It was reported in the press this morning that AIB is set to offer staff an average 2.75% pay increase in both 2017 and 2018 following recommendations from the Workplace Relations Commission.
Both AIB and the Financial Services Union have accepted the recommendations and they will now be put to ballot.
The recommendations also provide for the terms of the previously negotiated job security agreement to be extended until the end of 2019 and for AIB to continue to pay the management fees associated with its defined benefit pension scheme until the end of 2018. The FSU has also agreed to ongoing co-operation with the bank’s change and restructuring plans.
According to Goodbody Stockbrokers, "Our forecasts for AIB have underlying cost inflation of 3.0% in 2017. In 2018, we are forecasting underlying inflation of 2.5%, but savings from the expiry of its substantial 3-year IT investment at the end of 2017 should keep reported costs in 2018 on a flatter profile."
They added, "As such, the potential staff pay deal looks manageable in the context of our forecasts. BOI recently struck a deal with staff for a 2.2% pay increase in 2016 and 2.6% in 2017."
Source: www.businessworld.ie
