on a revisedpay matrix;

– Clarity around working hours for pres-ent and future employees;

– Clarity in respect of Dublin Allowanceentitlements;

– Determination of overtime and holidayentitlements;

– Proposal for a collective settlementagreement;

– Re-enforcement of the proceduralagreement and recognition betweenIBOA and Ulster Bank; and

`– A basis for resolving outstanding legalcases.

The recommendation is intended to applyin both Northern Ireland and the Republicof Ireland. The mediator’s report is a lengthydocument and is available for members todownload from the Union websites –www.iboa.ie and www.iboa.org.uk. The Union’s negotiating team in UlsterBank considers that Mr. King’s recommen-dation marks a significant breakthrough indealing with many of the issues arisingfrom the 2009 contracts. IBOA’s Ulster BankExecutive Committee has put Mr. King’sreport to a ballot of all members in UlsterBank with a positive recommendation.

BackgroundIBOA and Ulster Bank have been engagedin negotiations about pay for 2011 sinceearly this year. As part of the agreed process,Martin King was engaged as an independentmediator to help the parties to try to reachagreement. In the course of his work, Mr.King expressed serious concern that theissue of the 2009 contracts was causing adifficulty for both sides, which went be-yond the matter of pay 2011 – with staff

employed on new and old contracts beingtreated differently. Accordingly Mr. King suggested thatboth sides should explore the potential toresolve the totality of matters of differencebetween them in a positive and constructiveway –without prejudice to the legal casespending between them. While the two sides initially approachedthis suggestion with mixed views, positiveengagement took place under the mediator’sauspices – leading eventually to compro-mises by both parties. Following a period of intense discussionsbetween the parties under Mr. King'sguidance, the mediator indicated thatsufficient progress had been made to en-able him to issue a recommendation.

Mediator's RecommendationAlthough Mr. King’s proposals are notideal for either the Union or the Bank, theyrepresent significant progress – since theydeal with the fundamental issue of the2009 contract and the resulting difficulties. In making his proposal, Mr King hadaccess to the respective legal teams deal-ing with the various cases in both NorthernIreland and the Republic which are beingsupported by the Union.

IBOA Ulster Bank Executive Committee

Breakthrough in Ulster?Ulster Bank members ballot on mediator’s recommendation on wide range of issues


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workplace: news

Maldron Hotels is a major force inIrish hospitality, with ten hotelsnationwide – five in Dublin andone each in Cork, Galway, Limer-ick, Portlaoise and Wexford – withan eleventh in Cardiff, Wales.

The Maldron Group is nowcomplemented by eleven PartnerHotels offering great value andwarm hospitality.

The facilities at many of ourhotels include Club Vitae leisureclubs, spacious guest rooms,meeting rooms, free internetaccess and modern cuisine in StirRestaurants and Café Bars. Maldron Hotels is delightedto offer members of IBOA – TheFinance Union special rates (subjectto availability).

This offer is available in any ofthe eleven Maldron Hotels or theeleven Partner Hotels listedbelow.

Maldron Hotel arnell Square,Dublin 1

• Maldron Hotel Smithfield,Dublin 7

• Maldron Hotel Cardiff Lane,Dublin 2 (4*)

• Maldron Hotel Citywest, Dublin 22• Maldron Hotel Tallaght, Dublin 24• Maldron Hotel Galway• Maldron Hotel Portlaoise

Maldron Hotel LimerickMaldron Hotel WexfordMaldron Hotel Cork

Belvedere Hotel ParnellSquare, Dublin 1Finnstown Country HouseHotelShannon Oaks Hotel, PortumnaClare Inn Hotel and SuitesBreaffy House Resort,CastlebarClayton Hotel, Galway (4*)Citywest Hotel, Conference,Leisure and Golf Resort (4*)

• Diamond Coast Hotel,Enniscrone, Sligo (4*)

• Portlaoise Heritage Hotel (4*)• White’s of Wexford (4*)• Heritage Golf and Spa Resort,

Killenard, Co.Laois (5*)The full list of rates can be accessed onthe IBOA websites at www.iboa.ie orwww.iboa.org.uk

Special rates for IBOA membersat 22 Maldron Hotels and Partner Hotels


may 2011

IBOA members in Northern Bank have voted bya substantial margin to accept a pay offer –secured by the Union’s Northern Bank negotiat-ing team – which provides an overall increase ofbetween 3.25% and 5.5% for eligible staff.

