John McGuinness
Question:40. Deputy John McGuinness asked the Minister for Finance if he has recently met with a union (details supplied). [44876/21]
View answerTuesday, 21 September 2021
Questions (40)
Written answers
Minister for State Fleming and I have had regular contact with the Financial Services Union (FSU) in the last year, particularly in relation to the withdrawal of Ulster Bank and KBC Bank Ireland (KBC) from the Irish market. I met with the FSU after the Ulster Bank announcement by NatWest and I have committed to further engagement with the FSU in relation to this issue.
Whilst the management of staff matters is entirely a matter for the Banks and any counterparty who acquires any of their business, I would expect all stakeholders to be very sensitive in relation to the needs and rights of staff. This includes full compliance with any statutory requirements, and honouring all agreements in place between the bank and staff representative bodies. In addition, I would expect these entities to engage with staff representative bodies as appropriate.
Ulster Bank
I note that on 11 June Ulster Bank reached a new Colleague Agreement with the FSU and that this agreement is subject to a ballot of FSU members.
On 23 July, Ulster Bank reached a non-binding agreement with PTSB for the proposed sale of €7.6bn performing loans, Ulster Bank’s Lombard Asset Finance business, and 25 of 88 Ulster Bank branch locations. If this potential transaction is delivered, it is expected that between 400 and 500 Ulster Bank employees will transfer to PTSB.
Ulster Bank has also committed not to close any branches in 2021 and said that it does not anticipate closing any branches in the first half of 2022. Branches will also continue to play an important role in its business in the second half of 2022.
KBC
On 16 April, when KBC announced the proposed transactions that may result in it is withdrawing from the Irish market, it stated that it had entered into a Memorandum of Understanding with Bank of Ireland, expressing the parties’ intention to explore a route that could potentially lead to a transaction whereby Bank of Ireland commits to acquire substantially all of KBC Bank Ireland’s performing loan assets and liabilities.
I note that Bank of Ireland has commented that it will be working closely with all colleagues at these branches and will be setting out a range of options, including relocating to a different branch, moving to a new role in the bank, or voluntary redundancy for those who choose it. KBC also made an internal announcement in mid-August regarding job security for employees until 31 December 2021.
These potential agreements are subject to further due diligence, negotiation, and the completion of a final binding agreement and obtaining of regulatory approvals. While these are commercial negotiations, the Government is supportive of trying to bring about an outcome that is good for the banking sector, as well as for the staff and customers of Ulster Bank and KBC and for the Irish economy generally.
Questions Nos. 41 and 42 answered orally.