Ulster Bank has unveiled plans for its first redundancy programs as part of the bank’s upcoming exit from the Irish market.
The two programs open today, with a two-week window for bank employees to apply. Those accepted into the schemes will be notified of the decision early next year, according to Ulster Bank.
The bank now expects 600 employees to leave the bank by March 2023 as a result of these social programs.
A number of Ulster Bank colleagues will also leave the bank to work with Permanent TSB and AIB after both banks acquired certain Ulster Bank assets.
A program, which will be known as the “At Risk” program, will focus on around 450 colleagues who work in the remaining 63 branches and will not transfer to PTSB, as well as a small number of personal banking employees.
Those affected by this group of people can submit an application for voluntary termination or re-employment for a temporary or long-term position.
The Business Led program will involve around 350 colleagues and teams across the bank’s services, functions and private banking departments. The move was attributed to a projected significant drop in the volume of work in these areas in the first half of next year.
This program is also voluntary and if accepted, employees will be given an exit date based on business needs after the first quarter of next year.
Last year Ulster Bank reached an agreement with the Financial Services Union (FSU) on improved termination terms.
Included in the new proposed redundancy terms are five weeks’ pay per year of service including statutory or four weeks’ pay per year of service plus statutory, whichever is greater. Severance packages are capped at 104 weeks and £300,000 (£343,000).
There will also be a minimum payment of 20 weeks regardless of length of service, while a seniority payment of £4,700 (€5,000) will be paid to colleagues with between 25 and less than 30 years’ service.
Those who have worked at the bank for more than 30 years receive a long service bonus of £7,050 (€7,600), which is not included in the £300,000 cap.
Ulster Bank also said the bank is not announcing a firm date for branch closures at this time. Following the PTSB acquisition, 25 current branches will reopen as PTSB locations early next year, while Ulster Bank will announce the remaining branches in the new year.
“While these plans have been well signposted to colleagues as part of our disengagement communications, the programs announced today will provide some clarity to those affected,” said Chief Executive Jane Howard.
“For those who are out of scope today, we expect more redundancy programs to open in 2023 and beyond, meaning colleagues who are out of scope today are likely to be placed in future programs, with exit dates later in the year.” are expected in 2023 and 2024.”
https://www.independent.ie/business/irish/ulster-bank-to-cut-600-jobs-ahead-of-irish-market-exit-42149013.html Ulster Bank plans to cut 600 jobs before exiting the Irish market