DECEMBER 2014 SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk

THE IRISH BANKERS’ CLUB CLUB OPENING HOURS: Tuesday-Saturday: 4.30pm until late. IBOA HOUSE, STEPHEN STREET UPPER, DUBLIN 8 Telephone: 01-4758970 10am-12noon or after 5pm (Tuesday-Saturday). Sunday-Monday: closed.

NOW SELLING THE 29TH BANKERS’ CLUB DRAW

Magnificent Holidays and Magnificent Cash Prizes Early Entry Prizes and Monthly Attendance Prizes Open to All IBOA Members and Partners The Draw Application Form is included with this issue of Spectrum CLOSING DATE: FRIDAY DECEMBER 19, 2014 Return your entries today! Don’t miss out!

UPCOMING CLUB CLUB MEMBERSHIP DRAW NIGHTS

Friday, December 19: New members welcome The 29th Christmas Draw Night 1st Prize: Two weeks for 2 in Join now for free membership Chicago, Niagara & New York until September 2015– 2nd Prize: €500 and cost then only €20 a year! 3rd-10th Prizes: Hampers,Turkeys, Features include: Hams & Bottles • Reduced room hire rates CLUB MEMBERSHIP Friday, January 30, 2015: • Bar & meeting room facilities 1st Prize: Two weeks for 2 in • Catering & DJ facilities Morocco • Big screen for all 2nd Prize: €300 3rd Prize: €250 sporting occasions 4th Prize: €200 • Full bar licence – extensions available Friday, February 27: 1st Prize: Two weeks for 2 in For more information, please contact Florida Michael Martin, Honorary Secretary, Irish 2nd Prize: €300 3rd Prize: €250 Bankers’ Club, at the address above. 4th Prize: €200 Friday, March 27: Grand Draw Night DRAW RESULTS 1st Prize: Two weeks for 2 in Australia or Mauritius & Dubai Results of recent Bankers’ Club draws or Rugby World Cup are posted on the IBOA websites at: 2nd Prize: €1,000 3rd Prize: €500 4th Prize: €300 5th Prize: €200 www.iboa.ie/services/sportsand social/bankersclub.html All draws take place at 9pm sharp. or Bar food served 5pm-10pm. Plus monthly attendance www.iboa.org.uk/services/sportsand prizes – Belfast – Dublin social/bankersclub.htmlDRAW RESULTS Club Bookings SPECIAL OFFERS FOR 2015 All IBOA members, Club members and their friends or family members can book the Bankers’ Club for a party or special function for just €100 from January to September 2015: Phone Alan at 01-4758970 Book your Christmas Party at the Bankers’ Club and enjoy free room hire during December 2014.

2 INSIDE INFO www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM In this issue…

LOOSE CHANGE CURRENT ACCOUNTS Culture must change says IMF’s Lagarde 5 Banking inquiry 14 TTIPing the balance from At long last citizens to corporation 6 Back to Black 15 Breaking the Code of Silence BOI in profit 7 Payback AIB aims to repay State bailout eventually 7 Write-downs AIB writes down mortgage debt in pilot with IMHO 21 1914: bank workers on the 8 Murphy’s Law frontline New law on whistleblowers 16 Political economy Republic’s Budget fails key GOING CONCERNS tests on fairness and jobs 22 Inside IBOA British austerity policies Website make-over under way hurt North’s economy Our social partners: Twitter ICTU backs voter registration IBOA – and Facebook The Finance Union A pay rise for all Vision 2020 RBS can’t catch a break 18 Customer focus General Secretary: 24 Discount Window Larry Broderick 9 Danske profits improve CAI seeks inquiry on bank fees Making your cash go further 9 Permanent TSB stressed with IBOA Group Schemes Honorary Secretary: 10 ECB stress tests Tommy Kennedy RBS passes despite faulty data Communications 10 House calls Manager: Banks cool on regulator’s Séamas Sheils mortgage proposals Advertising: 11 More jobs go at JPMorgan Anna O’Doherty Louise O’Donnell 11 Bolden plans branchless Going Postal bank in UK IBOA House 20 Culture clash Stephen Street 11 World class strikers in Brazil Carney on banks and fairness 26 IBOA events Upper, Dublin 8 12 Life-trials of the Slick and 29, Malone Road, Shameless Belfast. BT9 6RU. Phone: 00353- 1-4755908 and CHAPTERS BOOKSTORE 0044-28-90200130 E-mail: [email protected] Parnell Street Dublin 1 Web: www.iboa.ie www.iboa.org.uk Spectrum is printed on recycled paper and wrapped for UK’s top director earns £31m posting in 10% oxy-degradable in one year polythene­ at Currency traders who don’t discount for W. & G. Baird, give a forex IBOA members Antrim, Northern Ireland. Banker is best paid executive in New Zealand Oz: the ‘great and powerful’ Show your IBOA membership card at the pay point

Cover photograph: Kym Kemp

3 INSIDE INFO SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk In this issue…

BANK NOTES FOREIGN EXCHANGE Mental health is key concern at work 28 Bank of Ireland 34 Worldview Milestone deal on pay and career progression FIXED INTEREST 29 Danske Bank 38 Game Time Seven more branch closures The pride of Ballyhaunis 39 Cinematique The final chapter The Guarantee FIFA overlooks migrant Inez: a challenging woman deaths and abuse 42 Prize crossword EU Commission fines four 43 Picture board and Sudoku banks 44 Game time 30 Ulster Bank NZ bank workers smell a rat Reasons to be cheerful More closures sought Bank news clips 46 Stephen Malone Negotiations on pay The curse of Drivetime Assault and Blattery! Engagement on restructure LIFE COVER IBOA – Lombard Ireland to transfer The Finance Union into Ulster Bank 36 Safety Feature General Secretary: 31 AIB Group Larry Broderick Pay talks under way Job losses likely in AIB GB Honorary Secretary: Tommy Kennedy FPCs accept deal on functional cars Communications Manager: Engagement at AIB Séamas Sheils 32 IBRC More infallible than the Pope Advertising: Pay talks under way New ICTU guide to assist No need for pay claims: Anna O’Doherty 33 Organisation workers with breast cancer women should trust in karma Louise O’Donnell IBOA House Stephen Street Upper, Dublin 8 29, Malone Road, Belfast. BT9 6RU. Wishing all our readers Phone: 00353- 1-4755908 and 0044-28-90200130 the compliments of the season E-mail: [email protected] Web: www.iboa.ie www.iboa.org.uk Spectrum is printed on recycled paper from the Officers and Staff of and wrapped for posting in IBOA The Finance Union oxy-degradable polythene­ at W. & G. Baird, Antrim, Northern Ireland.

4 LOOSE CHANGE www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM UK bank scandals confronting past do huge damage

he scandals that have Tresulted in British banks having to pay out £38.5bn in fines and compensation over the past fifteen years will take a generation to fix, according to a new report from an independent think tank. The report by the think tank, New City Agenda, and the Cass Business School in London examined British banking culture that has led to scandals ranging from the attempted manipulation of foreign exchange and bench- mark interest rates to the mis- selling of loan insurance. It found that an aggressive sales culture took hold over two decades, with some branch staff receiving cash bonuses, iPods or even tickets to Wimbledon for meeting sales targets. The banking inquiry is due to get under way later this month, chaired by Labour TD Ciarán Lynch (above). “A toxic culture which was Photograph: Dara Mac Donaill (Irish Times) decades in the making will take a generation to turn around,” said David Davis, chairman of New City Finally a banking inquiry Agenda. “At this critical juncture, Britain’s biggest banks cannot Oireachtas agrees terms of reference afford to let the better treatment of customers become a second-order he Republic’s banking The first part of the inquiry – While Draghi ruled out formal priority,” he warned. Tinquiry is expected to get known as the Context Phase – is particpation on the grounds that The mis-selling of payment under way this month follow- expected to begin this month. It is the ECB was accountable to the protection insurance (PPI) alone ing the long-awaited approval likely to include preliminary work European Parliament – rather than cost British banks at least £27bn, involving technical briefings – with any national institutions, he according to the report. of its terms of reference by both the first hearings due to start in suggested that the ECB might be PPI compensation amount Houses of the Oirechtas. January. able to participate informally. At the end of November, the Witnesses in this phase are “We haven’t discussed yet totalled £11.3bn at Lloyds Banking, Oireachtas finally endorsed the likely to include the authors of pre- what sort of shape could take this £5bn at Barclays, £3.3bn at RBS terms of reference which had been vious reports into the crisis, such informal participation,” he said. and £2.5bn at HSBC. previously agreed by the eleven as Peter Nyberg, who reported on “We will think and reflect on this.” New City Agenda noted that members of the committee – based the banking collapse in early 2011, The Oireachtas inquiry aims to banks had received 20.8m com- as well as Klaus Regling and Max issue its final report by the end of on recommendations from an plaints since the financial crisis. Watson, who reported in 2010. November, 2015. However, with a ad-hoc advisory group, made up of It recommended that the new a number of economists and senior The hearings in the Nexus general election possible next year, Banking Standards Review Council civil servants. Phase are expected to begin in April some committee members have should talk to branch staff to check While the scope of the inquiry and conclude in September. raised concerns that the committee Contacts are believed to have might not be able to complete its is expected to run from 1992, when they are not under pressure to already been made with some work before it is dissolved. European banking capital require- sell and should report annually to witnesses who may be compelled The inquiry is expected to cost the Treasury Select Committee at ments were changed, through to attend if they live in this country, between €5m and €6m – with staff to the end of 2013, the inquiry but not if they are in another costs, research and legal advice, and Westminster. will have a particular focus on jurisdiction, such as European upgrading Leinster House facilities to “The need for culture change the events leading up to the bank Central Bank (ECB) officials. enable the inquiry to be televised. has been recognised, but it has to guarantee in September 2008 – and But the current ECB President, It has been suggested that the be transmitted all the way from the on its consequences. The role of the Mario Draghi, indicated recently banks participating in the inquiry top to the bottom of these huge media is also likely to figure in the that the ECB will not formally may be asked to make a financial organisations,” said John McFall, a investigation. participate in the banking inquiry. contribution towards the costs. former chair of the Treasury Select Committee and one of New City Agenda’s directors. 5 LOOSE CHANGE SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk pillar talk Back to black BOI in profit for first time since 2008 ank of Ireland reported its first profit since Ireland’s disastrous 2008 property and banking crash, with its results for the half of Bthe year showing a net profit of €343m, compared with a net loss of €463m a year earlier. The improved trading perfor- In outlining the results, the mance was attributed to higher net bank’s Chief Executive, Richie interest income, lower guarantee Boucher, drew confidence from the scheme fees and reduced impair- “more favourable” macroeconomic ment charges. The improved perfor- outlook in the UK and Ireland mance extended to the bank’s retail and indicated that the rewards for divisions in Ireland and the UK. staff were now on the table again In Ireland, retail losses fell to following the return to profitability. €28m in the first six months of Customer deposits showed this year compared with €339m in an increase while total defaulted 2013 – while in the UK, the retail loans continued to decline – with business returned to profit with a reductions in arrears in both the surplus of €57m compared to a loss owner-occupied and buy-to-let of €112m a year earlier. mortgage books. Bank of Ireland Group Chief Executive, Richie Boucher (left) and Group Chief Financial Officer, Andrew Keating, at the launch of the For workplace news on Bank of Ireland, see page 28 Bank’s interim results to the end of June 2014. (Photo: Laura Hutton/ Photocall Ireland). Over 600 properties repossessed in first half of 2014 ank of Ireland repossessed a total of 621 owner-occupied or buy-to-let properties in the first half of 2014, according to Binformation supplied to the Oireachtas Committee on Finance and Public Expenditure and Reform recently. Bank of Ireland advised the parliamentarians that 322 judgments were enforced against owner-occupiers, compared to 299 on buy-to-let invest- ments. So these properties were either in the bank’s possession or had been sold. Up to the end of June this year, the bank had disposed of 80 of the properties it had repossessed during this period. According to the data provided by the bank, there were 85 reposses- sions in 2010; 166 in 2011; 180 in 2012 and 214 in 2013. Around 60% of these repossessed properties had been disposed of up to the end of last year. Heritage Centre Strategic Banking Corporation to for College Green lend through two pillar banks Bank of Ireland has agreed to Initial funding has been agreed make space available to the State for the new State-backed at its College Green site in Dublin Strategic Banking Corporation for use as a cultural and her- of Ireland – which aims to make itage centre for a 10-year period it easier for smaller businesses to to commemorate the “decade of get low-interest loans. centenaries” from 2016 onward. The Strategic Banking Corpo- The Bank is to spend €10m re- ration is to receive €400m from furbishing the centre for use by the the European Investment Bank, Department of Arts, Heritage and €240m from the Irish Govern- the Gaeltacht – as well as meeting ment, and €150m from the some of its running costs. 6

LOOSELOOSE CHANGECHANGE www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

It’s payback in about 10 years’ time!

IB could pay back its €21bn in bailout funds Awithin ten years, its Chief Executive David Duffy told members of the Oireachtas recently. “It will take time but that would be our expectation,” David Hall – Chief Executive he said. of the Irish Mortgage Holders “Our simple mission in life is to Organisation return the entire value back to the taxpayer,” he told a recent meeting of the Oireachtas Committee on AIB writes Finance and Public Expenditure and Reform. AIB Chief Executive, David Duffy, arrives at Leinster House to meet down 1,300 Revenue from dividend pay- the Oireachtas Committee on Finance and Public Expenditure and ments could be complemented by Reform (Photo: Sam Boal/Photocall Ireland) the disposal of the State’s 99.8% mortgage equity to private investors in a series of smaller sales rather than one debts in pilot large deal, according to Duffy. AIB returns to profit with IMHO For workplace new Pre-tax figures reach €437m for first half of year on AIB, see page 28 ver 1,300 distressed IB’s third quarter was “profitable and cash generative”, Omortgage-holders With the bank returning to Aaccording to Chief Executive, David Duffy, introducing the have managed to secure profit and generating capital again, bank’s latest performance update recently. debt write-downs with AIB Duffy concluded that it should be “AIB continues to make pro- confirmed the bank’s half-yearly thanks to a pilot scheme in an “investable proposition” for gress on its strategic goals. The bank results which revealed that AIB had run in conjunction with outside investors by next March, is profitable, generating capital and returned to profit for the first time the Irish Mortgage Holders although the amount and timing of has the capacity and appetite to since the financial crash. Organisation (IMHO). any sale of State equity would be a meet increased lending demand in Its pre-tax profit of €437m Acting as a third-party matter for the Government. the economy,” said Duffy. (£346m) for the first six months broker to advise distressed In the meantime, AIB Group’s “Delivering professional service of 2014 represented an improve- borrowers in their dealings senior management is consider- at competitive lending rates to our ment of €1.3bn (£1bn) in the bank’s with AIB Group, the IMHO has ing making a “downpayment” on customers lies at the heart of our performance, compared to the managed 1,330 long-term the €21bn debt to the State in the strategy while, at the same time, same period in 2013. resolutions for people in mort- New Year. ensuring the bank is generating The number of distressed loans gage arrears in its first year IBOA General Secretary, Larry an appropriate return for share- on AIB’s books fell by €2.9bn working with AIB. Broderick, observed that as well as holders, including the Irish State,’’ (£2.3bn). The total number of Between 75 and 100 of these starting to return the debt owed to said the AIB CEO. residential mortgage holders with deals involved debt write-down the State, AIB should also begin to AIB’S management statement accounts in arrears also fell by 6%. on family home mortgages of repay the debt to its staff. for the third quarter effectively Although the Group was briefly €1,000-€190,000, which enabled in profit in the first half of 2011, the families to continue living in that was due to one-off items which their homes. Strategic Banking Corporation to covered a substantial underlying loss. A further 279 deals provided debt write-downs on properties lend through two pillar banks that were subsequently sold German State development bank, Lending up voluntarily – mostly in the buy- Kreditanstalt für Wiederaufbau Impairments down to-let sector. (KfW). In 30% of the cases handled Loans will be available to AIB has approved €9bn in lending by the IMHO, the clients man- small and medium-sized firms between January and September – aged to achieve long-term through Bank of Ireland and AIB an increase of 39% on 2013 figures. sustainable solutions. from December. According to its recent interim AIB said the scheme, They are to be made avail- management statement, the value which is free to customers, has able on more flexible terms than of impaired loans on its books fell delivered significantl outcomes for customers who might not are currently available from com- from €26bn to €24.3bn. The number otherwise have engaged with mercial banks. of mortgage accounts in arrears had also fallen by 11%. the bank. The bank has now decided to extend their relationship with IMHO for another 12 months.7 LOOSE CHANGE SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk post script Is Murphy – rather than McEwan – in charge at RBS?