The increase consists of twoelements – a non-consolidated partwhich takes the form of a once-offcash payment; and a consolidatedpart which is pensionable and iseither equal to or greater than thepay increase achieved in NorthernBank last year. IBOA Senior Industrial RelationsOfficer, Gerry Hanna, said thatalthough these salary negotiationstook place in an extremely difficultenvironment for the financial servicessector, the Union had developed avery clear objective before enteringtalks with the Bank’s senior man-agement. “Our aim,” he said, “is to securejobs within the banking industryand to seek to improve the termsand conditions of our members.” “With the strategic relationshipagreement between IBOA andNorthern Bank already under-pinning a significant commitmentto job security for our members,”Gerry Hanna explained, “the Unionsought to improve on the terms oflast year’s pay agreement whichwas overwhelmingly accepted byour members.” “The new pay offer – which theUnion secured in talks with theBank’s senior management – metthat objective,” said IBOA’s DanskeGroup Officer, Robert Thompson. “The Union’s Northern BankExecutive Committee, therefore,recommended the terms foracceptance in the ballot of ourNorthern Bank members. “The scale of the response fromour members has been quiteemphatic,” he added, “providinganother decisive endorsement of theUnion’s efforts.”

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workplace: news

Isn’t it

time you

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Northern Bankmembers back2011 pay deal

National Irish Bank CEO,Andrew Healy

Talks proceedat National IrishThe Union is engaged in continuingtalks with the senior managementat National Irish Bank on rebuildingrelationships after difficulties thatarose last year over the Bank’sunilateral changes to the staff’spension arrangements. Following a recent meetingbetween IBOA General Secretary,Larry Broderick, and NIB ChiefExecutive, Andrew Healy, the twosides have engaged in wide-rang-ing talks on a number of matters –including the recent Labour Courtrecommendation on the pensionsissue as well as the Bank’s proposalsfor changes in its policy on MCRand a new procedural agreementbetween IBOA and the Bank.


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workplace: news

IBOA secures benefits forIrish Nationwide membersOne of the first groups offinancial sector workers tofall victim to the emergencylegislation introduced inthe final weeks of the pre-vious administration in theRepublic of Ireland werestaff in Irish NationwideBuilding Society. The established norms oftimely consultation and nego-tiation were abandoned whenthe National Treasury Manage-ment Agency (NTMA), actingon behalf of the State, decidedto transfer the INBS depositbooksacross to Permanent TSB

and with them, the staff whohad previously been engagedin servicing them. Relying on the emergencypowers contained in the CreditInstitutions (Stabilisation) Act,the NTMA effectively short-circuited the normal industrialrelations machinery in pushingthrough the rapid transfer ofassets from one institution tothe other. A similar situation arose asthe Anglo Irish deposit book –and accompanying staff –weretransferred across to AIB. However, IBOA managedto ensure that the interests ofthe transferring staff weretreated as more than an after-thought – following somelast-minute bargaining with

the senior managements inthe relevant institutions. Union General Secretary,Larry Broderick, was particu-larly concerned to ensure thatINBS staff would not suffer anyloss of rights or entitlements intrans-ferring to Permanent TSBwhile at the same time insist-ing that the terms and condi-tions of AIB staff would not beadversely affected by thetransfer of Anglo Irish person-nel into the organisation. The Union achieved both ofthese objectives. Members inIrish Nationwide have securedparity of treatment with theirPermanent TSB colleagues interms of the impending re-structure of the Bank. The transferring staff alsohave access to a voluntaryredundancy programme whichprovides for a lump sum of7.25 weeks’ pay for each yearof service (inclusive of statutoryentitlements). The total lumpsum payment is capped atthe equivalent of 2.75 years’annual salary.

Agreement was finally reachedin protracted talks betweenIBOA and a number of employerson the transfer of staff to IBMfollowing the Bank of Ireland’sdecision to award a major ITcontract to IBM. While a number staff in HPsubsidiary, HP CDS, Bank ofIreland Asset Management,Bank of Ireland Global Marketsand Bank of Ireland SecuritiesServices had voted to acceptthe transfer terms negotiatedby the Union, negotiations onbehalf of the largest group oftransferring staff from HP –where around 200 employeeswere involved –were finalisedunder the auspices of inde-pendent mediator, Mark Con-naughton, SC. The final terms for thetransfer were then endorsed ina ballot of the members work-ing on the Bank of Irelandcontract in HP. While some teethingproblems have arisen since thetransfer, the Union remainsdetermined to ensure that theterms of the transfer agreementare honoured in full.

Agreementreached ontransferof BOI ITcontractto IBM

TAKE A BREAK

Special discounts are available for IBOA members onhotel breaks throughout Ireland.

Check out either of the IBOA websites on www.iboa.ie/members/otherservices or www.iboa.org.uk/members/otherservices for further information on the specialoffers currently available to IBOA members.


