Thomas Pringle
Question:224. Deputy Thomas Pringle asked the Minister for Finance if he will clarify his intentions regarding the Mercer report and its effect on lower grade employees. [16150/13]
View answerTuesday, 16 April 2013
Questions (224, 248, 265, 270, 309, 310)
Colm Keaveney
Question:248. Deputy Colm Keaveney asked the Minister for Finance if he intends to take the Mercer Report into the banking sector at face value or if he will reconsider its disregarding of performance-related pay as non-core pay because treating this element of pay, essentially by which a portion of an employee's salary was at risk unless certain targets were met, as being a discretionary bonus is disingenuous; if he recognises that there is a danger of lower paid bank workers being regressively affected by pay cuts while senior executives continue to enjoy salaries and bonuses far beyond the reach of ordinary workers and where former senior executives have escaped with golden handshakes and grossly large pensions; if so, the way he intends to adequately address this disparity; if he intends pursuing a course of action to encourage or compel banks to enforce further cuts on modestly paid bank employees; and if he will make a statement on the matter. [16352/13]
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Patrick Nulty
Question:265. Deputy Patrick Nulty asked the Minister for Finance his views on the Mercer report on banking pay; if he will set out a comprehensive strategy to protect banking workers at this time of major transformation in the banking sector; and if he will make a statement on the matter. [16432/13]
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Robert Dowds
Question:270. Deputy Robert Dowds asked the Minister for Finance in the context of the recently published Mercer report, his views on whether lower paid bank workers working for State owned banks should be treated differently from higher paid bank executives; if the Mercer report was a fair reflection on the pay and conditions of low paid workers; and if he will commit to ensuring that low paid bank workers in State-owned banks will be treated fairly in any discussions on remuneration in view of the difficult and stressful circumstances in which they are working. [16516/13]
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Robert Troy
Question:309. Deputy Robert Troy asked the Minister for Finance if he will consider protecting lower ranking bank staff from the further pay cuts outlined in the Mercer report in recognition of the fact that lower ranking bank officials have already experienced overall pay cuts of between 6% and 11% since 2008, due to bonuses being scrapped. [17030/13]
View answerRobert Troy
Question:310. Deputy Robert Troy asked the Minister for Finance in view of the Mercer Report into pay at Irish banks, if he will outline the proposed timeframe for the implementation of the report’s recommendations; and if he will make a statement on the matter. [17031/13]
View answerWritten answers
I propose to take Questions Nos. 224, 248, 265, 270, 309 and 310 together.
When publishing the Review of Remuneration Practices and Frameworks at the Covered Institutions, on 12 March 2013, I indicated that the Government had formed the view that with the remaining covered institutions still incurring losses it was an inescapable conclusion that the cost base of the institutions needs to be reduced further. This is essential if they are to return to profitability, be in a position to support the economy and repay the State’s investment through a return to private ownership.
On behalf of the Government, I have now directed the banks to come up with plans as to how they intend to address this issue in a manner that can help meet the State’s objectives. I expect the value of those plans to mean a saving of 6% - 10% of total remuneration costs, through reductions in payroll and pension benefits, new working arrangements and structures that deliver efficiency gains. Tackling the cost base is of course only one of many goals that need to be achieved but combined with other measures will deliver the required results.
I, and the Government, acknowledge that the sacrifices and changes made by bank employees to date at all levels and recognise that this has been achieved without major industrial unrest in what is a critically important sector. However, it can never be forgotten by management and employees of these banks – both past and present – that without enormous cost to Irish taxpayers these institutions would not have survived and that this needs to be borne in mind during future discussions. If remuneration costs are to be reduced with the aim of a return to profitability then sacrifices at all employees levels will be required.