BS Chief Executive, Ross McEwan, has become all too familiar with Murphy’s Law in the last few weeks. “If something can go Rwrong it will” – and for the Ulster Bank parent, a series of particu- larly embarrassing errors has done nothing for the bank’s efforts to rebuild its reputation after being found guilty of involvement in a RBS Chief Executive, Ross McEwan number of recent scandals over LIBOR rate manipulation, foreign exchange rigging and mis-selling of insurance products. After the penalties levied by in fact, RBS just scraped past the Other banks should the Irish Central Bank on Ulster capital threshold. Bank over the IT meltdown in the Having consumed a large plate summer of 2012, the British reg- of humble pie for the stress test learn from Ulster’s ulators announced fines for RBS error, the Bank was also required last month totalling £56m over the to look for second helpings by same incident apologising to the House of IT issues – Broderick Then lo and behold, the very Commons Treasury Committee next day, another IT failure meant for providing misleading answers lster Bank has accepted a fine of €3.5m imposed by the that RBS, NatWest and Ulster Bank to questions in June about the Republic’s Central Bank for the major disruption of service customers were unable to complete operation of its now disbanded Uthat arose in the summer of 2012 in the wake of a major systems credit and debit card transactions or Global Restructuring Group. failure at RBS – which provides IT facilities to its Irish subsidiary. withdraw cash from ATMs during And did we mention the con- the morning rush hour. troversy over the bonus for his Though the ultimate responsi- Then, a few days later, RBS predecessor, Stephen Hester? Or bility for the failure of the IT system had to apologise to the European the Branch closures announced for lies squarely with Ulster’s parent, Central Bank for overstating some Ulster Bank? RBS, the Central Bank found that of the financial information it had “Things,” as D-ream suggested Ulster Bank did not meet key supplied for the ECB stress tests. So more in hope than confidence, “can obligations towards its Irish cus- rather than passing comfortably, only get better!” tomers and to the banking system generally. “Thanks to the exceptional effort of staff in branches and contact centres the worst effects of this unprecedented situation were Fines for foul-up mitigated,” noted IBOA General The RBS IT meltdown – which affected over 6.5m customers Secretary, Larry Broderick. “Their commitment was crucial Larry Broderick of RBS, NatWest and Ulster Bank for several weeks during the to the survival of the Bank and also in devolving control of core summer of 2012 – has drawn significant penalties from banking provided a timely reminder that regulators in Britain and Ireland. technological operations beyond there is still an important role for the immediate control of the Following parallel investigations, the Financial Conduct Authority has personal interactions within modern institution. fined RBS £42m and the Prudential Regulation Authority has imposed a banking. “If being part of the same bank £14m penalty while the Irish Central Bank has levied its biggest ever fine “Aside from passing judgement group is not enough to guarantee of €3.5m on Ulster Bank. on the past, the comments from continuity of service, then surely Outgoing RBS chairman, Sir Philip Hampton, said the problems Derville Rowland, the Central “revealed unacceptable weaknesses in our systems.” relationships with third-party Bank’s Head of Enforcement, offer service providers must be even “As I did back then, I again want to apologise to all customers in the some timely guidance on the future UK and Ireland that we let down two and a half years ago.” riskier. for all financial institutions. The latest instalment of the fall-out from the meltdown has come “In light of this judgement and “Her remarks on the pivotal role on top of £125m RBS set aside in 2012 to cover compensation and its own accompanying comments, played by information technology costs associated with the disruption. Since then, RBS has invested we hope that the Central Bank will in modern banking are welcome hundreds of millions of pounds to improve its computer systems – become proactive in scrutinising – as are her comments on the need which Chief Executive, Ross McEwan, said had suffered from “decades of future IT initiatives by all Irish for the banks to have robust IT under-investment.” banks – including proposals to out- Noting that “modern banking depends on effective, reliable and governance arrangements to ensure source or offshore key operations resilient IT systems, the FCA’s Director of Enforcement and Financial continuity of service. – so as to ensure that they will be Crime, Tracey McDermott, said that: “The Ulster Bank incident sufficiently robust to avoid any “The problems arose due to failures at many levels within the RBS highlights the major risks inherent possible systems failures.” Group to identify and manage the risks which can flow from disruptive IT incidents8 and the result was that RBS customers were left exposed to these risks.” www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

Danske profits improve

Danske Bank’s Northern Ireland CEO, Gerry Mallon RBS Chief Executive, Ross McEwan Mallon urges

NI businesses Danske Bank Chief Executive, Thomas Borgen

to recommence anske Bank reported a pre-tax profit of 4.5bn Danish Krone (€605m) for the three months to the end of September, up borrowing Dalmost 79% on the same period of last year – bringing the group’s usinesses in Northern pre-tax profits to 14.2bn krone (€1.9bn) in the first nine months of BIreland should begin to the year, up 65% on the same period in 2013. borrow again, said Danske Danske’s Northern Ireland busi- of over 1bn krone (€137.8m) on Bank’s Chief Executive, Gerry ness reported a pre-tax profit of its non-core activities, consisting Mallon, after the bank made a £81m for the first nine months of mainly of its exposures in the pre-tax profit of £81m for the the year, even though the North’s Republic. Ulster Bank CEO Jim Brown first nine months of 2014. economy has remained sluggish. Danske has come through a With fewer bad loans to be “The economy is still on the particularly difficult period since RBS commits to written off, Danske Bank was fragile side,” said Danske’s CEO in the onset of the financial crisis having its best year on record Northern Ireland, Gerry Mallon, Apart from its exposure to the Ireland as Ulster in terms of winning new busi- “but it’s clearly recovering,” he said. collapse in the Irish property ness customers, according to “I think we are at the stage market, Danske has also suffered Bank profits rise Mallon. where we foresee a good long-term from the fact that Denmark’s Mortgages approvals had profitable stretch ahead of us.” household debt levels were among also risen by 48% even though lster Bank will continue At the group level, Danske the highest in the world – con- Danske Bank only has a Bank said the improved profit po- tributing to house price falls and to operate in Ireland as a 6% share of the local mort- U sition was attributable to growth in a period of economic stagnation. core part of RBS Group. gage market and mortgage most of its income streams, while In a statement released with approvals by banks in Great results for the third quarter, RBS Britain were at a 14-month expenses and impairments fell. The For workplace news on confirmed it was holding on to its low. bank recorded a loan impairment Danske Bank, see page 29 Irish operation which it expects charge for the nine-month period will deliver good returns – with ap- propriate investment. The statement brought to an Permanent TSB takes steps end mounting speculation that RBS was sounding out other investors for either a sale or a joint venture. to meet stress test shortfall “Ulster Bank remains a core lthough Permanent TSB (PTSB) failed the European Central part of RBS,” said the Scottish Bank’s recent stress tests with a capital shortfall of €854.8m, parent, “offering a good strategic Aits actual deficit is now reported to be down to €125m in the wake fit with our focused retail and com- mercial banking strategy.” of remedial action taken during 2014. Operating profit at Ulster Bank The 99.2% State-owned PTSB around 60% of its mortgages are rose to £394m (€485m) in the nine failed on the tests’ adverse scenario trackers. months to the end of September, which requires banks to hold 5.5% PTSB will have nine months to compared with a loss of £520m in common equity tier 1 capital. The raise the capital necessary to meet 2013. main factors behind PTSB’s capital the ECB threshold. problems are its higher funding costs The other Irish-based banks – For workplace news on – compared to other Irish banks AIB, Bank of Ireland, Ulster Bank Ulster Bank, see page 30 Permanent TSB Chief Executive, – and the constraints on its net and Merrill Lynch International – Jeremy Masding interest earnings due to the fact that have all passed the ECB stress tests. 9 LOOSE CHANGE SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk third parties ECB stress tests under pressure Latest bid to restore confidence in banking suffers from RBS lapse lster Bank’s parent, RBS Group, Uhas been forced to admit that there were errors in the data House it submitted for the recent stress tests supervised by the European Central Bank (ECB). The revelation has caused some calls consternation within the ECB which had instigated the tests as a means of As house prices accelerate, the Republic’s Financial Regulator, Cyril Roux (inset) restoring confidence in the banking wants to inroduce mortgage caps (Photos: Photocall-Ireland). sector in the wake of the global finan- cial crisis. RBS conceded that it had overstated Bank bosses give frosty reception to regulator’s the amount of top quality capital it held. The adjustment wiped around €5bn in proposals to restrict mortgage lending capital from the bank’s balance sheet – so that it only just passed the test. roposals from the Central Bank Ulster Bank estimates that 68% of When the revised figures are Pof Ireland to restrict how much the first-time buyers mortgages it has applied to the “stressed scenario,” RBS’s banks can lend to home buyers approved this year would have fallen capital ratio fell to 5.7% rather than 6.7% have been given short shrift by the foul of the new proposals. as previously reported – just above the Chief Executives of the Republic’s Calling for the restrictions to be loosened and introduced on a phased test’s 5.5% pass threshold. leading retail banks. A total of 25 euro-zone banks – basis, Jeremy Masding of Permanent Despite the regulator’s concern to TSB said that demand for mortgage including nine Italian banks as well as reduce the risk of a new property bubble Permanent TSB – failed the European finance would fall if the proposed limits following year-on-year rises of 25% in were not amended. Central Bank’s stress tests, with a com- Dublin property prices, a succession bined capital deficit of €25bn. Bank of Ireland boss, Richie Boucher, of bank bosses have warned that new said he was concerned that borrowers Among those who failed the tests mortgage propsals would be unworkable. – conducted over the six months to would turn to unsecured credit to make In its consultation with lenders October 2014 in conjunction with na- up the shortfall in the deposit. which will continue until December 8, tional supervisors – were the world’s While backing the principle behind the Central Bank proposes that in most oldest bank, Italy’s Banca Monte dei the Central Bank’s proposals, AIB Chief cases, banks would have to restrict Paschi with a capital shortfall of €2.1bn, Executive, David Duffy. said that the and Dexia from Belgium with a capital lending to 80% of the value of a home – real issue “is execution and that involves, hole of €339m. subject to a limit of an amount equal to some element of transition so that the ECB Vice President, Vitor Constancio, 350% of the borrower’s annual income. law of unintended consequences doesn’t said the results of the stress tests were The Central Bank’s Head of drive out a sector of the economy.” “credible” and would help to create “a Financial Regulation, Cyril Roux, has Leading politicians have also level playing field for supervision in the expressed concern that the market is weighed in to the debate with both the future.” Although 12 of the 25 failing returning to a place where some borrowers Taoiseach and Tánaiste suggesting that a banks had already taken measures in are taking out loans where their ability requirement for borrowers to find 20% 2014 to address their capital shortfalls, to repay is tenuous. of the purchase price themselves might 13 banks either have to apply the re- Vitor Constancio “These measures have been carefully be onerous. structuring or downsizing or increase considered and, taking past experience In response to these concerns, the their capital in other ways. into account, are being introduced at an Central Bank Governor, Dr. Patrick Head of the ECB’s supervisory arm, appropriate time,” said Roux. Honohan, has indicated that some Daniele Nouy, said that the introduction However, bank chief executives ap- flexibility could be considered to assist of a standard definition of non-perform- pearing before the Oireachtas Finance first-time buyers. ing loans was “a major step forward in Committee recently were unanimous As yet no-one in authority has terms of comparability across banks and in calling for an easing of the proposed shown any willingness to take an countries.” restrictions. alternative approach – by suggesting In order to pass the tests, banks are “The proposals as they stand will some control of property prices – to required to hold a minimum of 8% Core impact on the ability of many first-time ensure that a sufficient number of Tier One assets, and a minimum of 5.5% buyers to buy a home,” said Ulster Bank houses remain within the reach of first- in a stressed scenario. Daniele Nouy CEO, Jim Brown. time buyers. 10 LOOSE CHANGE www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

JPMorgan Chief Executive, Jamie Dimon More job cuts at JPMorgan anagement at major US Even though the Bank Brazil’s world class strikers Mbank, JPMorgan, is to was required to increase staff seek 3,000 more job cuts than involved in risk controls and reg- were previously announced in ulatory compliance, its consumer Bank employees win substantial pay rises banking division will have shed its retail banking division. 27,000 jobs over two years by the after industrial action Its original job reduction end of 2014 – with 18,000 elimi- targets of 2,000 posts in its card, nated in mortgage banking. he national soccer team The members of unions merchant services and auto unit Meanwhile, the headcount in Tmay have disappointed in affiliated to the Confederação and 6,000 jobs in its mortgage its Chase Bank subsidiary is ex- the summer – but Brazil’s bank Nacional dos Trabalhadores do banking unit have increased to pected to be 146,000 by year-end workers proved that they are Ramo Financeiro also achieved 4,000 and 7,000 respectively. – a fall of 11,000 on 2013. world class strikers by securing improvements in other rewards a significant improvement in (including food vouchers). their reward package for 2014 The strike, which began after Ex-AIB COO Boden aims to and 2015. eight rounds of intensive negotia- The workers – employed by the tions between banks and workers country’s commercial banks – re- collapsed in September, was backed launch branchless UK bank cently achieved a 8.5% pay rise and by finance workers’ unions from about fifty different regions includ- ormer AIB Chief Operating a bonus equivalent to 2.2 months’ wages after a nationwide strike ing Brazil’s largest metropolitan Officer, Anne Boden, who lasting seven days. areas. Fresigned from the Group a year ago, plans to launch a new branchless bank in Britain – with a range of services provided Lone Star secures Irish mainly through mobile devices. Backed by digital advertising firm WPP, the as-yet-unnamed lending licence firm will apply to UK regulators for peculation has increased in the liquidators of IBRC. The Start a formal banking licence shortly, Anne Boden Srecent months that US invest- acquisition could be a sign of its according to the Times, and is ment giant, Lone Star, may be intention to manage its loan book expected to launch mid-2015. already lodged with the Financial planning to establish a full- directly. Targeted at 24- to 35-year-olds, Conduct Authority and Prudential service bank in the Republic Meanwhile Lone Star has also the new business aims to attract Regulation Authority. since it has now secured an Irish reached agreement with Britain’s millions of customers within five Created by Anthony Thompson lending licence following its years with a business model closer to of Metro Bank, Atom also plans to Lloyds Banking Group to acquire internet companies like Google or launch next year. In an interview acquisition of sub-prime lender, €1.1bn of non-performing Irish Amazon than to traditional banks. with Computerworld UK magazine Start Mortgages. residential home loans. The sale While the immediate challenge recently, Thompson said the new Observers have noted that, includes 4,000 bad loans, which facing the project is to raise £100m banks should have an advantage in contrast to its previous Irish Lloyds acquired from Halifax-Bank in capital, it is also likely to face com- over their traditional rivals by not acquisitions, Lone Star has of Scotland before the closure of petition from Atom which claims being tied to legacy infrastructure purchased a business with a staff its Irish branches in 2010. to be the UK’s first ‘digital only’ – enabling them to innovate and of 70 along with the loans. Lloyds says it will continue to bank with a licence application bring products to market quicker. Earlier this year Lone Star con- seek opportunities to deleverage tracted Pepper to manage the its balance sheet by reducing non- mortgage book it acquired from core assets. 11 LOOSE CHANGE SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk life trials of the slick & shameless…