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of chocolate could have as power-ful an anti-clotting effect on theblood as taking aspirin.

For your brain…Chocolate is one of the richestsources of magnesium – a mineralessential for brain health, accordingto the Journal of Medicinal Food. Research at Cornell Universityin New York also found it containsan antioxidant called epicatechin thatmay protect against the amyloidplaques which cause Alzheimer’sand other brain diseases. Research at the WheelingJesuit University in West Virginiasuggests chocolate can also boostmemory, attention span, reactiontime and problem-solving skills byincreasing blood flow to the brain.

For your immune system…A Japanese study published in theBritish Journal of Cancer last yearstates phenolics – naturally occur-ring antioxidants found in choco-late – boost the immune system. Another 2009 report by theCancer Research Society of Hawaiinotes that a further distinctive

ingredient – procyanidins – wascredited with the same effect inanimal studies.

For stress control…Eating 40 grams of dark chocolateevery day for two weeks reducesstress hormones in those withmoderate to high anxiety, accord-ing to a study published in theAmerican Chemical Society’sJournal of Proteome Research.

And for longevity…A study of nearly 8,000 Harvardgraduates conducted over 18 yearsrevealed that those who atechocolate lived almost a yearlonger than those who did not. The bad news is they were allmen – certain benefits of chocolateare believed to be more effectiveon males than females, for reasonsno scientist has yet figured out. A summary of the healthbenefits of good chocolate and alist of published scientific studiescan be found in The ChocolateTherapist by Julie Pech.

Anthea Gerrie/The Interview People

may 2011

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life: style

Here is the latest research onthe health benefits of chocolateswith 70% cocoa solids or higher.

For your heart…Research undertaken at the Univer-sity of Aberdeen shows that fla-vanols, a form of antioxidantpresent in chocolate with a highcocoa mass, help prevent the acti-vation of platelets in the blood,which contribute to heart disease. Another study conducted inDusseldorf and at the University ofCalifornia at Davis suggests con-sumption of flavanols can reversesome of the artery damage causedby smoking. And last year Professor CarlKeen of the University of Californiareported that eating small amounts

The news we’ve allbeen waiting for:

Eat chocolateand live anextra year!Did you know that a couple of squares of

good-quality dark chocolate contain nearlyfour times the antioxidants of a plum or a handfulof Brussels sprouts? writes Anthea Gerrie.

Forget love…I'd rather fallin chocolate!


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Security offer forIBOA members

¤300 off wire-freemonitored alarms

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• Protection 24 hours a day, 7 days a week• Extensive range of security solutions to suit your needs

Order now on 1850 500 900or log onto www.eircomphonewatch.ie

Remember to ask your PhoneWatch salesconsultant about your IBOA discount


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may 2011

The film is based on the Marvelcomic series – which is in turninspired by Norse mythology. Thekey words in that sentence are“comic” and “mythology.” Thethree missing words are “factual,”“historical” and “documentary.” Nonetheless, the Council ofConservative Citizens has takenexception to the casting of IdrisElba – one of the stars of the UShit television series, The Wire, asHeimdall – the Marvel Comicscharacter based loosely on theNorse god, Heimdallr. Of course, Marvel Comics hadalready taken many liberties withNorse mythology in developing theThor series –which is principally setin modern America as Thor mustlive among mortals to regain favourwith his father, Odin the ruler ofAsgard, the home of the gods. Branagh’s film adaptation takesa few more liberties by abandoningThor’s secret identity which was anintegral part of the storyline in thecomic series. By dispensing withthe secret identity, Branagh canexploit the comedic potential of adivine “fish out of water.” Despite his classical Shake-spearean pedigree, Branagh getsinto the comic-book spirit of tongue-in-cheek escapism to produce ajolly romp, unless of course you area pedant, a racist or both!

Idris Elba as Heimdall in Thor.

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flick: pick

BELFAST

Virtually half-price tickets

Adult ticket: £3

To purchase your tickets

contact IBOA @ 02890-200130

A Norse ofa differentcolour“Whatever it is, I’m against it!,” sang QuincyAdams Wagstaff (aka Groucho Marx) in the comedy,Horse Feathers. But for some people, it is themantra they live by – like the members of theso-called Council of Conservative Citizens, basedin Minnesota, who have urged a boycott ofKenneth Branagh’s new movie, Thor, because oneof the mythological Norse gods is played byBritish actor, Idris Elba, who is black.

Chris Hemsworthas Thor.

Natalie Portman inThor.

Anthony Hopkinsin Thor.

