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Banking Sector Redundancies

Dáil Éireann Debate, Thursday - 20 December 2012

Thursday, 20 December 2012

Questions (87)

Michael McGrath


87. Deputy Michael McGrath asked the Minister for Finance if he will provide details of the number of AIB employees who have applied to avail of the voluntary redundancy scheme; the estimated total cost of the voluntary redundancy scheme; if he will confirm the existing number of employees at the bank and the optimum number being targeted on the conclusion of the redundancy programme. [57614/12]

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Written answers (Question to Finance)

AIB announced earlier in 2012 its intention to achieve a minimum of 2,500 voluntary redundancies by 2014 as part of a material cost-cutting drive to return the bank to viability. The voluntary exit programme is comprised of an Early Retirement (ER) programme and a Voluntary Severance (VS) Program. The ER component was opened to all areas of the bank and is now closed for future applications. The VS component has been staggered across different areas of the organisation and will be implemented on a phased basis out to 2014 depending on the needs of the business. I have been informed that as part of its regular reporting cycle, AIB will provide updates on headcount and operational costs, including updated costs with respect to the Exit Programme, as part of its annual results announcement in Q1 2013. AIB has also informed me that to date, the level of applications for ER and VS has exceeded 2,500 and AIB is therefore confident of attaining its minimum target reduction by 2014 on a purely voluntary basis while ensuring appropriate business risks are monitored and contained and appropriate customer service levels are maintained.