Currency traders who don’t give a forex for decen cy and integrity £2bn in penalties levied on five major banks UK’s top director earned a year’s worth he corruption of some of Tthe world’s largest currency dealers was exposed recently of the living wage in just 49 minutes as regulators in the UK, USA and Switzerland imposed fines totalling over £2bn on five lead- fter just forty-nine minutes in So it would have taken just over a ing banks found guilty of rigging work in 2013, Simon Peckham, day for the average chief executive to A foreign exchange markets. Chief Executive of UK investment have earned a year’s worth of the living wage (£7.65 an hour). Describing a “free-for-all culture” company, Melrose plc, had earned on trading floors which facilitated as much pay as a worker on OBSCENE the rigging of markets for five years the living wage earns in a year, “While most workers are suffering con- from January 2008 right up to according to new research from the tinuing cuts in their living standards October 2013, the Financial Conduct Authority (FCA) in the UK and British TUC looking at executive despite the recovery,” said the TUC’s two US regulators, including the pay in Britain’s top 350 companies. General Secretary Frances O’Grady, Commodity Futures and Trading A former RBS employee, Peckham “boardroom pay just gets bigger and Commissions (CFTC), imposed was Britain’s highest paid CEO in the bigger every year. It is obscene that record-breaking penalties on Royal financial year ending in April 2013 – Above: Frances anyone needs to earn more than 2,000 Bank of Scotland, Citibank, HSBC, with an annual salary of £31,157,399 – or O’Grady, General times the living wage. JPMorgan and UBS – outstripping the almost £120,000 a day. This is 2,238 times Secretary of the “Most companies fail to provide level of the previous fines imposed more than a worker on the living wage British Trades Union proper information on how much their for LIBOR rigging. of £7.65 an hour working 35 hours a week. Congress UK staff earn. The Government is com- In the UK, UBS was fined £233m With pay statistics provided by the plicit in this cover-up – as ministers refuse (€296m), with Citibank next on £225m independent researchers from Incomes to make companies publish the kind of (€286m), JPMorgan with £222m Data Services, the TUC study, Executive Top: Simon Peckham, information investors and employees (€282m), RBS at £217m (€275m), and Excess, shows that for the year ending CEO of Melrose plc need to work out the gap between HSBC with £216m (€274m). In the US, April 2013, total earnings for the highest – which specialises boardroom pay and the rest. the regulator fined Citibank and JP paid CEOs of the FTSE 100 companies in acquiring ‘dis- “These shocking new figures show Morgan $310m (€249m) each, RBS averaged £3,195,353 – 230 times the tressed’ businesses. that it is those at the top gaining from and UBS $290m (€233m) each and annual full-time living wage for a the recovery, while living standards are HSBC $275m (€221m). worker outside London. still falling for the majority,” she said. 12 LOOSE CHANGE www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM …because they’re worth it!

Currency traders who don’t give a forex for decen cy and integrity Bank boss is best paid executive in NZ £2bn in penalties levied on five major banks ANZ CEO earns 120 times as much as some of his staff Switzerland’s Financial Market he Chief Executive of ANZ Bank in New Zealand, David Hisco, has consolidated his position Supervisory Authority imposed a as the country’s highest-paid executive with a massive pay rise taking his total annual earn- further penalty of CHF134m (€111m) Tings to NZ$4.22m (€2.65m). on UBS – citing an excessive bonus Hisco’s substantial remuneration package was demanded the introduction of a new working hours culture as one of the key factors in revealed in the recent annual report of ANZ Bank’s arrangement – which would leave his staff not the reckless and unlawful behaviour Australian parent – which recorded his base salary knowing from one month to the next when they of dealers. as $1.3m (€815,000) for 2013 – together with $1.28m would be required to start and finish work. A sixth bank, Barclays, is in dis- (€802,000) in cash, $1.17m (€734,000) deferred as Robert Reid, General Secretary of the First cussion with regulators about the equity, and $480,000 (€300,000) in other benefits. Union which represents staff at ANZ Bank, said penalties it must pay for manipulat- Altogether his total rewards package has risen many employees would find Hisco’s salary difficult to ing foreign exchange markets. by more than 11% from last year’s total of $3.8m comprehend. So far £150bn in fines and legal (€2.38m). So Hisco earns more than 120 times the “That kind of pay is just beyond belief both for costs have been incurred by leading salary of his lowest paid employees. people that work for this organisation and also for the financial institutions, according to Little surprise, then, that his offer of an annual pay general public,” he commented. “No one person can analysts at Morgan Stanley, who increase of less than 3% has been so badly received be worth that amount of money.” believe that in the next two years by his employees – especially when he has also (See Page 33 for more). Britain’s big five banks will incur another £21bn – with other European banks and US firms taking that total to £45bn. Last month’s revelations of the Oz: the ‘great and powerful’ “free-for-all culture” on the trading floors could be repeated soon. Other estpac chief executive, Gail Kelly’s pay climbed to A$12.8m regulators are still investigating the W(€8.9m) in the last financial year, making her the highest-paid foreign exchange markets. boss among Australia’s ‘Big Four’ retail banks. US Attorney General, Eric Holder, According to the bank’s annual report, published last month, over half is said to be close to completing of Kelly’s total remuneration was accounted for by A$7m (€4.9m) worth of another investigation which could previously issued performance shares that vested during the year. lead to both civil and criminal charges Kelly’s basic pay was just over $3m (€2.1m), while she netted another with further penalties for banks that A$2.7m (€1.9m) in short-term cash incentives. have already been fined. Westpac’s competitors, ANZ Bank, reported that its CEO, Mike Smith, received A$10.7m (€7.5m) last year while his counterpart at the Common- wealth Bank, Ian Narev, was paid A$8.1m (€5.7m). While no figures are available for the new boss of National Australia Bank, Andrew Thorburn, it is expected that his remuneration will be similar to that of his predecessor, 13 Cameron Clyne, who received A$7.7m (€5.4m) last year. Westpac’s Gail Kelly CURRENT ACCOUNTS SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk regulation issue TTIPing the balance from citizens to corporations

he Transatlantic Trade and Investment Partnership (TTIP) Tis a free trade agreement between Street theatre in Britain to highlight the threat posed by the Transatlantic Trade and Investment Partnership to the National Health Service (Photo: the US and the European Union, Glyn Thomas). currently being negotiated on behalf of EU citizens by the Euro- pean Commission. Ireland is a very small open economy in Germany, Uruguay, Australia, El and, generally speaking, it is in our Salvador and Ecuador, using similar If it goes ahead it will be the interest to have a rules-based trading mechanims. biggest bilateral trade deal ever as environment. In short TTIP is a manifestation David Begg: TTIP is the US and EU combined constitute But it has to be fair, and TTIP is of an aggressive neoliberalism aimed “profoundly anti- about half of the global economy. anything but fair. In fact the rules are at so circumscribing the policy space democratic.” TTIP will have permanent and stacked in favour of business from the for Governments that politics will be far-reaching implications for govern- beginning. separated from economics such that ment procurement, public services A provision of the deal known as it will matter little what kind of Govern- (including health), finance, food, ‘Investor State Dispute Settlement ment is elected: it will complete the chemicals, the environment, climate (ISDS)’ would allow corporations to subjugation of society to market. change regulation, data protection sue Governments before an arbitration TTIP could result in the align- laws and many other areas. panel composed of corporate lawyers, at ment of European labour markets with Many argue that the TTIP is not which other people have no representa- those of the United States with all the about free trade at all, but rather an tion and which is not subject to judicial inequality and insecurity this implies attack by capital to prise open markets review. - a kind of transatlantic ‘Race to the and deregulate, further entrenching This could allow a US multi- Bottom.’ neoliberalism. national to sue a future Irish Govern- This would serve to re-inforce a According to ICTU General ment for raising the minimum wage on global drift away from mainstream Secretary, David Begg, the TTIP is the grounds that such a policy decision politics. “profoundly anti-democratic” and affected its profits. If you have free trade and free would make it “almost impossible Consider the chilling effect that circulation of capital and people, but would have on Governments and civil destroy the social state and all forms of for Governments to introduce any servants. We would never again as a progressive taxation, the temptations progressive legislation in future.” Congress be able to achieve legislative of defensive nationalism and identity If accepted, he says, the TTIP will change to benefit workers. politics will very likely grow stronger effectively complete the ‘subjugation A number of major corporations than ever in Europe and the United of society’ to corporate needs. are already suing national governments States. INSIDE THE TTIP The main aims of the Transatlantic Trade and Investment Partnership – according to a UK Parliament briefing – are to increase trade and investment by reducing tariffs, aligning regulations and standards, increasing protection for overseas investors, and improving access to government procurement markets by overseas providers. The improved investor protection is to be achieved through the ‘Investor State Dispute Settlement’ – which will give foreign companies a right to take legal cases directly against nation States if those companies believe they have suffered expropriation or discrimination. It effectively puts companies on the same legal footing as nation States. The ambition of TTIP, in fact, goes beyond the relationship between EU and US: its purpose is to impose global rules on trade – as the then European Commission President Barroso put it in a speech in the US earlier this year: “TTIP should become the economic pillar of the EU and US alliance. It should be our joint attempt to shape a fast Former EU Commission changing world and to set the standards of the future. It should act as a platform to project shared EU-US values world- President Manuel Barroso wide with regard to open markets and the rule of law.” 14 CURRENT ACCOUNTS www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM regulation issue

Breaking the code of silence

he new Protected Disclosures New law on The new Act recognises that unions IBOA is currently considering the TAct provides important new protection may also have a role to play in advising terms of a model agreement – incor- rights for all workers in the Republic workers who wish to make a protected porating the provisions of the new Act of Ireland. for whistle– disclosure. Where this happens, unions – which will form the basis of renewed Although employees in the finan- blowers is are required to protect the identity of the engagement with senior managements cial services sector already enjoy some first step whistleblower as far as possible. in all of the enterprises where our statutory protection under the Central members are employed – with a view to Bank (Supervision and Enforcement) towards GUIDELINES transforming the prevailing workplace Act, 2013, if they make disclosures in ending The Government Department spon- culture. The Union is also examining good faith about breaches of financial soring the new legislation – the the training implications on the roles services legislation, the new Act extends climate of Department of Public Expenditure and and responsibilities of senior officials the scope of issues where protected fear at work Reform – is consulting with the Labour and activists under the new law. disclosures may be made and provides Relations Commission to produce additional safeguards to protect whistle- guidelines on best practice for em- MATURITY blowers from being penalised or ployers to develop appropriate policies “Aside from the important new legal suffering discrimination. and procedures to enable workers to precedents like access to interim report reasonable suspicions of wrong- relief and the expanded definition SCOPE doing in the workplace. of workers, the new law sets a positive While the scope of the Central Bank For example, in some employments, tone,” said IBOA General Secretary, Act is limited to breaches of financial a specific member of management may Larry Broderick, “by expecting greater services legislation (and attempts to be designated as the appropriate official maturity from both employers and conceal breaches of that legislation) to receive such disclosures and to initiate workers. Essentially the Act assumes the “relevant wrongdoings” that can an inquiry. In others, this may not be that workers will report their suspicions be reported under the new Protected possible if the identity of the whistle- in good faith and that employers will be Disclosures Act include breaches of blower is to be fully protected. In these keen to investigate these suspicions. other legal obligations, threats to health cases, an external agency may be desig- “The protections of the Act kick and safety or the environment, improper nated to supervise any investigations. in when employers fail to meet these use of public funds, miscarriages of The workplace policy should also expectations,” he said. Most reasonable justice, other criminal offences, as well specify the procedures for keeping the employers understand that it is far better as any attempt to conceal information whistle-blower up to speed with the to address these concerns openly rather about wrongdoings like these. progress of the investigation. than to sweep them under the carpet.” 15 CURRENT ACCOUNTS SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk political economy

Left: The Republic’s Finance Minister, Michael Noonan (Photo: Leon Farrell, Photocall-Ireland).

In addition, the changes at the lower end of the scale with regard to the Universal Social Charge (USC) may well have the unintended consequence of trapping people in lower paid work and preventing them from taking up extra work. Congress views the Budget pro- posals on water charges as a major missed opportunity as it has created a regime which is cumbersome, clunky and barely ameliorates the situation, especially for working families. There are many low paid workers who will see no benefit from these changes.

