Dáil Éireann Debate, Tuesday - 23 June 2015
112. Deputy Peadar Tóibín asked the Minister for Finance as the principal shareholder in Allied Irish Banks, if he will confirm that existing contractual pension arrangements for current staff in the bank’s informational technology division's application and development management teams, whose jobs are to be outsourced to a third party, are provided for under the Transfer of Undertakings (Protection of Employment) Regulations 2006. [24533/15]
View answerAs the Deputy will be aware under the Relationship Frameworks the State does not intervene in the day to day operations of the banks in which it holds investments or their management decisions regarding commercial matters and hence any discussions around matters such as outsourcing are a matter for the bank, the relevant staff and their union representatives. Notwithstanding this position, my officials do take an active interest in how the bank's cost base evolves to ensure that the State's interests as shareholder are protected and to ensure that the Government's remuneration policy is enforced.
The bank has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with unions and affected staff. I have also been informed by the bank that there have been no compulsory redundancies as a result of its recent outsourcing activities. Any staff who transfer under outsourcing arrangements transfer under the TUPE regulations.
I have been informed that AIB has not at this stage confirmed any agreement to outsource some of its technology services in Application and Development Management teams to a third party provider. Should any such decision be confirmed, then affected staff will be informed immediately and AIB will enter into a full process of information and consultation with employee representatives, as required both by law and under engagement principles agreed with the Irish Bank Officials Association (IBOA).
As permitted by the relevant European Directive most occupational pension rights are not covered by Transfer of Undertakings Regulations (TUPE) in the Republic of Ireland (ROI.) Occupational pension rights transfer on a limited basis under TUPE Regulations in Northern Ireland.
It is expected that occupational pensions will form a key part of discussions during any consultation process that may arise with employee representatives. In all previous similar transactions involving AIB, agreement has been reached between AIB and employee representatives in relation to pension issues.