Kenneth Branagh,director of Thor.


may 2011

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stage: right

Excellent worldwide travelinsurance at discount rates for

IBOA members & their families

Family members may travelindependently of one another

For further details, please callPrestige Underwriting Services

on 00-353-(0)-49-4371505

It is almost inconceivable that in the xxxxyears since George Bernard Shaw wrotePygmalion, it has never been performed atDublin’s Abbey Theatre. But it has beenwell worth the wait – because AnnabelleComyn’s production of the classic is quitestunning in many respects – not least, theall-round performance of Charlie Murphyin the central role of Eliza Doolittle. The storyline is familiar to most people- having popularised through the musical,My Fair Lady, and especially its film versionwith Audrey Hepburn and Rex Harrison. It may also be cited as the inspirationbehind another morality tale which turnson a wager – Trading Places with EddieMurphy and Dan Aykroyd. But with another alleged rags-to-riches

– or rather commoner-to-royal – romancecapturing the imagination of the world’smedia – if not all of the world’s citizens –the Abbey seems to have chosen to tapinto the public mood to mount its firstproduction of the classic Shaw satire on

class, gender and the obsession withappearances – in which a stuffy andpedantic phoneticist, Henry Higgins(Risteárd Cooper) bets his colleague,Colonel Pickering (Nick Dunning) that hecan transform a lowly Covent Gardenflower girl into a duchess. The experiment not only reveals acallous disregard by the two “scientists”for its emotional and psychological impacton his ‘guinea pig,’ it also provides manyopportunities for Shaw to explore varioussocial stereotypes and the quite ludicrous

assumptions that underpin and sustainthem – with the victims often complicit intheir own exploitation by accepting thevery narrow constraints within which theyare expected to exist. The play’s core message about thedeceptiveness of appearances is also veryrelevant in the wake of our illusory boom –in which many of the so-called great andgood in our society who have been celebratedin an increasingly vacuous media – haveturned out to be far less deserving of respectand praise.

Shaw firehit forAbbey

Charlie Murphy as Eliza Doolittle in George Bernard Shaw’s ‘Pygmalion’ at Dublin’sAbbey Theatre.


movement in the US and desperatesetback of Martin Luther King’sassassination: Dr. King has just been shot/And the sirens’ long melody/Singing‘Savior Pass Me Not Ain’t it strange the way we’reignorant/How we seek out badadvice/How we jigger it and figureit/Mistaking value for the price In The Afterlife,Simon heads offto meet his maker but encounters abureaucratic kind of paradise, whileDazzling Blue is a thoughtful lovesong about a mature relationship. Another song of relationships,Love and Hard Times opens withan unlikely prelude as God and his oneson paid a courtesy call on earth,as Simon describes God and Jesuson a father-and-son excursion inwhich the restless older deity hurriesthe younger along because thereare galaxies yet to be born, beforedismissing the human race as slobs. On the blues Love Is EternalSacred Light, Simon again reflectson the divine being – this time asall-knowing but with a rather mis-understood sense of humour. Besides suggesting that the “bigbang” was part of an elaborate

joke, Simon imagines God behindthe wheel of a brand new, pre-owned '96 Ford and frustrated atthe absence of good pop musicstations on the radio any more. In Questions For The AngelsSimon wonders If every human onthe planet and all the buildings onit/Should disappear/Would a zebragrazing in the African Savannah/Careenough to shed one zebra tear? Inhis reflections on how humanityhas lost its way emerges the imageof a homeless “pilgrim” in Brooklynpassing a billboard that catches hiseye: It's Jay-Z/He's got a kid on eachknee/He's wearing clothes that hewants us to try. The centerpiece of the album isthe title track, a country-tinged songwhich reflects on America’s recenthistory recalling the assasination ofMartin Luther King and then read-ing bedtime stories to his children:“Will it have a happy ending? Maybeyeah, maybe not/I tell them life iswhat you make it.” This is a beautifully arrangedalbum – though the pace may bemore measured with age, Simon’sinstinctive musicality and wordplayis undminished.

Veteran virtuoso –Paul Simon: stillamazing after allthese years!

Catch him inDublin (June 20),Cork (June 21),Nottingham (June23), Glasgow (June24), Bournemouth(June 27), LondonHammersmith(June 28), Birming-ham (June 20) andManchester (July3).