Lack of ambition on job creation Congress was disappointed at the lack of ambition and failure to make the creation of decent paid work a focus of Republic’s Budget fails key Budget 2015, as this is the only way to guarantee a genuine recovery. The real problem is that our level of tests on fairness and jobs investment is far too low.

he Irish Government’s Budget For example, someone on €70,000 9% VAT rate for hospitality Tfor 2015 has failed the required a year gains four times as much from sector questionable tests on job creation and fairness Budget 2015 as someone on the Mini- The retention of the 9% VAT rate for since the main winners are high mum Wage. the restaurant and tourism sector will earners and major corporations. not make a major impact and the cost While some measures are welcome People earning under €30k lose out to the taxpayer of this measure is highly – like increased investment in social Overall, the combined impact of the questionable, when set against the actual housing, the partial restoration of the changes in rates and bands amounts to number of good, decent jobs created. Christmas Bonus and the increase in by David Begg, a redistribution upwards. Indeed, once General Secretary, Remember, the restaurant and Child Benefit – the fact remains that the water charges are taken into account Irish Congress of catering sector also has a very poor tax changes are regressive and skewed most people under €30,000 are net Trade Unions record of compliance with labour law hugely towards the top end of the scale. losers. and standards. Westminster’s austerity policies exacerbate Northern Ireland’s economic difficulties

orthern Ireland’s current “We have been told that this is “Politics should mean that voters Neconomic difficulties have only the start,” said the ICTU leader. are offered a meaningful choice, and undoubtedly been exacerbated by “Northern Ireland is facing years of adequate representation,” said Bunting. the austerity policies pursued by austerity, of welfare reform, of priva- “Northern Ireland is facing a bleak tisation, of service reductions and job the Conservative-Liberal Democrat economic future for its working poor, cuts, while most political parties still its NEETs, and everyone who needs first Government at Westminister, seriously advocate a massive further tax class public services. Based on the infor- “After weeks of blaming Northern cut for big businesses. mation we have received, this is what is Ireland’s economic crisis on welfare “The economy of Northern Ireland, being proposed for at least another five reform, our politicians have now woken Peter Bunting, its society and its people cannot take the years. up to reality,” said ICTU Assistant Congress Assistant added pressures of austerity on demand “Congress is escalating its campaign General Secretary, Peter Bunting. General Secretary from Westminster. of opposition to austerity and to appeas- “As the trade unions have consis- (Photo: Photocall- “We do not accept that there is no ing the wealthy. We will consult our tently argued, the basis of the crisis is four Ireland). option but to accept this status quo,” he members to ensure a cohesive and deter- years of Westminster-enforced austerity. said. mined response from our movement.” 16 CURRENT ACCOUNTS www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM political economy Congress backs voter registration in preparation for upcoming referendum on marriage equality ith several Constitutional by a number of civil society referenda likely to be organisations including the Irish Wheld in the Republic next year – Congress of Trade Unions. including one on same-sex IBOA General Secretary, Larry marriage – a voter registration Broderick – who also serves on the Executive Council of Congress – said drive was held during November that exercising the right to vote was to ensure that as many people as an important civic responsibility. possible will be able to participate “I have no hesitation in urging in next year’s plebiscites. anyone who is eligible to vote, to Led jointly by the Gay and register with the authorities so Lesbian Equality Network, the Irish that they can utilise the demo- Council for Civil Liberties and the cratic process to extend social and IBOA General Secretary, Larry Broderick, backs the Congress Marriage Equality campaign, the economic equality in Ireland,” he campaign on vote registration ahead of marriage equality Yes Equality drive was supported declared. referendum. Putting the country to rights he Rights Campaign was which should be available to every launched by ICTU Youth young person: T– the Youth Committee of the • the right to a job; Irish Congress of Trade Unions • the right to decent and secure – recently to highlight the need employment; for the plight of young people to • the right to equal pay for equal become a greater policy priority work; in Ireland. • the right to collective bargaining; The campaign has decided to and focus on pursuing five key rights • the right to a future in Ireland. A pay rise for all n estimated 1,500 people took part in a march and rally in the centre of Belfast in October to protest over low pay – Aunder the theme of A Pay Rise for All. The event was organised by the Northern Ireland Committee of the Irish Congress of Trade Unions (NIC-ICTU) to coincide with similar rallies organised by the Scottish TUC in Glasgow and the British TUC in London under the slogan “Britain Needs a Pay Rise.” While the British TUC has reported that average wages in Britain had fallen by £50 a week, in real terms, since 2008, NIC-ICTU points out that Northern Ireland has a higher number of low-paid workers than any UK region. “Almost a quarter of workers in Northern Ireland earn below the Living Wage, and that number is increasing,” said Congress Assistant General Secretary, Peter Bunting. “Getting money back into people’s pockets is essential to a strong IBOA members take part in the NIC-ICTU march and rally in Belfast to recovery. That’s why trade unions are campaigning for action that will demand ‘A Pay Rise for All’ (Photo: Kevin Cooper/Photoline). start to move the economy in the right direction,” he added.

17 CURRENT ACCOUNTS SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk customer focus Consumer body wants inquiry into bank charges and competition he Consumers’ Association of Ireland (CAI) has called for an investigation into the lack Tof competition in Irish banking and the need for greater transparency in current account charges for personal and business customers. The demand follows a call from its counterpart in the UK for a similar investigation into aspects of British banking. The CAI hopes that the new Competition and Consumer Pro- tection Commission (CCPC) – created after the merger of the National Consumer Agency and the Competition Authority – will prioritise the banking sector for Going Postal investigation. The Consumer Association’s Above: Mr. Michael Deputy Chair, Michael Kilcoyne, Kilcoyne, Deputy wants a full investigation of the Chair of the Con- Banks’ obsession with cutting costs risks banks’ treatment of personal con- sumers’ Association sumers and small firms. of Ireland. major damage to their brands “There is clear evidence that Below: Ms. Isolde deliberate strategy designed to limit banks are treating people badly, n a bid to deflect the public Goggin, Chair of the outcry over branch closures, access to face-to-face services – by whether it is the charges for using new Competition I current accounts, people in trouble major retail banks have offered reducing branch staffing levels – and Consumer Pro- so that eventually they will tire of with mortgages or people trying to tection Commission two main arguments to justify set up a business,” said Mr. Kilcoyne. in the Republic. their action. having to queue. “They are not there to serve the cus- Firstly, they say, customers now Then as customers reluctantly tomer any more.” prefer online banking (via mobile switch to online channels, the bank While the new body has yet to phones and PCs) to branches; and can claim that – since footfall and decide whether it will conduct a full secondly, customers who cannot in-branch transactions are down – investigation, a spokesperson for access online services can go to the the branch is no longer viable. the Commission noted that Irish nearest post office for a watered Some banks consider that the banking now offers less competition down version of the face-to-face nearest post office is an acceptable for consumers. service they previously enjoyed in substitute when they close branches. “With increasing fees and the their branches. But whether post offices exist on a removal by the main providers While the banks have offered stand-alone basis or as part of larger of transaction fee-free banking, some statistics which purport to retail operations, few can provide the majority of consumers have support their claims, there is as yet financial advice from qualified staff. been faced with additional costs no independent evidence to suggest Indeed, at times in some con- associated with their day-to-day that customers welcome the closure venience stores which house postal banking over the past few years. of bank branches. counters, the staff may well be “The market is offering con- Indeed the Deloitte retail study school students working part-time sumers fewer and fewer alternatives, (see Spectrum April 2014) suggests who would not be expected to little or no certainty for switchers that the opposite is the case. However, offer any advice. So in many cases and a lack of innovation in terms of many customers appear to be the actual level of banking service ‘clever use’ pricing packages.” driven towards mobile banking by a offered in a post office may amount 18 CURRENT ACCOUNTS www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

to little more than an indoor ATM. aspect of the relationship with their UK Government Outside major towns and cities in customers to rest in the hands of both Britain and Ireland, post offices third-party staff with no particular considers new are rarely sustainable as stand-alone brand loyalty or even familiarity conduct regime businesses. So they are frequently with the bank’s services. found in a wide variety of retail So any competitive edge the bank The British Government has launched premises – like convenience stores believes it may have developed a consultation on proposals to extend and even a public house – like the through some unique selling point the scope of tougher new standards Little Paxton Post Office in Cambridge- will be immediately lost if the cus- of banking conduct to include senior shire located in the village’s Anchor tomer’s abiding experience is of employees of foreign banks working pub (left) or Gilsenan’s in Drumree, standing at a postal counter in a in the UK branches. Co. Meath (below). shop – or even a pub – where the Initially introduced for local banks And even if post office staff bank’s offering is just one of many in 2013, the Senior Managers and manage to develop some familiarity products from a variety of financial Certification Regime enables the with one bank’s financial products institutions – with which the Financial Conduct Authority (FCA) and and services, this will inevitably be counter staff seem unfamiliar. the Prudential Regulation Authority diluted as more institutions seek Of course, it is just possible that (PRA) to fine or sanction senior bank tie-ups with the postal network. this depressing scenario is not an managers for misconduct that occurs And since both the British and unforeseen side-effect of the new in their areas of responsibility. Irish postal services offer their own trend – but a deliberate calculation. The proposals put forward for consultation would apply the Senior range of financial products, then Maybe some of these institutions Managers and Certification Regime it is even more unlikely that they have decided that they are only to all banks operating in the UK. will attempt to push products and really interested in corporate clients services from a particular banking and high net worth individuals. So group. if they happen to lose customers on Above: the Unfortunately it is no longer low and medium incomes as a result UK regulator fines post office in a surprise when banks behave in a of initiatives like this, they are not Little Paxton in myopic fashion in pursuit of short- unduly concerned. Barclays over Going Postal Cambridgeshire term cost savings – especially at the One of the key lessons of the failures in London is located in the expense of staff and customers. growing influence of marketing local Anchor pub. But the striking feature of this within banking is that, when you Gold Fixing Banks’ obsession with cutting costs risks new move by banks to ‘outsource’ are challenged, it is no longer their branch services to the post important to have the right answer: The Financial Conduct Authority in the major damage to their brands Below: Gilsenan’s office is their apparent willingness all you need is an answer. UK has imposed a fine of over £26m Pub and Post Office to squander the benefits of the huge So long as your response appears on Barclays Bank for failing to ensure in Drumree near investments they have made in pro- to make sense at a very superficial adequate management of conflicts of Dunshaughlin interest with its customers – as well in Co. Meath: moting their brands. level, you can avoid being truly as for systems and controls failings – could premises Even though Irish banks spend accountable – in other words, spin! in relation to the London Gold Fixing like these be the many millions each year on advert- It is, of course, a deeply cynical future of branch ising and sponsorship, it seems they approach – and one which does not – the process for setting the price of banking? are content to allow an important augur well for the future of banking. gold on the London bullion market. These failures occurred between 2004 and 2013.

Lloyds agrees penalty to settle LIBOR cases

Lloyds Banking Group is to pay £218m to the US and UK regulators to settle charges of manipulating the London Interbank Offered Rate (LIBOR) and Sterling Repo Rate between 2006 and 2009. According to a spokesperson for Lloyds, everyone involved in the rate manipulation has either left the group, been suspended or is subject to disciplinary proceedings. 19 CURRENT ACCOUNTS SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk culture clash Banks have duty to create fairer society – declares Bank of England Governor f bankers fail to realise their standards – he declared that any who and light-touch regulation had eroded Iobligation to create a fairer failed to achieve high professional stan- fair capitalism, while scandals such as society, then capitalism is at risk of dards should be ostracised. the rigging of LIBOR markets had destroying itself, the Governor of Warning that rising inequality undermined trust in the financial seemed to signal a breakdown in the system. the Bank of England has warned. basic social contract at the heart of “Just as any revolution eats its Speaking at an international capitalism, Carney said: “We simply children,” he said, “unchecked market conference on ‘Inclusive Capitalism’ cannot take the capitalist system, which fundamentalism can devour the social in London recently, Mark Carney produces such plenty and so many capital essential for the long-term complained that major banks had solutions, for granted. Prosperity re- dynamism of capitalism itself. operated a “heads-I-win-tails-you-lose” quires not just investment in economic “To counteract this tendency, approach. capital, but investment in social capital.” individuals and their firms must have Questioning if the behaviour of In the run-up to the financial a sense of their responsibilities for the some traders met acceptable ethical Mark Carney crisis, Carney said market radicalism broader system.” Culture of banking still largely unchanged – warns IMF chief ontinuing failure in meeting Lagarde told an international con- ahead with pay reforms “because the Cproper ethical standards in ference on ‘Inclusive Capitalism’ in behaviour of the financial sector has not banking as well as rising inequality London recently that, even six years changed fundamentally in a number of pose a major threat to growth after the onset of the global financial dimensions since the crisis.” crisis, senior bankers were not only “While some changes in behaviour and financial stability, according resisting reform but also still too focused are taking place, these are not deep or to the Managing Director of the on taking excessive risks to secure broad enough” she continued. International Monetary Fund, bonuses at the expense of public trust. “The industry still prizes short-term Christine Lagarde Christine Lagarde. She called for the G20 to push profit over long-term prudence – today’s bonus over tomorrow’s relationship. “Some prominent firms have even been mired in scandals that violate the most basic ethical norms – LIBOR and foreign exchange rigging, money laundering and illegal foreclosure.” Warning that the perception that EBA to act some of the world’s largest financial institutions are too big to fail has still to be addressed, Lagarde said that on breaches of the issue remained a major source of systemic risk, with implicit public sub- sidies of $70bn (£42bn) in the US, and banking bonus cap? up to $300bn in the Eurozone. Lagarde attacked banks for resisting efforts to reform the financial system to he European Banking Authority (EBA) is reported to be planning to take action allow the biggest financial institutions to Tagainst banks which pay their senior executives cash allowances in order to circum- fail safely. vent its bonus cap. “The bad news is that progress is According to the Financial Times, the EBA is considering a proposal for fixed allowances to be still too slow, and the finish line is still assigned to specific posts rather than individuals. too far off. Some of this arises from the This would mean that banking professionals or traders performing the same role would receive sheer complexity of the task at hand. Yet, the same allowance, regardless of their individual performances. we must acknowledge that it also stems The EBA is anxious to restrict the payment of excessive bonuses which might encourage the from fierce industry pushback, and kind of reckless risk-taking which led to the banking crisis. from the fatigue that is bound to set in at this point in a long race.” 20 CURRENT ACCOUNTS www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM remember

Pattenden enlisted in the Royal Sussex Regiment at Chichester, in September 1906, aged 20. At this time, William was described as being 5 foot 6 inches tall and weighing 141 lbs (10 st 1 lb) with a scar over his left eye. He had dark brown hair, brown eyes and a fresh complexion. Between October 1907 and December 1913 Pattenden served with the regiment’s 1st Battalion in India (Ambular, Rawalpindi, Gharial and Peshawar). He transferred to the Army Reserve in December 1913. According to the Army Statement Bank workers on of Services, Pattenden was formally discharged from the Army Reserve in 1914 the frontline September 1914. Sometime after 1913 he moved to Belfast and joined the Northern Banking by Gavin Bamford Company as a Head Office Porter and Caretaker. At this time he was married ccording to a special feature Soon after, he enlisted in the Army and living at 13 Third Avenue, Belfast. Aon “Ulster and the War - Bank Reserve in Athlone. When war broke out, as a Reservist Clerks in the Army,” the Belfast At the outbreak of war he was im- Pattenden was immediately recalled News Letter of December 15, 1914 mediately called up to serve in the to the Royal Sussex Regiment. With its reported that within the first few 2nd Battalion of the Prince of Wales’s 2nd Battalion, he was sent immediately Leinster Regiment (Royal Canadians). months of what was later to be to France and from there to Belgium. After training, he was sent to France William Patten is commemorated known as the First World War, over with the British Expeditionary Force – 100 bank clerks or employees had on the Menin Gate Memorial at Ypres, where he was killed in action on October the Shankill Road Mission War Memorial either volunteered for service or 20 1914 aged 28. Millett is remembered and on the Northern Banking Company had been ‘called up’ as members of on the Ploegsteert Memorial, Comines- War Memorial in Donegall Square West, the Army Reserve. Warneton, Hainaut, Belgium and on Belfast. Private Michael Millett from the the Bank of Ireland War Memorial in Bank of Ireland was probably the first Gavin Bamford is College Green, Dublin. Further information on banking bank official to be killed in action. Millett a retired Assistant Shortly after Millett’s death, Sergeant memorials is available online at: was born around 1886 in Kilcloney, Co. Manager from William Archibald Pattenden from the http://northernbankwarmemorials. Roscommon and was the son of Colour Northern Bank and Northern Banking Company was killed blogspot.co.uk/ Sergeant James Millett. He would have a member of the in action at Ypres on October 31, 1914. http://ulsterbankwarmemorials. joined the Bank of Ireland around 1902. IBOA. Originally from Tunbridge in Kent, blogspot.co.uk/ Handling Change A history of IBOA

Published by the Collins Press and written by Paul Rouse and Mark Duncan, Handling Change was specially commissioned by the Union. The evolution of the IBOA offers a fascinating picture of Ireland – not least of how banking moved from a thoroughly conservative industry to one so reckless as to bankrupt the Irish State. IBOA has a limited number of copies of the book for sale to members at the special discount price of E10 or £8 (including postage and packing). To order up to two copies at the special discount price, please send your name, address, the number of copies required and your IBOA membership number – together with a cheque or postal order for the appropriate amount to IBOA History Orders at IBOA House, Stephen Street Upper, Dublin 8 or e-mail [email protected].

