RE: 1,400 Job Cuts at Bank of Ireland (BOI) - Letter to the CEO of BOI
10 August 2020
Dear Ms. McDonagh,
I am urgently writing to you regarding the recent announcement by Bank of Ireland (on Wednesday 5th August 2020) to roll out a voluntary redundancy plan with the aim of reducing its staffing levels from 10,400 to below 9,000.
As I am sure you can appreciate, this announcement has sent shockwaves right across the sector at a time of already great uncertainty. It has come as a surprise to customers, staff and their union of choice – the Financial Service Union (FSU) – who were not made aware of this decision in advance despite representing up to 60% of Bank of Ireland workers.
Moreover, it completely disregards prior engagement by the FSU with the banking sector and agreements reached with other banks for a pause on redundancies during the current emergency. Indeed, Bank of Ireland is an outlier in this sense and this misstep, if not stopped, will inevitably damage the banks long-term standing with the public, customers and broader stakeholders.
Consequently, it is vital that proper and prior consultation takes place between Bank of Ireland management, staff and the FSU representatives before any plan is further commenced. I therefore strongly urge you to immediately commit to postponing the proposed voluntary redundancy plans and agreeing to engage with the FSU at the earliest opportunity to discuss a pause on redundancies for a 12-month period as the Labour Party has also proposed.
I fear failure to do so may result in irreparable reputational damage due to the tone-deaf timing and total insensitivity towards frontline staff serving their communities at this time. Indeed, it echoes the rash decision made in March – since rightly reversed – to close branches (accounting for 38% of the total Bank of Ireland network) without the required two months’ notice under the Central Bank's Consumer Protection Code.
Such decisions raise serious questions with regards to the decision-making processes and at worst may lead to the perception that senior management are ruthlessly availing of the COVID-19 crisis as convenient cover to engage in cost-cutting measures and consequently cut staffing levels.
At the very least, it risks portraying the bank you lead as totally insensitive to the ongoing struggles of staff at this time, with workers effectively being asked to make a life-changing career decision at a time when many are focused the everyday challenges of, for example, getting their children back to school safely this coming September.
Notably, this decision shows little solidarity with the State’s efforts to retain and restore jobs at a time of unprecedented economic difficulties, despite the fact the State is a major shareholder with a significant equity-stake of 14%.
In addition, I would appreciate if you could clarify whether a consent request or consultation briefing was sent to the Minister for Finance relating to this decision, and if so, what response was issued to you regarding the matter?
I duly hope the need for an urgent and adequate response is appreciated given the looming four-week deadline.
Yours sincerely,