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Special Offer forIBOA Members

¤1 off every CD youbuy when you visitwww.cdwow.ie/iboa

music: maestro

Paul Simon’s new album,So Beautiful or So What,

is his best work in decades,or so he believes himself. With a lengthy back catalogueof staggering quality, which hasincluded two Grammys for “Recordof the Year” and three for “Albumof the Year,” that is quite a claim.In fact, the 69-year-old New Yorkerwho tours these islands in June maynow only be reaching his prime. Co-produced with Phil Ramone,So Beautiful or So What is his firstalbum of original material for fiveyears. The opening track is GettingReady For Christmas Day, a stomp-ing folk-rock piece with a clatteringmelody and lyrics which includelines from a Christmas sermon bythe Reverend J. M. Gates. In the title track he recalls thetortured struggle of the civil rights

Paul Simon’s bestwork in decades?

So Beautifulor So What


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50

idea: log

CHAPTERSBOOKSTORE

Parnell Street Dublin 1

10%discount

for IBOA

members

Show your IBOAmembership cardat the pay point

CLAIMING OUR FUTURE IDEAS

‘Reducing Income Inequality’Bailey Allen Hall, N.U.I. Galway Saturday 28th May 2011.

11.00am to 17.30pm Registration from 10.00 am.

Claiming our Future is organising its second national discussion for people to share their ideas on re-ducing income inequality. At our first event in the RDS last October we identified eight policy priorities.One of these was to ‘Achieve greater income equality and reduce poverty through wage, tax andincome policies that support maximum and minimum income thresholds’. This second event willdebate how we could make progress on this policy goal.

Our second national discussion aims to:• Share information, knowledge and perspectives on income inequality and strategies to address

this issue. • Stimulate and support ongoing work and campaigns across the country to debate this issue and

to build support for policies to reduce income inequality. • Identify a small number of demands that could be made to lever some political engagement with

the challenge of income inequality. The event will involve discussion on the principles that could guide our approach to income equality,on the income tax and welfare policies that could be implemented to reduce income inequality andon the local action that could be taken to make progress on this issue.

For more information log on to www.claimingourfuture.ie/

Retired bank official, BrendanFullam, considers the currentstate of the banking industryagainst the backdrop of theday-to-day practices and stan-dards that applied during theera of traditional banking. Read: Brendan’s Reflectionson Irelandon the IBOA websitesat www.iboa.ie/media/opinion.html or www.iboa.org.uk/media/opinion.html

Brendan’sReflections

Congress GeneralSecretary, DavidBegg (left), withRonald Janssen,economist with theEuropean TradeUnion Confedera-tion, and IBOAGeneral Secretary,Larry Broderick atthe recent lunch-time lecture inIBOA House (Photo:Paula Geraghty).

Race to bottom across EUA co-ordinated move is under wayacross Europe to control andsuppress wage increases by decen-tralising negotiations, by makingpay rises conditional on productivityonly and using public sector paycuts to drive down private sectorwages,according to Ronald Janssenof the European Trade Union Con-federation (ETUC). This development takes noaccountof inflation, of the need toreduce inequality or of the right ofworkers to bargain collectively.Ultimately it will depress domesticdemand even further with majornegative consequences for jobs.

This approach is in effect tryingto export Germany’s pay policy forthe last decade to the rest of Europe.As German workers’ wages havefailed to keep pace with inflation,they have been forced to take apay cut each year in real terms. The ETUC is seeking to includea number of clauses to safeguardwages and working conditions inEurope against any such race tothe bottom and to prioritise theinclusion of mechanisms to reducesocial inequality. The ETUC economist was givingan ICTU lunchtime lecture in IBOAHouse recently.


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SPECTRUM 51may 2011

Great savinGs

for IBOAmembers

& their

families

• 10% off glasses, contact lenses and designer sunglasses, plus FREE eye test

• FREE 2nd pair of glasses (including bifocal and varifocal lenses)

• 10% off laser eye surgery, FREE consultation, plus 10 months interest-free credit

• 10% off cosmetic treatment, FREE consultation, plus 10 months interest-free credit

For more information, check the IBOA websites:

www.iboa.ie/members/otherservices/iboaplusdiscount.html or

www.iboa.org.uk/members/otherservices/iboaplusdiscount.html

These offers are exclusive to IBOA members – so you’ll need

your IBOA membership number to access the website.