21 GOING CONCERNS SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk inside iboa

Major website make-over under way major overhaul of the to suit the size of the monitor – to connect to the Union’s services exclusively to members Union’s websites is now being used to view them. websites. only. Aunder way to ensure that they This is not just a matter of a So the make-over of the This initiative is one of a are easier to navigate – with a web page scaling down to fit the Union websites will ensure that number of developments aimed new cooler design. dimensions of a smaller screen: the Union’s online facilities will at ensuring that the Union can The new sites should go live it is about re-arranging all of the always be delivered in the best make greater use of digital in time for the Christmas break elements of a page so that they possible format for members. technology. – so members will have time to are presented in the most effec- The revamp has also afforded The Union’s online activity try out the new look and feel tive way for the viewer. a timely opportunity to rede- has been complemented in while exploring the sites’ addi- The continuing surge in sign other elements of the site recent months by a more visible tional features. popularity of mobile devices like to make navigation smoother presence in social media chan- One of the most noticeable smartphones and tablets, means – and to provide easier access nels like Twitter and Facebook changes will be “screen opti- that more and more members for members to the My IBOA (see below). misation” – which means that are using these smaller-sized area of the website – which uses Your virtual Union can be the appearance of the websites devices – in preference to simple password protection to accessed on www.iboa.ie or will automatically reconfigure laptops and desktop computers provide news and information www.iboa.org.uk Our social partners… Twitter and Facebook growing feature of the Union’s communications activity is the daily tweets and posts on Twitter and Facebook. As well as pro- viding up-to-date news and information directly from IBOA, every day our social media channels also link into other news Asources for stories of interest to our members from the world of banking, finance and trade union affairs. If you are looking for a one-stop shop for all the latest news on the key developments in financial sector, why not follow us on Twitter or like us on Facebook? Follow us on Twitter Like us on Facebook @iboaunion iboaunion 253 followers and counting – 335 likes and counting – Next target: 400 followers by the end of 2014 Next target: 500 likes by the end of 2014 With your support, we can make it With your support, we can make it.

22 GOING CONCERNS www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM inside iboa

Building for the future THE WORKSTREAMS

• Accounts/Membership Work continues after Conference backing Services; • Budgetary Framework Above: The Union’s from members – for various aspects of the ork on the Union’s strategic • Communications; review process, Vision 2020, Special Delegate Union’s future structure and operations. Wis continuing – with a number of Conference in Wex- The four remaining workstreams • Constitution; Executive Committee workstreams ford votes to amend have yet to be activated since they require • Functions of Union; examining various aspects of the IBOA’s Constitution inputs from some of the first seven groups • IBO Holdings; to enable the before they can begin their deliberations. Union’s structures and operations strategic review to These include the workstream on the • Research; with a view to equipping it to meet continue without Union Constitution which cannot begin • Roles/Responsibilities; the challenges of the future. interruption. its work in earnest until conclusions have • Training; The workstreams were established been reached on the recommendations • Union Footprint; and by the Union’s Executive Committee from other workstreams dealing with the • Union Structures/ after a major gathering of Bank District structure and scope of the Union and the Secretaries and Executive Committee roles and responsibilities of its activist Representation Roles. members in May in Wexford. members. In the formal business of the two-day event, the Special Delegate Conference backed four amendments to the Union’s Constitution to post- pone next year’s Biennial Delegate Conference (and the associated proce- dures) by twelve months to enable the Vision 2020 process to continue without interruption on formulating proposals for a new structure and operational model for approval in late 2015. This decision followed Conference presentations from independent con- sultants, Ampersand, on feedback from Putt yourself various stakeholders and on a suggested approach to developing new structures – together with a background briefing in the picture on IBOA’s financial status and prospects from Honorary Finance Officer, Sharon with an IBOA McAuley. The workstream process – estab- Golf Umbrella lished by the Executive Committee to progress the strategic review – is being supported by consultants, PwC. €12 or £10 Seven of the eleven workstreams have been meeting since September and, SPECIAL MEMBERS PRICE as we go to press, are close to making a number of recommendations. See www.iboa.ie or www.iboa.org.uk Each workstream has considered a for more information range of options – including feedback

23 DISCOUNT WINDOW SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk making your cash go further Your IBOA subscription is worth a great deal more

Taking it to a new level Discounts and savings are always welcome – but most especially in times when money is particularly tight. That’s why IBOA has been exploring ways and means to ensure that your take-home pay can go further by achieving better value.

Our IBOAPlus scheme has been a modest attempt in this direction and has produced many worthwhile savings for members. But this month, we are launching a new scheme for members which takes our efforts to a whole new level – both in terms of the savings to be made and the range of products and services available.

The IBOA Group Scheme The IBOA Group Scheme provides special member discounts through an easy-to-use online directory covering hundreds of offers from leading brands and service providers – which you can access from a variety of devices such as desktops, laptops, smartphones and tablets.

The range and value of these discounts is so great that you could more than cover the cost of your IBOA membership subscription by the savings you can make!

The IBOA Group Scheme is free to IBOA members (including Pensioner Members and Associate Members). So even if you are leaving your employment, it will be worth keeping up your link with the Union – for this benefit alone.

Accessing the IBOA Group Scheme Access to the IBOA Group Scheme is via the My IBOA area of the Union websites – www.iboa.ie and www.iboa.org.uk – to ensure that the benefits are available to members only. But don’t worry regis- tering in the My IBOA area couldn’t be easier. You can now use either your IBOA membership number or your employee (bank/work) number to verify your identity. Then set yourself a password and get ready to make great savings!

While you are in the My IBOA area, you can also update your personal details – if you have a change of address or other contact information. You can also set your communication preferences to tell us how you wish to receive news and information from IBOA and to indicate any areas of special interest. 24 DISCOUNT WINDOW www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

25 SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk

MATINEE SOLD OUT – Grand Opera House, Belfast EVENING AVAILABLE Matinee Performance on December 27 Commencing 2.30pm

Tickets: Normal Price: £27 – IBOA Price £17 (Max: 6 tickets per member) GAIETY THEATRE, DUBLIN DECEMBER 27 2014 Tickets: Matinee (1.30pm) Grand Circle €20.60 First come - first served Evening (6.30pm) Parterre €21.50 Members are restricted to a maximum of six tickets each Book online at www.iboa.ie/services/eventsdiary or www.iboa.org. uk/services/eventsdiary Book online at www.iboa.ie/services/eventsdiary

Cork Opera House January 3, 2015 Matinee @ 2.30pm

SOLD OUT

Bord Gáis Energy Theatre, Dublin December 20 2014: 7.30pm Special IBOA Price: €45/£36 per ticket Special IBOA Price: €19 per ticket Members are restricted to a maximum of six tickets each Members are restricted to a maximum of six tickets each Book online at www.iboa.ie/services/eventsdiary Booking form available for download or www.iboa.org.uk/services/eventsdiary at www.iboa.ie/services/eventsdiary 26 www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM iboa events

Family Time IBOA’s Family Zoo Days once again proved highly popular during the summer and autumn months. Tayto Park has now taken its place alongside Dublin and Belfast Zoos and Fota Wildlife Park near Cork as a firm favourite with our members and their families. In total 2,245 adults and 2,365 children availed of free admis- sion to Dublin Zoo, with over 800 adults and children at Belfast Zoo; and 582 adults and 624 children at Fota. Meanwhile 1,325 tickets were bought for Tayto Park at a special discount price for IBOA members.

27 BANK NOTES SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk bank of ireland

Key Elements of the New Agreement Pay For all staff in employment on December 1, 2014: – 1.75% pay rise with effect from December 1, 2014 backdated to July 1 2014; and – a further 2% pay rise with effect from January 1 2015. Lump Sum Payment A lump sum payment equivalent to 5% of annual salary in recognition of sacrifices made by members over the last six years and to facilitate the introduction of a new Career and Reward Framework for the future. Rewards for Qualifications The attainment of certain professional qualifications will be recognised through specific adjustments to salary. New Career Framework & Band Structure A new Career Framework with new minima and maxima will replace over 360 existing pay scales. During 2015 all members will be migrated to the appro- priate new bands with a potential to progress further. Management has reassured IBOA that all our members’ terms and conditions of employment will be protected. Milestone deal o n pay Future Pay IBOA will negotiate with management on an annual basis for cost of living increases as well as perfor- mance-related awards. and career prog ression Reassurance Management has given an assurance that everyone in embers throughout Bank of Bank of Ireland will have a place in the new structure MIreland Group have voted and all existing agreements with IBOA – including to back a new pay deal negotiated those relating to job security – will continue. between IBOA and the Bank’s senior management with the assis- tance of an independent mediator. Union General Secretary, Larry The Union’s objectives at Broderick, has described the new the outset of the talks pay and career framework as “an IBOA Diary 2015 important milestone on the road • Clarity around employee roles and responsibilities; The 2015 IBOA to recovery within Irish banking – which also sets an important prece- • Clear and transparent career Member’s Diary is dent for other financial institutions.” paths for all employees; mailed directly to Following the outcome of the • Proper recognition and reward all members at their IBOA ballot, around 6,000 staff for professional qualifications; home addresses with in Bank of Ireland Group will • Recognition of the employees’ this issue of Spectrum. receive an increase of 1.75% this contribution to the Bank’s month, back-dated to July for recovery and acknowledgment Pensioner and 2014, with a further 2% increase of employees’ entitlements; and associate members due next month for 2015. Staff will • Appropriate framework for may apply for a diary also receive a once-off lump sum remuneration of members now payment equivalent to 5% of their from Jane Higgins, and into the future. current salary – in recognition of Administration their contribution to the Bank’s and IBOA, will also provide an Manager, IBOA House, return to profitability this year. intelligible and consistent career Stephen Street Upper, The framework agreed in Bank path for all employees – with due Dublin 8 on 01- of Ireland after six months of in- recognition for relevant professional 4755908 (from ROI) tensive talks between management qualifications. or 02890-200130 28 (from NI & GB) or [email protected] BANK NOTES www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM danske bank Seven more branch closures in Danske Bank

anske Bank’s senior management outlined plans for a total of seven branch closures Din three separate announcements since the summer. Branches in Cregagh Road, Belfast; Shankill Road, Belfast; Dungiven; Holywood; Kircubbin; Lisnaskea and Maghera are the latest Danske locations to close their doors in Northern Ireland. Danske management has assured IBOA that no redundancies will result from these closures – as staff are to be redeployed elsewhere within Lisnaskea Branch the Bank. eleven years – from 95 in 2003 to 47 by the end The Union has also sought details of man- of 2014. agement’s plans for retail banking in 2015-16 as “While we welcome the fact that all staff soon as they are finalised. affected by these closures will be redeployed After the latest closures have been com- within the Bank, we remain concerned about pleted, Danske Bank’s branch network in the continuing trend of branch closures in Irish Milestone deal o n pay Northern Ireland will have been halved in banking,” said IBOA General Secretary, Larry Broderick. “Independent research suggests that cus- New upskilling tomers wish to retain the option of interacting with human beings in branches as well as cyber- and career prog ression programme agreed banking online or by mobile phone. “Banking through the Post Office is not It also includes very clear A new upskilling programme is to be introduced really an effective substitute since customers bargaining arrangements through for some branch-based customer advisers in are unlikely to have easy access to qualified or which future remuneration will be Danske Bank which will provide opportunities experienced financial advisers,” he added. determined from 2016 onwards. for further professional development, recogni- tion and reward – including a potential salary The role of the Post Office in delivering banking “Now that Irish banking has at service is discussed further on page 18. last been stabilised after the wide- increase of up to 5%. scale restructuring since the financial crisis, it is timely that we begin to look to the future,” said the IBOA leader. “With many new roles and THE POWER OF responsibilities emerging and At this crucial period in the history of Irish banking, it significant recasting of existing is vital that the independent voice of finance workers functions, it is important that this is as strong as possible. changing environment is reflected in our members’ career structures In order to improve our bargaining power in the crucial and the accompanying rewards. negotiations – with employers, government and regulatory “This decision marks a new authorities – it is essential that we all continue to build IBOA beginning – rather than the end – The Finance Union by encouraging our colleagues to join. of our negotiations with the Bank Many members are already taking the time to do this. on this issue – since the migration of staff from the plethora of exist– As a token of our appreciation for these efforts, the Union is ing grades and scales to the new offering a shopping voucher worth €50 or £35 to any members simplified bands will be negotiated who signs up three new members to IBOA. It’s a win-win for you: between IBOA and management a nice reward and a stronger Union. during the early part of 2015 before talks on pay for 2016 begin towards For more information, contact Gareth Murphy at the end of the year. IBOA House by phone on 01-4755908 (from the Republic of Ireland) or 02890-200130 (from Northern Ireland or Britain) or e-mail: [email protected] 29 BANK NOTES SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk ulster bank Negotiations on pay at Ulster Bank