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SPECTRUMmay 2011

For all its unparalleledsuccess in the financial

services sector worldwide,Goldman Sachs is probablynow one of the most reviledbanks in America – which isunusual in a country whichgenerally lauds and applaudssuccess. Despite coming out of thecurrent financial crisis with thehealthiest financial returns, Goldmanis labouring under an extremelytarnished public image. This contradiction is explored ina new book by William Cohan, calledMoney and Power: How GoldmanSachs came to rule the world. Once a model of ruthlessefficiency, Goldman Sachs had amatchless reputation as the world’spremier investment bank – whoseexecutives were not only soughtout to advise the rich and famouson five continents – but also filledvery senior roles in the US TreasuryDepartment on a continuous basis. Goldman was the marqueebrand – and everyone, it seems, hadto share in the hype. However, according to Cohan,Goldman has no secret formula –even though the Sumitomo Bankof Japan offered $500m in 1987just to be a “sleeping partner, withno votes and just to learn.” The vicious power strugglesand operational gaffes he describesare not so far removed from thenarratives in his earlier books onBear Stearns and Lazard. But theGoldman mystique enabled theBank to cherry-pick talented staffand reward them accordingy. “Nowonder they believe their own bull-shit,” Cohan observes dryly. Until the most recent financialcrisis, that belief was shared bymany others. However, the sub-prime mortgage crisis marked acrucial turning point. Almost at astroke Goldman Sachs was trans-formed into the poster boys for thedeceitful double-dealing thatplaced the pursuit of short-termgain before ethics and integrity. Throughout its 150-year historyGoldmans has always tried to beon both sides of a deal – by, forexample, advising a company on ashare or bond issue while at thesame time advising pension fundson buying the same shares or bonds.

This approach ran into majordifficulties when Goldman tried tomarket assets – backed by “toxic”sub-prime mortgages – to its clientswhile at the same time effectivelybetting that these assets would gobad – thereby exacerbating the

Goldman SachsChief Executive,Lloyd Blankfein(above) and theGoldman Towerin New York.

book: worm

Lip-synchingcapitalismGoldman Sachs – no longerloved but still prospering!

difficulties in the housing marketthat led to the global meltdown.“They didn’t create the bubblebut they made things a whole lotworse,” says Cohan. So all the while the bank con-tinued to sell mortgage-backedsecurities to investors, Goldmantraders were receiving commissionsfrom other clients to bet againstthe housing market. This double-dealing not onlysoured relations with its clientsbut also led to calls for the bankto be investigated by the JusticeDepartment for selling financialproducts that its own bankers de-scribed as “shitty.” The fact thatGoldman was richly rewarded inbillions for betting that theAmerican property market wouldcollapse – while some of itsbiggest clients, like Bear Stearns,Lehman Brothers and AIG crashed– has only served to inflame thesense of public outrage. Goldman’s Chief Executive,Lloyd Blankfein, appears to findthe uproar difficult to understand–adopting what Cohan describesas a “disingenuous” position.“The political environment meansthat they would rather appear tobe dumb and stupid than to behave been smarter than everyoneelse,” says Cohan. So even though Blankfein hasbecome a pantomime villain forthe American public and Gold-man’s reputation is severely dam-aged, Cohan believes that thebank will continue to prosper –not least because many of itsrivals have been so hamstrung oreven destroyed completely as aresult of the financial crisis –which Goldman, itself, helped tofuel and from which it, too, hadto be rescued in 2008 – partly bythe plutocrat, Warren Buffet, andpartly by the US Treasury. During a row over the excess-ively lucrative rewards being paidto senior figures in some of theUS banks which had receivedtaxpayer support, Lloyd Blankfeindenied that Goldman had everneeded State aid. In an angry retort, PresidentObama is reputed to have snapped:“these guys want to be paid likerock stars when all they’re doingis lip-synching capitalism.”


SPECTRUM

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may 201154


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SPECTRUM 55may 2011

A prize of ¤30 will be awarded to the first entry drawn from our post bag after the closing date.

2 3 4

1 5 6 7

Use the first letter of the surnames of each of the people pictured to spell out the surname of a Canadian film director andprominent British politician. A prize of ¤30 will be awarded to the sender of the first correct entry drawn from our postbag on June 30, 2011. The winner of the last Picture Board quiz was Catherine Doherty of Dundalk, Co. Louth. Theanswer was Beckham.

super: quiz

PictureBoard

10% discount for IBOA members on all products(excluding medicines and prescriptions)

Available on production of your IBOA membership card at Hickey's Pharmacies in Arklow, Cork,Drogheda, Dublin (O'Connell Street, Henry Sreet, Grafton Street, Harold's Cross, Crumlin, Terenure,Tallaght, Coolock,Phibsboro, Santry, Finglas, Ongar and Tyrrels town), Dundalk, Gorey, May nooth, Navanand Newbridge.

HICKEY’S PHARMACIES


SPECTRUMmay 2011

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Previous solution

Across: 1.Breakdown; 6. Truck; 9. Acorn; 10. Symposium; 11. Rain Forest; 12.Once; 14. Finesse; 15. Scandal; 17. Believe; 19. Anarchy; 20. Inch; 22. Sterilised;25. Apertures; 26. No Use; 27. Eager; 28. Discarded.Down: 1. Blair; 2. Emotional; 3. Kingfisher; 4. Observe; 5. Nemesis; 6. Thor; 7.Union; 8. Kimberley; 13. Casablanca; 14. Fabricate; 16. Dachshund; 18. Entered;19. Arrests; 21. Clegg; 23. Dread; 24. Star.

The winning entry for the prize crossword competition in the last issue wassubmitted by Maria Murray of Ballycullen Road, Dublin 24.

Name............................................................ Union No .....................

Address ..................................................................................................

...............................................................................................................

Employer................................... Branch/Dept....................................

A prize of ¤50 will be given to the sender of the first correctentry drawn from our post bag on June 30, 2011. Entriesshould be sent to Crossword, Spectrum, IBOA – The FinanceUnion, IBOA House, Stephen Street Upper, Dublin 8. Aphotocopy of the grid is acceptable if you prefer not to cut upthe magazine.

Across:1. Male pupil (9)6. Trick (5)9. Cook in oven (5)10. Allocation (9)11. American capital (10)12. Strike with whip (4)14. Embedded in earth (7)15. Large American hat (7)17. Fateful liner (7)19. 1 across could be one (7)20. Common sense (4)22. Collapses (10)25. Middle portion of the

day (9)26. Provide food (5)27. Ahead of time (5)28. Learned or erudite (9)

Down:1. Thin paper tube (5)2. Passionate (4,5)3. Advantage (10)4. Boasted (7)5. Discolours with age (7)6. Compassion (4)7. Sports venue (5)8. Irish-born British field

marshal (9)13. Systematic (10)14. Despot (9)16. Brine (9)18. Inquisitive (7)19. Steadfast (7)21. Complete (5)23. Wander (5)24. Cry of donkey (4)

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

56

super: quiz

10% discount on any mobile phone* or mobile accessoryfor IBOA members in the Republic of Ireland.

*except the Apple i-Phone


You don’thave to bea geniusto workit out!

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SPECTRUMmay 2011

A prize of ¤30 will be awarded to the sender of the first correct

entry drawn from our post bag on June 30, 2011.

In order to complete the puzzle, insert the figures 1 to 9 in

the grid. No number may appear twice in any row or column

of the same 9x9 grid or in any of the 3x3 subsections within

the grid.

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

will be acceptable – if you would prefer not to cut up the

magazine.

The winning entry for the Sudoku Challenge in the last

issue was submitted by David Wilson of Belfast.

Name....................................................... Union No: ..............................

Address ...................................................................................................

................................................................................................................

Employer.................................. Branch/Dept.........................................

3 4 8 2

7 6 8 5

7 1

1 3 8 7 2

6 4

5 6 3 8 9

8 7

2 5 1 8

8 3 5 7

SUDOKUChallenge

A prize of ¤30 will be awarded to the first entrydrawn from our post bag after the closing date.

57

super: quiz

Inspired physicist and

inspiring teacher,

Albert Einstein was

also a trade unionist.

He was a founder

member of Local

(Branch) 552 of the

American Federation of

Teachers at Princeton University.

II’M BBETTER OOFF AALTOGETHER!IBOA – the Finance Union


SPECTRUMmay 2011

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with STEPHEN MALONE

Crash machinesThe devastation wrought on the Bank ofIreland Branch in Tinahely, Co. Wicklow,after a bungled attempt to extract the con-tents of its ATM is further evidence of thefact that even supposedly foolproof planscan go spectacularly wrong. Since their introduction, ATMs seem tohave been particularly attractive for would-be thieves – maybe because they think thattaking on inanimate objects is easier thanconfronting real human beings in order toget their hands on the cash. But, of course, the human elementremains – in the shape of the thieves,themselves, who are often well able tofrustrate their own best laid plans. Like the robbers in Sydney, Australia,who attached the chains of their tow truckto an ATM machine at a service station todrag it out of its wall mounting. They con-tinued to drag the ATM behind the truckas they made their getaway – until theresulting friction caused the ATM to burstinto flames. The ATM was abandoned –with the cash still inside. Meanwhile thieves in East Kilbride inScotland managed to avoid the flameswhen they used a tow truck to wrench anATM from a bank. They actually managedto get the machine onto the flat bed of thevehicle. But as the driver hit the acceleratorto make a quick getaway, the ATM fell offthe back of the truck into the road.

ultra: violet

58

Now that really is a hole in the wall!: The aftermath of an attempted robbery of anATM machine from the Bank of Ireland Branch in Tinahely, Co. Wicklow (Photo:Michael Kelly).