he Union’s Ulster Bank nego- tiating team – led by Senior TIndustrial Relations Officer, Gerry Hanna, has been engaged in intensive negotiations with the bank’s senior management on the issue of pay. Union General As we go to press, it appears Secretary, Larry that a set of proposals may emerge Broderick, back- shortly. If that transpires, then the ing wider engage- proposals will be put to our members ment in AIB in Ulster Bank to ballot for their final determination. Engagement on Ulster Bank’s branch at Gortin – where local residents are lobbying to reverse the closure plan (Photo: The Newsletter, Belfast) restructuring continues More closures s ought lster Bank’s senior management has been asked by the Union to review nion representatives continue Uits proposals to close ten more branches in Northern Ireland by the Uto engage with the bank’s senior end of February along with fourteen branches in the Republic by the end of management over the recom- the first quarter of 2015. mendation from the independent “The planned closures are not in the latest tranche of closures will be mediator, Mark Connaughton, SC, the interests of customers or staff,” the last for the foreseeable future. on a framework for restructuring in said IBOA General Secretary, Larry “At the start of 2014, Ulster Bank Ulster Bank. Broderick, “especially considering Chief Executive, Jim Brown, said in The Union has sought clarifica- Ulster Bank Chief that the Bank has now returned to an extensive media interview that he tion on a number of points where Executive, Jim Brown. profitability – with positive results in envisaged 39 branch closures across the mediator has departed from the each of the first three quarters of this the Group over the next three years. terms of earlier agreements – to the y e ar.” If the latest proposals go ahead, it will detriment of our members. This latest announcement comes take the number of locations – in the wake of 16 branch closures in either already closed or earmarked Northern Ireland since the summer for imminent closure – to 40,” said Lombard Ireland of 2013 along with 21 locations in Broderick. to transfer into the Republic. “While we note the Bank’s com- While no job losses are antici- mitment that no further closures are Ulster Bank pated from the closures in Northern anticipated in 2015, we believe that if Ireland, the Bank’s senior manage- the Bank wishes to avoid heightened enior management at RBS sub- ment has indicated that 47 job losses uncertainty for customers and staff sidiary, Lombard Ireland, has would be sought as a result of the in other branches as a result of this Sgiven the Union advance notice closures in the Republic. latest announcement, it should give of its intention to transfer all of “Job losses are never welcome – a categorical assurance that no more the company’s remaining business especially at a time of high unem- branch closures are in the pipeline – into Ulster Bank’s Asset Finance ployment,” said the Union leader. at least until the end of 2016. division. IBOA’s Senior “However, we note management’s “While IBOA is continuing in This development would result Industrial Relations commitment to ensure that any job talks with management on a com- Officer, Gerry reductions will be implemented on a prehensive agreement on future in the transfer of all staff to Ulster Hanna Bank under the relevant legislation. voluntary basis with no necessity for change within Ulster Bank, we need Management has given a com- compulsory redundancies.” greater clarity from management mitment to full consultation with Apart from raising issues about about its future intentions to ensure the Union. While preliminary the alternative arrangements to be that the outcome of these negotia- discussions have begun, detailed put in place for customers in the tions offers the best possible solution arrangements – including transfer affected areas, the Union wants Ulster for all of the Bank’s stakeholders – date(s) –have yet to emerge. Bank’s management to confirm that including staff and customers.” 30 BANK NOTES www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM aib group Up to 100 job losses likely in AIB GB restructure

anagement in AIB (GB) has Mannounced plans to restruc- ture its operations in Britain with up to 100 voluntary-led job losses in 2015. Under the plan, the Wolver- hampton branch is to close – while staffing levels elsewhere in the branch network will fall. Management has pledged to consult fully with IBOA and to apply the terms of last year’s recommen- Ulster Bank’s branch at Gortin – where local residents are lobbying to reverse the closure plan (Photo: The Newsletter, Belfast) Photo: Sasko Lazarov, Photocall-Ireland) dations from the Labour Court and Pay talks under Labour Relations Commission. More closures s ought FPCs accept PLANNED way in AIB Labour Court BRANCH CLOSURES recommendation Northern Ireland alks on future pay and rewards The ten branches earmarked for Thave begun between IBOA and on functional cars closure in Northern Ireland are AIB’s senior management after a Aughnacloy; Crumlin Road, framework was agreed in the wake he Labour Court’s final Belfast; Donaghadee; Dundonald; of the announcement of positive Trecommendation on a proposal Gortin; Newcastle; Newtown- half-yearly results for AIB Group by AIB management to remove hamilton; Portstewart; Randals- showing a pre-tax profit of €437m. functional cars from Financial town and Tandragee. The discussions involve a Planning Consultants was accepted The five closures announced fundamental review of employee by our members in a ballot. earlier this year for Northern rewards – taking account of a range Senior Industrial Relations Ireland were Lisburn Road and of factors like the cost of living, Officer, Billy Barrett, said that the Lombard Street, Belfast; Finaghy; progression within the bands, the Senior Industrial Union had exhausted the industrial Rathcoole/Newtownabbey and Bank’s financial performance, pay Relations Officer, relations process – since the proposal Hillsborough. increases elsewhere in the sector, Billy Barrett was first mooted over a year ago – performance management and other in its efforts to secure an acceptable Republic of Ireland relevant considerations. outcome. In the Republic the fourteen “In view of the wide-ranging “Although what emerged branches now under threat nature of these discussions, it is from the Court was clearly not are Ashbourne; Athboy; Athy; likely that they will continue our preferred solution, the recom- Ballinrobe; Castleblayney; Castle- into 2015,” said Senior Industrial mendation has delivered the best rea; Clones; Croom; Ferbane; Relations Officer, Billy Barrett. result that could be achieved under Loughrea; Manorhamilton; the circumstances.” Moville; Roscrea and Wicklow. The seven branch closures in the Republic announced earlier Engagement at AIB this year were Clane; South Mall, Efforts to enhance the quality of engagement between AIB management and the Union Cork; George’s Quay, Inchicore, have continued throughout 2014 – in line with the wide-ranging recommendations and Kimmage, Dublin; Granard of the Labour Relations Commission and Labour Court in 2013. and Pearse Road, Sligo. Three New arrangements are being developed which will include structures to ensure that sub-offices also closed in Clara, workplace issues can be resolved in a timely and satisfactory by Union representatives Co. Offaly; Enfield, Co. Meath dealing directly with local management. A formal announcement of these new arrange- and Lifford, Co. Donegal. ments is anticipated in the near future.

31 CREDIT LINE SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk ibrc Against the odds IBRC workers win new settlement he year-long struggle of our members in the Irish Bank Resolution Corporation (IBRC) to secure fairer severance compensation was Trewarded with a special loyalty payment based on service – rather than earnings – so that the payments were weighted to favour staff on lower earnings. The deal was brokered by independent mediator, Kieran Mulvey, of the Labour Relations Commission. The IBRC workers’ campaign began Through their sustained efforts in February 2013 when their previous over many months, the IBRC workers redundancy arrangements were uni- refused to allow the issue to die. laterally set aside as the company Even when their plight no longer entered into “special liquidation” at the featured in the media, the workers behest of the Irish Parliament – leaving ensured that the pursuit of a fairer deal staff with only statutory redundancy remained a live political issue. terms and effectively cutting their In this way they ensured that when severance payments by at least half. the opportunity arose, the Union was in Though relatively few in number a position to push for a resolution with and working for one of the “most broken the mediator, the Government and the banks in the world,” our members special liquidator. nevertheless maintained pressure on “While I have expressed our grat- key political representatives in both itude for the patience and creativity the Republic of Ireland and Northern of the mediator, Kieran Mulvey, our Ireland – garnering support from many members in IBRC deserve special com- of their non-union work colleagues mendation for their determination, along the way. their discipline and their profession- The lobbying effort included e-mails alism throughout this difficult time,” and letters facilitated by the IBOA web- said General Secretary, Larry Broderick. sites – as well as face-to-face meetings “Their exemplary commitment was The statue of Queen Maeve outside the IBRC head office in with politicians in their constituencies rewarded with proposals that were over- Burlington Road, Dublin (Photo Mark Stedman Photocall and in Parliament. whelmingly accepted in a ballot,” he said. Ireland). A helping hand for sick children from IBOA his year the Union’s annual charitable donations are being Tgiven to three children’s hospitals – Temple Street Hospital in Dublin, the Royal Belfast Hospital for Sick Children and Great Ormond Street Hospital in London. “Christmas is always a difficult time to be ill,” said Honorary Finance Officer, Sharon McAuley, “but for children it is especially tough. “So this year the Union has decided to support three children’s hospitals in each of the main jurisdictions where IBOA is active. “We are pleased to be able to donate €4,500 to Temple Street, £3,500 to the Royal in Belfast and £2,000 to Great Ormond Street – as a token of our appreciation of the tremendous work done by the medical staff and all the support staff in these hospitals in caring for some of our most vulnerable citizens.” 32 CREDIT LINE www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM organisation Raising standards

aising Expectations (and Raising RHell) is the title of Jane McAlevey’s by Gareth debut autobiographical account of Murphy, union organising as the former Lead National Organiser of the SEIU’s Organiser Healthcare Division in the US. A second account is to follow IBOA soon and is much anticipated by or- ganisers from the trade union and Pictured right: community sectors and anyone Gareth Murphy working to improve the lives of (left) with US trade working people. union organiser, Jane McAlevey. McAlevey fought and won some She also devoted considerable standards in working conditions for of the best union contracts for private resources and time to identifying and healthcare workers across the US. sector nurses in some of the most anti- winning the trust of the natural leaders Jane’s unique insights were shared union States in the US. Her modus in each workplace (even individuals who recently with organisers and activists operandi was simple: talk to workers, were non-union or even anti-union at from IBOA, the Communication organise workers and lead workers into the start). She also opened up the Workers’ Union and Mandate over two struggle. collective bargaining process in new days recently during a visit to Dublin. But it was in her innovative tactics democratic and participatory ways. Her inspirational contributions pro- and techniques that she showed real Bucking the trend of declining voked excellent feedback – leaving the creativity and ingenuity. She developed union density in the private sector, her participants even more committed to sophisticated matrices for evaluating the local union branch organisation grew strengthening the union in the work- strength of union organisation in the in numbers, in negotiating strength and place in order to make a positive and workplace. in political influence establishing new lasting difference for members. Begg set to SPECSAPPEAL retire FORIBOAMEMBERS he General Secretary of the Irish Congress of Trade Unions, TDavid Begg, has decided to retire from the post in March 2015. Begg’s impending departure had been public knowledge since July 2013 €30 off glasses from the €149 range or above when he advised delegates attending in the Irish Republic ICTU’s Biennial Delegate Conference ((BDC) in Belfast that the assembly would be his last as General Secretary. £20 off glasses from the £99 range or above The only question was the timing of his retirement. And with the next Congress in Great Britain and Northern Ireland BDC scheduled for July 2015, Begg has decided to step aside to allow his suc- cessor three months to “settle in” before For your SpecSavers discount voucher, call taking centre stage at the Conference. 0(0-353-)1-4755908 or 0(0-44-)2890-200130 Thefift h ICTU General Secretary, Begg has occupied the position since 2001 when he succeeded Peter Cassells. The ICTU’s General Purposes’ Committee – the officer board of Congress – has been tasked with man- aging the process to find a replacement. 33 FOREIGN EXCHANGE SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk worldview

Joaquín Almunia (above) EU Commission vice- EU Commission president in charge of competition FIFA overlooks migrant policy said: “Unlike imposes €93.9m in previous cartels we found in the deaths and abuse fine on four banks financial sector, this one did nions have condemned a report of a FIFA investigation into the selection of Qatar to host the 2022 World Cup that concluded there he European Commission has not involve any Uwere only minor concerns that “were not serious enough to warrant re- imposed €93.9 m ($120m) fine collusion on T a benchmark. opening the process.” on four major financial institu- Rather, the four tions – RBS, UBS, JP Morgan and Human rights groups and unions Qatari regime to prevent the plight of banks agreed on campaigning to hold Qatar to account migrant workers being revealed,” he Crédit Suisse – for manipulation of an element of the for the mistreatment of the migrant said, calling for a reform of the country’s interest rates through illegal cartels. price of certain workforce in the country said these con- labour laws. JP Morgan received the largest fine financial cerns had been ignored by FIFA. Steve Murphy, General Secretary of €62m ($79m) for manipulating Swiss derivatives. Global union confederation, ITUC, construction union, UCATT, said the franc Libor benchmark interest rate “This way, the has warned that 4,000 workers – mainly FIFA report “is a disgrace and sickens in an “illegal bilateral cartel” with the banks involved migrant labour – could die building the me that FIFA has spent their entire time Royal Bank of Scotland (RBS). could flout the infrastructure for the event to be hosted navel gazing and looking at their own RBS managed to avoid penalties of market at their by Qatar in 2022. bidding process, when the real issue is €110m as it acted as the whistle-blower competitors’ Stephen Russell, writing in the the terrible way in which migrant con- before the Commission. expense. Cartels British TUC’s Stronger Unions blog, struction workers are being exploited in UBS has been fined €12.7m while in the financial noted that the emphasis on corruption Q at a r.” Credit Suisse have to pay €9.2m for sector, whatever was a diversion. A new report from Amnesty Inter- engaging in the cartel with JP Morgan. form they take, will “On the other hand, we have full, national concludes Qatar’s authorities As the four banks agreed to settle not be tolerated.” corroborated proof that hundreds of “are lagging severely behind on efforts the case with the Commission, they migrant workers return home in body to address the rampant abuse of migrant secured a 10% reduction. bags, despite the best efforts of the workers’ rights.” Be a Member Organiser for IBOA! Building the Union by improving participation and recruiting more members is vital to increase IBOA’s bargaining power with individual employers and with governments and regulators. So we would like to invite you to volunteer to become a Member Organiser in your area. As a volunteer Member Organiser, you will receive training and support from the Union’s Organising Unit to enable you to: • profile your workplace; • engage with members and non-members; and • ultimately build the Union’s strength in your area. You will also be able to participate in the Member Organisers’ incentive scheme – which will recognise your efforts in tangible ways. Not only is this a great development opportunity for you to become more involved in the Union – but it will also assist the Union to meet the many challenges facing our members.

For more information, please contact our Lead Organiser, Gareth Murphy in IBOA House or by e-mailing [email protected]

34 FOREIGN EXCHANGE www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

European banking job numbers fall further

Staff numbers in Europe’s biggest lenders fell by a further 1.2% in the first half of the year, according to data compiled by Reuters, with little prospect of an upturn any time soon. Analysis of figures for 25 of Europe’s 30 largest listed banks reveals that headcount fell at sixteen during the first six months of 2014. Although the other nine reported increases in staff, there was a net loss of 21,135 jobs across the 25 banks.