Living on the hedgeWhat do you say to a hedge fund managerwho can’t short-sell anything?Quarter pounder with fries please.

A loan at lastA man drives into town in an expensivecar and goes to a bank to request a loanof ¤1000, He needs the money, he says,because he is in town for a week, has

forgotten his ATM card and doesn’t haveany cash. Approving the loan, the bank manageradds: “You’ll have to leave your Porschehere with us as collateral.” The man agrees. At the end of the week, he returnsthe ¤1,000 loan along with an interestpayment of ¤4 for a short-term loan plusprocessing. Curious, the banker asks why he didn'tjust get a wire transfer. The man replies:“Where else could I park my car for a weekfor ¤4?”

SPECSAPPEALFORIBOAMEMBERS

¤30 off glasses from the ¤149 range or above

in the Irish Republic

£20 off glasses from the £99 range or above in

Great Britain and Northern Ireland

To receive your SpecSavers discount voucher,

call 0(0-353-)1-4755908 or 0(0-44-)2890-200130.


Potted historyThe story of the Irish banking crisis infour and a half minutes – that's the aimof a new video available on YouTubeinspired by the IBOA poster of the UsualSuspects –which featured in the last issueof Spectrum and was also prominent onthe Irish Congress of Trade Unions marchin Dublin last November. Based mainly on RTE news footagefrom the last couple of years, The UsualSuspects is set to Coldplay’s Viva La Vidawith its recurring refrain: “Never an honestword – but that was when I ruled theworld” – an appropriate summary of theactions of many of the players in the crisiswhich included regulators and politiciansas well as banking chiefs. Among the highlights of this montageis footage of Seán Fitzpatrick bristlingwith arrogance and blissfully unware of hisimpending comeuppance. Patrick Neary's boastful – and quitedeliberately misleading – confirmation ofthe good health of the Irish bankingsystem shortly after the State guaranteeand shortly before the nationalisation ofAnglo is another moment of supremeirony. The film’s epilogue – recalling an IMFreport on the Irish financial sector in 2006– demonstrates that even the Chopra-ledfire brigade, which was called in to dealwith the consequences of Ireland’s over-heated economy, had previously providedtheir own fuel for the flames by endorsingthe consensus which had promoted theboom. The clip can be viewed at http://www.youtube.com/watch?v=aQERp0UoGaMor alternatively you can log on to YouTubeand search for suspectflix.

And finally…A shepherd was herding his flock in aremote pasture when suddenly a brand-new BMW advanced out of the dust cloudtowards him. The driver, a young man inan Armani suit, Gucci shoes, RayBanshades and a YSL tie, leaned out thewindow and asked the shepherd: “If I tellyou exactly how many sheep you have inyour flock, will you give me one?” The shepherd looked at the man,obviously a yuppie, then looked at his

peacefully grazing flock and calmlyanswered: “Sure.” The yuppie parked his car, whippedout his ThinkPad and connected it to a cellphone, then he surfed to a NASA page onthe internet where he called up a GPSsatellite navigation system, scanned thearea, and then opened up a database anda spreadsheet with complex formulas.He sent an email on his Blackberry and,after a few minutes, received a response. Finally, he printed out a 130-pagereport on his miniaturized printer thenturned to the shepherd and said: “Youhave exactly 1586 sheep.” “That is correct. Take one of the sheep.”said the shepherd. He watched as theyoung man selected one of the animalsand bundled it into his car. Then the shepherd said: “If I can tellyou exactly what your business is, will yougive me back my animal?” “OK, why not.”the young man replied. “Clearly,” said theshepherd, “you are a business consultant.”“That’s correct.” replied the yuppie, “buthow did you guess that?” “Well,” said the shepherd. “You turnedup here although nobody called you. Youdemanded payment for telling mesomething I already knew, in answer to aquestion I never asked, and you know crapabout my business…... Now give me backmy dog!”

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SPECTRUMmay 2011

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WANTED:

FOR IMPERSONATING BANKERS

10% off all products

purchased in the

Republic of

Ireland or

Northern Ireland

on presentation

of your IBOA

membership

card in store.

with STEPHEN MALONE


NOW more than everit’s time to STEP up!During this crucial time for the future of the financial servicessector, it is essential that staff are well represented locally aswell as nationally.

Elections for District Secretaries and workplace representativesare due to take place next month.

Nominations close at 5pm on Tuesday, June 7.

For more information, check out the Union websites:www.iboa.ie or www.iboa.org.uk

YOU are the Union!


Spectrum May 2011

Documents

Transcript of Spectrum May 2011