Bank of Holy Spirit NZ bank workers smell a rat …moves in mysterious ways Stoppage highlights derisory offer from ANZ bank The EU Commission has approved the embers of New Zealand’s First Above: the star of “We note (ANZ) CEO David Hisco’s multi-billion-euro State resolution MUnion, employed by ANZ the picket at the comment that this extraordinary profit plan for the troubled Portuguese Bank, engaged in two one-day bank’s head office “has been driven off the back of a highly lender Banco Espirito Santo (BES). stoppages recently to highlight in Wellington was a engaged workforce,” said Gay. “That Proposed by Banco de Portugal, giant inflatable rat. their outright opposition to the highly engaged workforce deserves a the €4.9bn rescue plan includes split- Many of the better deal than a pay offer which is ting BES into ‘bad’ and ‘good’ banks, latest proposals from the Bank’s strikers also wore well below what other major banks have senior management after a series of masks of ANZ Bank settled on this year.” while protecting depositors and other members’ meetings had recorded a CEO, David Hisco, Contact centre and back office clients. massive 96% vote for rejection. and carried placards workers employed before September First Union – which represents urging him to “come 2010 are being offered a 2% wage in- around 1,300 ANZ workers – is live in our world” – crease for each of the two years – while currently in negotiations with the bank in a parody of the other staff are to receive increases of 3% BoA faces mortgage over a renewed employment agreement. bank’s slogan: “We and 2.75%. A central concern for the workers live in your world.” Earlier this year, workers at business penalties is management’s proposal for more Westpac, ANZ’s main rival, achieved a ‘flexibility’ that would leave staff with no 3.4% increase for each of the two years. A New York State judge has levied regular work pattern or set starting and “ANZ have been busy telling the penalties of $1.3bn on Bank of finish times from one month to the next, public they only want a few people in America (BoA) for fraud over a according to Maxine Gay, First Union’s some branches on unpredictable and loan production programme by its Retail and Finance Secretary. changing hours,” said Gay. “However Countrywide Financial unit. She said predictable hours were that’s not what they’re demanding over essential for a secure family life. the bargaining table. If that’s what they She said ANZ management should say they want, then let’s see an offer that show its workers more respect. A big reflects that.” Citi reaches $7bn rise in profits at the bank should be First member, Helen Packwood, reflected in a better pay offer and more said that management’s proposal for deal over sale of security around hours of work. more flexible staff contracts and annual Statutory profit at ANZ Bank’s New pay increases of just 2.75% to 3% were faulty mortgages Zealand operations have risen by nearly not good enough. 25% from $1.37 bn last year to $1.71 bn. She said the offer of an annual pay Citigroup has announced a $7bn deal rise of up to 3% pales next to CEO, with the US authorities to settle an David Hisco’s own pay rise. investigation into its alleged sale of With a 2013 salary of $4.1m, up mortgage-backed securities in the 14% from 2012, Hisco is the highest paid executive in New Zealand. run-up to the 2008 financial crisis. “How can you get a 14% pay rise According to Reuters, Citi is to and give us a 3% pay rise?,” asked Helen pay $4bn in cash to the US Justice Packwood. “And you’re already on Department, $2.5bn in consumer $4.1m per year. I mean, come on - share relief, as well as $900m more to the love, David, share the love!” resolve inquiries by five States as well as the Federal Deposit Insurance Corporation. 35 LIFE COVER SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk safety feature

The guide aims to ensure that workers undergoing treatment or returning to the workplace after treat- ment receive all the necessary help and support in terms of time off and work arrangements. According to Congress Legal Affairs Officer, Esther Lynch, who prepared the guide – with support from the Irish Nurses and Midwives’ Organisation and SIPTU’s health division – the aim It’s your right of the publication was to assist workers and their unions to negotiate Time off to work in Work Plans (TWPs) that minimise the financial impact of taking time off for safety and treatment and recovery. “We now know that there is life during and after cancer and the guide security! will hopefully make that experience a better one for those undergoing treatment. BOA’s Safety, Health, Welfare “Help from the union to negotiate Iand Security (SHWS) Committee the necessary time off can make all the aims to work with members and difference. An agreed TWP can be of employers to create healthier, enormous help. Every person’s situation safer working environments. is unique – but we know that workers IBOA has produced guidelines want more control and flexibility in how on your rights under health and they take time off for treatment and safety legislation in the Republic and recovery and more can be done to Northern Ireland. support workers when they return to These can be accessed on the w or k .” IBOA websites by following these ICTU General Secretary David links: New ICTU guide Begg added: “In Ireland more than • www.iboa.ie/knowyourrights/ seven women a day are diagnosed with yourrightsroi/healthsafety.html for the breast cancer and this condition can also Republic of Ireland; and to assist workers affect men, but to a lesser degree. • www.iboa.org.uk/knowyour “Even a decade ago, we wouldn’t rights/yourrightsni.html for Northern be having conversations about people Ireland. returning to work after treatment, even If you have any questions or con- with breast cancer less about how we could best adapt their working environment after treatment. cerns about health, safety or security “There is still a long way to go. But in your workplace, please contact he Irish Congress of Trade Unions has launched a this represents significant success for a member of your local health and new guide on how best to assist workers diagnosed unions which have long campaigned safety committee in the first instance. T with breast cancer and other serious illnesses, during their for better treatment and screening for If there is no health and safety treatment, recovery and return to work. people affected in this way.” committee in your workplace, please contact one of the following members of the Union’s National There are no late fees and Committee: over 15,000 titles to choose Łukasz Adasik (Bank of Ireland), from. Elaine Barker (Bank of Ireland), Carmel Curran (First Trust Bank), Screenclick is Ireland’s leading A special 10% discount is Paul Gilmartin (AIB), Eileen Gorman online DVD and Blu-ray rental (Danske Bank), Paul Harty (Bank available for IBOA of Ireland), John Keaney (Bank of service. members. Ireland), Jaynette Stirling (UBG-NI), You simply sign up and select the movies you want Kate Varley (AIB) or Billy Barrett, to see and we post them to your home. As soon For more information IBOA’s Senior Industrial Relations as you are finished you return in the FREEPOST check out your IBOA Group Officer. envelope provided and we send the next title from Scheme through the You can contact the Committee My IBOA area of the Union by e-mail at [email protected] or by your list. It is far cheaper than renting from the websites. phone at 00-353-(0)1-4755908 or high street with all the latest new releases. 00-44-(0)2890-200130. 36 LIFE COVER www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM safety feature

Pictured at the recently organised a seminar in con- Congress seminar junction with the Republic’s Health on mental health – and Safety Authority, to increase aware- which was held in ness among trade union officials and IBOA House recently activists of the issues arising from – were (from left) Dil mental health and to begin mapping the Wickremasinghe, supports, training and guidelines that Frank Vaughan, unions need to support members who Emily Logan, Kahlil experience these issues. Thompson Coyle, Chairing proceedings, broadcaster, Ciara Miley, David Dil Wickremasinghe, said that “the Joyce, Sally Anne workplace is the final frontier in our Kinahan and Brenda journey towards breaking down stigma O’Brien. in Ireland. “Conversations are happening around kitchen tables, in classrooms, in communities, at national level in the corridors of power and in the media. “However, for a long time I have been very aware at the lack of con- versations about mental health in the Research by the EU workplace,” she said. Agency for Safety “Is it any wonder as the recession and Health at Work has made people very wary about letting indicates that 10% their mask slip and showing their vul- Congress workplace safety seminar hears that: of work-related nerability at work. However, stigma in illness is stress- the workplace existed way before the related – costing recession but it just got worse as the re- EU employers an cession brought the fear of losing one’s job and livelihood.” Mental health is key estimated €20bn Among the other contributors to a year. the seminar were Brenda O’Brien of concern at work Over 40% of the European Agency for Safety and employers consider Health at Work; Emily Logan recently ccording to the Republic’s Equality Authority the greatest barrier that psychosocial risks appointed as Chief Commissioner of employees and potential employees with experience of mental health more difficult to the Irish Human Rights and Equality Adifficulties encounter is the attitudes that others have towards mental manage than Commission (which has taken over the role of the Equality Authority); Ciara health difficulties. ‘traditional’ risks. The primary Miley from See Change, Patricia Murray If they lack knowledge or under- prejudice or bias against employees from the Health and Safety Authority; obstacles cited by standing about a disability or mental with disabilities, including employees and Kahlil Thompson Coyle, from the health condition, employers and co- with experience of mental health employers are ‘the National Office of Suicide Prevention. workers may have fears and concerns. difficulties. sensitivity of the Sally Anne Kinahan from Congress Unfortunately, that lack of knowledge As part of the European Week for issue’ and ‘lack of offered a trade union perspective on the or understanding can manifest as Safety and Health at Work, Congress expertise.’ issues.

Vhi Healthcare is the only specialist health insurer in Ireland with over 50 years’ experience. We have plans for every pocket and every lifestage.

As well as plans covering health insurance, we also have travel and dental insurance... as well as minor injury SwiftCare Clinics in Cork and Dublin.

Give us a call at 1850 211 558 quoting reference no. 5429/25 and our IBOA membership number to discuss your options... we can help you with your choice with no fuss...just facts!

Vhi Healthcare – when you need us, we’re there

37 FIXED INTEREST SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk game time THE PRIDE OF BALLYHAUNIS

Three times an All Star

All photos by Inpho: Higgins (above) and Ó hAilpín by James Crosbie; Cooper and Donaghy by Morgan Treacy; and Cummins by Donall Farmer.

BOA member, Keith Higgins, recently became the first Mayo footballer to win three GAA-GPA All- Star awards. However, the Ballyhaunis native – who works for Bank of Ireland in Castlebar – regards Career Honours Ithe 2014 season as a failure because Mayo fell short in the pulsating All-Ireland semi-final clashes with Kerry. Though widely acclaimed as great expectations heading into the game. Hurling is Keith’s first love. FOOTBALL one of the best defenders in Gaelic semi-final with Kerry. But, as Mayo is traditionally, a foot- GAA-GPA All Stars Awards Football, Higgins was surprised to Two titanic games ensued – balling county, there are very few (2012, 2013, 2014) receive a third All Star award in a each requiring extra time – before opportunities to play regularly at 3 row when named at left corner- Kerry edged into the final where the highest level. Connacht Senior Football back in the All Star Team of the they beat Donegal for the title. However, while still an Under Championships (2006, 2009, 6 Year – since he believed his form The narrowness of their defeat 21, Higgins was selected to play on 2011, 2012, 2013, 2014) this season was not at the level he to the eventual champions left many the Galway-dominated Connacht Connacht Under-21 Football had achieved in 2013. Mayo players and supporters won- team which won the Railway Cup 1Championship (2006) While neutral observers may dering about what might have been interprovincial series in 2005. All-Ireland Under-21 Football disagree with him about the quality with the one that got away. And when his football schedule 1Championship (2006) of his performances, there can be The decision of Mayo manager, allows, Keith continues to turn out Railway Cup little doubt that in a team sport – James Horan, to step down after the with the hurlers at his club, Bally- title (2014) the performance of the collective loss to Kerry added to the general haunis – winning seven county titles. 1 is bound to have a huge bearing air of disappointment in the county. And earlier this year, he com- Sigerson Cup on a player’s assessment of his own For a player who has received pleted a Railway Cup double – with 1title (2005) achievements. so much personal acclaim, it is a Connacht’s footballers – to become GPA All Star Young After securing their fourth little surprising to discover that the first Mayo player to win dual 1Footballer of the Year (2006) Connacht title in a row, Mayo had football is not really his favourite titles in both hurling and football. HURLING All-Ireland Junior Hurling SOME OTHER RECENT IBOA ALL-STARS 1Championship (2003) Connacht Junior Hurling 1Championship (2003) National Hurling League 1Division 3 title (2005) Railway Cup 1title (2005) Christy Ring Cup 1All Star (2008) Colm Cooper Kieran Donaghy Brendan Cummins Seán Óg Ó hAilpín 38 www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM cinematique The final chapter Hobbit trilogy reaches epic final he third instalment of Peter TJackson’s movie adaptation of Tolkein’s classic fantasy, provides an epic finale to the adventures of As he succumbs to dragon-sickness, Above: Sir Ian As darkness converges on their Bilbo Baggins, Thorin Oakenshield the King Under the Mountain, Thorin McKellen (left) escalating conflict, the races of Dwarves, and the Company of Dwarves. Oakenshield, sacrifices friendship and as Gandalf and Elves and Men must make a choice – Due for general release next honour in his search for the legendary Cate Blanchett as either unite or be destroyed. Bilbo finds month – just in time for the Christmas Galadriel in Peter Arkenstone. himself fighting for his life and the lives holidays – The Hobbit: The Battle of Jackson’s The of his friends as five great armies go to Unable to help Thorin see reason, the Five Armies, is the concluding part Hobbit: The Battle war. of Jackson’s labour of love. Bilbo is driven to make a desperate of the Five Armies Stars of the final film include con- The Dwarves of Erebor have and dangerous choice, not knowing tinuing cast members, Martin Freeman, reclaimed the vast wealth of their home- that even greater perils lie ahead. Richard Armitage, Sir Ian McKellen, land, but now must face the consequences An ancient enemy has returned to Cate Blanchett, Elijah Wood, Orlando of having unleashed the terrifying Middle-earth. Sauron, the Dark Lord, Bloom, Evangeline Lily and Benedict Dragon, Smaug, upon the defenceless has launched legions of Orcs in a stealth Cumberbatch while Billy Connolly also men, women and children of Lake-town. attack on the Lonely Mountain. makes an appearance.

Valid at over 200 cinemas in the UK and Ireland SPECIAL OFFER FOR IBOA MEMBERS IC Cinema Tickets Republic of Ireland: Adult €6.80 Child €4.60 Northern Ireland and Great Britain (excluding London): Adult £4.60 Child £3.65 London: Adult £7.00 Child £4.50 The majority of people living in the UK and Ireland are no more than 20 minutes away from one of the participating cinemas. For the full list, see www.iccinema.co.uk/

IC Cinema Tickets can be ordered by phone at 00-353-1-4755908 or 00-44-2890-200130

39 FIXED INTEREST SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk cinematique

Bailed out: Peter Coonan as David Drumm and and Morgan Jones as Seán FitzPatrick The Guarantee in The Guarantee. INEZ: ix years ago the impending collapse of the “systemically important” he film, Inez – A Challenging SAnglo Irish Bank led the Government of the day in the Republic to TWoman, grew out of an inter- guarantee the bank’s holdings along with its domestic competitors. Those view Inez McCormack gave to her events set in train a chain reaction of austerity involving tax hikes, spending friend, journalist Susan McKay, in cuts, pay freezes and worse – taking on an almost mythical quality October 2012 shortly after learning bordering on the surreal. that she had inoperable cancer and In an attempt to understand how the proach into a more cinematic sensibility. just a few months to live. One of Ireland’s leading trade interplay between the economic forces However, the film retains some unionists and human rights cam- and the individuals personalities pro- elements – more typical of the theatre paigners, Inez died in February 2013. duced the guarantee, journalist Colin – like some of the actors playing more The core of this moving and Murphy conceived the play, Guaranteed, than one role – which may be confusing thought-provoking film is Inez’s final which was staged to great acclaim by the for some viewers. While it is possible interview in which she reflects on her Fishamble Theatre Company – having that this choice was dictated by budg- life, her achievements, and her regrets, originally been conceived as a short etary considerations, it could equally as she contemplates her untimely death. piece for Fishamble’s Tiny Plays for be argued that the use of actors in more But as Susan McKay explains, Inez’s Ireland season. than one role was designed to symbolise approach to the interview was not to Energised by the publication of the the overlap between the Anglo bosses, close the book on her life – but to con- Anglo Tapes in the Irish Independent, the regulator and the Government. tinue to do what she had always done: the audience response to the play – which Peter Coonan (Fran in RTÉ to challenge those in authority and encourage others to carry the struggle included a lengthy question-and-answer Television’s Love/Hate) plays David forward. session after each performance – was so Drumm with Morgan Jones as Seánie Born into a conservative Protestant intense that former Irish Film Censor Fitzpatrick. David Murray plays the home in Holywood, County Down, Inez and screen producer, John Kelleher, role of Finance Minister Brian Lenihan became one of the most dynamic union concluded that Murphy was tapping – sincerely trying to do his best despite officials in modern Irish history. into something important. being out of his depth in financial terms, She became a champion of the With support from the Irish Film while Gary Lydon’s portrayal of the then working class women who had formerly Board, TV3 and the Broadcasting Taoiseach, Brian Cowen, is based almost largely been ignored by the trade union Authority of Ireland, Kelleher set about entirely on caricature – rather than on movement and was elected the first the task of bringing Murphy’s account to attempt at documentary realism. female President of the Irish Congress film and television audiences. With ex- Anyone who missed the cinema Journalist and of Trade Unions (ICTU). perienced director, Ian Power, assisting showing should have an opportunity to screenwriter, Colin In 1998 she played a pivotal role in persuading people from some of the Murphy in expanding his theatrical ap- see it on TV3 in the near future. Murphy 40 FIXED INTEREST www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM cinematique

A Challenging Woman most divided communities in Northern Top left: union Fresh out of college, she became a which works with marginalised com- Ireland to support the Good Friday leader and human social worker in West Belfast, and found munities and groups to enable them Agreement by insisting that equality rights activist, Inez herself working with people experiencing to participate in economic and social and human rights should be at the heart McCormack some of the worst deprivation in western decision-making in order to improve of the accord. Europe. When her bosses threatened to the quality of their lives. The work of In 1968, Inez left home intent upon Top right: (from left) close the office, Inez turned to her union PPR – which has achieved international seeing the world. She had got as far as Hilary Clinton, Inez for help. Within a few years she was a recognition has been described by Mary London when, in a bar, she met the man McCormack and full-time union official organising hun- Robinson as “ground-breaking.” she would spend her life with, Vincent Meryl Streep in dreds of low paid women as members Inez: A Challenging Woman features McCormack, a student from Derry’s New York at a of NUPE (now UNISON) and inspiring interviews with her widower, Vincent, Bogside. performance of them to action. along with President Michael D Higgins Together they took part in the Seven – in which A talented and effective leader, Inez and former President Mary Robinson. anti-Vietnam riots at the American Inez was played by was also an instinctive strategist. She Rosaleen Davidson, who first met Inez Embassy in Grosvenor Square, and set the Oscar-winning knew that to bring about social change, when she was a domestic worker in off to hitch around Europe. However, on actress. she needed to build alliances and net- Belfast’s Royal Victoria Hospital, speaks seeing newspaper coverage in Portugal works. Over a career lasting almost 50 of her inspirational leadership. of events in Derry in October 1968, they years, she gained the support of some of Former US Secretary of State Hillary knew they had to return home. the most powerful people in the world Clinton tells of Inez challenging her They became ardent members of for campaigns for the rights of some of while she was First Lady, with the mem- People’s Democracy and the Civil Rights the most powerless. orable question “Who’s not at the table?” movement. As her friend Michael Farrell Yet her courage came with a cost. Meryl Streep, who played Inez in the – a student leader at the time and now a “There is no joy in being the first woman theatrical production, Seven, also pays human rights lawyer, – says in the film, in anything,” she says, reflecting on how tribute to Inez as a “towering figure.” by taking a stand Inez cut herself off she dealt with the abuse in public life The 32-minute film also features from her community and her family. On without getting destroyed or bitter. a wealth of freshly discovered archive one march, she and a cousin who was a She reveals that when as a signatory material, including Inez speaking to policeman encountered each other but to the MacBride Principles, she cam- the New York State Legislature and looked away. paigned for US companies to ensure fair appearing at the first ICTU women’s Inez talks in the film about how employment practices in their opera- conference. Produced and narrated by that “summer of love” turned her into a tions in Northern Ireland, she and her Susan McKay, and directed by Trevor passionate campaigner for the rights of Journalist, Susan family were subjected to intimidation Birney and Eimhear O’Neill, the film the most marginalized people in society. McKay, who is now and threats at home. won the Best Short Documentary Award But she did not speak for them – she Director of the Inez also founded the remarkable at the recent Galway Film Fleadh – and encouraged and empowered them to National Women’s organisation, PPR – Participation and has been acquired by BBC Northern speak out for themselves. Council of Ireland Practice of Rights – in Northern Ireland Ireland for broadcast in the near future. 41 FIXED INTEREST SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk prize crossword

A prize of €50 will be awarded to the first entry drawn ACROSS DOWN from our post bag after the closing date. 1. Large Egyptian tomb (7) 2. Foodstuff usually made 5. Retailing (7) from curdled milk (7) 10. Old (4) 3. Film sound (5) 1 2 3 4 5 6 7 8 11. Travel guides (10) 4. Was unaware of (7) 9 12. Speculation (6) 6. Motor (6)

10 11 13. Knight of Round Table (8) 7. Waste receptacle (6,3) 14. Present (9) 8. On edge (7) 16. Chasm (5) 9. ______Waugh, author (6) 12 13 17. Farm animals (5) 15. Unconventional (9) 19. Entrance (9) 18. Besmirch (7) 24. Limbs of large plants (8) 20. Response (6) 14 15 16 25. Baked item (6) 21. Upper case (7) 27. Lack of regard (10) 22. Large paved area – usually

17 18 19 20 21 22 28. Egg-shaped (4) involving split levels (7) 29. Domestic fowl (7) 23. Pure (6) 23 30. Slang for prison (7) 26. Violent commotion (5) 24 25 26

Name……………………………………………………………… 27 28 Union No………………………………………………………… Address…………………………………………………………… 29 30 …………………………………………………………………… …………………………………………………………………… PREVIOUS SOLUTION E-mail Address…………………………………………………… Across: 1. Friends; 5. Forever; 10. Ross; 11. Vaudeville; 12. Stolen; Employer…………………………………………………………… 13. Dietetic; 14. Broadway; 16. Smash; 17. Swede; 19. Contusion; 24. Innocent; 25. Rachel; 27. Toleration; 28. Rota; 29. Regards; 30. Goodbye. Branch/Dept………………………………………………………

Down: 2. Rooster; 3. Easel; 4. Divined; 6. Opened; 7. Epidermis; 8. A prize of €50 will be given to the sender of the first correct Eclairs; 9. Tundra; 15. Andromeda; 18. Winsome; 20. Obtain; 21. Toronto; entry drawn from our post bag on January 16, 2015. Entries 22. Overtly; 23. Reward; 26. Cured should be sent to Crossword, Spectrum, IBOA The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. The winner of the compeititon in the previous issue was Deirdre Twomey A photocopy of the grid is acceptable if you prefer not to cut up of Blessington, Co. Wicklow – who successfully negotiated the glitch in 14 the magazine. Across.

10% of all products and services for IBOA members and their families.

For more information, check out the IBOA Group Scheme in the My IBOA section of the IBOA websites.

42 FIXED INTEREST www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM picture board

2 3 4

1 5 6 7 Use the first letter of the surnames of each of the seven celebrities pictured to spell out the surname of a famous literary figure. Answers on a post card, please, with your name, postal address, e-mail address and IBOA membership number to Picture Board, Spectrum, IBOA The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. A prize of E30 will be awarded to the sender of the first correct entry drawn from our post bag on January 16, 2015. The winner of the last Picture Board quiz was John Hanratty of Dundalk. The answers to the seven clues were McGrath, Anderson, Norton, Doherty, Elba, Lynott and Ahern - giving the name, Mandela. sudoku A prize of €30 will be awarded to the sender of the first correct entry drawn from our post bag on January 16, 2015. All entries 8 3 7 9 should be sent to Sudoku, Spectrum, IBOA The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. You can submit your entry on a photo­­copy of the grid – if 7 9 8 2 you prefer not to cut up the magazine. The winning entry for the Sudoku Challenge in the last issue was submitted by Tony Clarke of Newtownards, Co. Down. 4 3 7 1 9 3 Name…………………………………………………………… 7 8 2 Union No……………………………………………………… Address………………………………………………………… 2 1 ………………………………………………………………… 9 8 4 6 ………………………………………………………………… E-mail Address………………………………………………… 1 2 9 8 Employer………………………………………………………… 3 8 9 2 Branch/Dept…………………………………………………… 43 FIXED INTEREST SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk game time with george hamilton Reasons to be cheerful One: O’Neill – Two: O’Neill – Three: Schmidt

t was Forrest Gump’s momma who always said that life is like a Ibox of chocolates, you never know what you’re gonna get. It’s been a bit like that with the Republic of Ireland recently. You can never be quite sure just what is going to turn up. So it is that they find themselves in danger of being cut adrift in their European Championship qualifying group just ninety minutes of football after achieving what few others are likely to in depriving the World Cup-winning Germans of two home points. Eaten bread is soon forgotten, they say. October’s mighty comeback in Gelsen- kirchen counts for little now as the four- month winter break unwinds, and there is ample time to reflect on the trouble in Paradise. Celtic Park lived up to its nickname if you’re a Scot, but for Martin O’Neill, in the visitors’ dressing room for the first time, it must have felt more like Purgatory. And it had all been going so well. The team had shown resilience in both its away fixtures, and all that was In other circumstances, a first away Northern but significantly they have already drawn missing from the expected demolition defeat in three wouldn’t seem quite so Ireland’s skipper, in Poland. of Gibraltar at the Aviva was a record bad. What makes this one more difficult Steven Davis, I still believe the glass is half full. in the scoring department (8-0 against to deal with is the fact that it was inflicted bursts past Frodi Straight after the Scottish disappoint- Malta thirty-five years ago during Eoin by the team most likely to be vying Benjaminsen, ment, Martin O’Neill put out a com- Hand’s time as manager remains the directly with Ireland for a place in the his Faroe Island’s pletely fresh team against the USA whose high water mark). Finals in France. counterpart, at starting line-up featured nine players But then came a conspiracy of Put simply, for Ireland to qualify now, Windsor Park, who had been in the squad that reached circumstances that cost the team dear. assuming Germany and Poland both do, Belfast in the the last 16 in the Brazil World Cup. Glenn Whelan’s injury suffered during they either have to end up with more recent Euro 2016 They more than held their own, and the Germany game – a misfortune whose points than Scotland overall, or ensure Championship when McGeady and McClean, the two consequences on that night in the Ruhr the defeat in Celtic Park is cancelled out qualifier.(Photo: regular wingers, and then Shane Long have not been fully acknowledged, for by a home victory over the Scots in June. INPHO/Presseye/ were introduced, they consolidated and the hosts had failed to break down Ireland Unfortunately, the road immediately Jonathan Porter). while he was on the pitch – hadn’t healed ahead is fraught with danger. Though the ran out comfortable winners in the end. sufficiently in time for the visit to Glasgow. next two fixtures are at home – against The debut performances of Cyrus That coupled with the continuing absence Poland in March, and Scotland in June Christie at right back and in particular of James McCarthy (who hasn’t played – they really are matches that must be David McGoldrick, operating just behind since the opening game in Georgia in won. But then, was that not always the the main striker will have encouraged September) left O’Neill short of options. case? Scotland’s victory has just made the manager. Robbie Brady offered Into the mix came Scotland’s recent the focus that bit more sharp. adventure from a new position at left form. Gordon Strachan had banished the With four rounds of matches now back. Anthony Pilkington was the most tag of underachievers since taking over completed, Germany, Scotland and the impressive he’s been in his eight appear- twenty-two months previously. Now with Republic all sit together on seven points ances. And Stephen Quinn enhanced a settled side, Scotland had lost only once behind Poland who’ve already beaten his reputation in the squad. in nine outings, a narrow defeat in Germany at home and lead the group Much will happen between now and Germany. Whatever kind of row the with ten. the next time O’Neill sits down to pick a ducks were in, it wasn’t one of Martin Poland are the only unbeaten team team, but at least he knows where to turn O’Neill’s construction. so far. Scotland’s defeat came in Germany, if injuries deal him a poor hand again. 44 FIXED INTEREST www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

By the time the island’s two foot- ball teams kick-off again, the RBS Six Nations trophy will have found a new home. Or will it? There’s every reason to believe it will be staying in Dublin. The Guinness Series that began with a first victory over South Africa since Croke Park in 2009 and ended in such thrilling cir- cumstances with the win over Australia that confirmed Ireland’s status as third in the world rankings and pushed the Wallabies down to fifth – as low as they have been since this benchmark was established in 2003 – gave Ireland its first autumn clean sweep in eight years. More importantly, it confirmed what’s been widely believed: that under Joe Schmidt’s management, this is as good an Ireland team as we’ve ever seen. Brian O’Driscoll may be gone, but Jonny Sexton is still there, and around him there is a galaxy of talent, from the ageless captain Paul O’Connell (is he really 35?) right through to the number 15, Rob Kearney. It can’t be overlooked either, that this hat-trick – Georgia were the other victims – was achieved without half a team, sidelined with injury. The Rugby Writers’ Player of the Year Andrew Trimble is still on crutches recovering from a toe problem. Cian Healy and Sean O’Brien were missing as well. So too Keith Earls, Fergus McFadden, and Donnacha Ryan. Add Dave Kearney and Luke Marshall to the list and you’ve There’s also the intriguing possibility failure of the top seeds Greece to find an idea of the straitened circum- Ireland’s Jamie stances in which Ireland had to perform. that the emergence of Christie, who has any kind of form under Claudio Ranieri. Heaslip outjumps missed only one of Derby County’s A home defeat by the Faroes cost him Perform they surely did, and if the Luke Jones of nail-biting conclusion to the Australia matches in their march to the top of the his job after only four months in charge. Australia in the English Championship, might persuade By contrast, Michael O’Neill’s match had the memory bank coughing recent Guinness up coinage of the last gasp capitulation the manager to deploy Séamus Coleman Green and White Army hit the ground Series test at the further forward. running, making history by winning to the All Blacks on the same weekend Aviva Stadium, twelve months previously, then the out- And Martin O’Neill will not shirk three qualifiers, something Northern Dublin (Photo: come this time was highly significant. the brave call when it comes to selection. Ireland had never been done before. INPHO/James Not only can they take control of The decision to leave Robbie Keane on Defeat in Romania – without their Crombie). a game, as they did early on against the bench in Glasgow was the right one. inspirational captain Steven Davis – was Australia. Ireland can deal with the By his own admission, Keane isn’t suited a setback. But their nine points from setback of a spirited comeback to rise four games puts them second behind to the role of target man. O’Neill had to again. And what’s more, they can seal cut his cloth, and sadly it was somewhat Romania in one of the qualifying places. the deal. This Ireland is never beaten. threadbare. Keane would have been a Northern Ireland too must wait Conventional wisdom suggests luxury he couldn’t afford. for March to see action again at home that in the odd years the title is more That said, there’s a good nucleus to Finland, whose only victory so far winnable since there are no away games now. But the game against the group came in the Faroes. With Greece virtu- in London or Paris. Be that as it may, there leaders will be a real test – one that, if ally out of the running at this stage, that is also the issue of form. Ireland have hopes of France the following summer leaves just Hungary – already beaten by shown this autumn how good they are. are not to fade, cannot be failed. Northern Ireland in Budapest – in touching The impression is building that – to With the extended format for the distance of Michael O’Neill’s team. use a phrase Paul O’Connell employed European Finals in place, Northern Romania visit in June and if Northern to much hilarity when accepting the Ireland were entertaining the serious Ireland can regain the momentum of Rugby Writers’ Team of the Year award ambition of progressing to a major their opening games in those two home on the squad’s behalf – Ireland are on championship for the first time since the fixtures, they’ll be well placed to claim the right trajectory. World Cup in 1986. The cause has by one of the two automatic qualifying This is Irish rugby’s Golden Age. no means been hindered by the abject spots. Changed days indeed in Belfast. There is every reason to be cheerful. 45 FIXED INTEREST SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk stephen malone

FIFA President, Sepp Blatter Assault and Blattery! o matter how much negative media attention the behaviour of Mary Wilson, presenter of Drivetime on RTE Radio 1 Nbanking executives attracts – as in the foreign exchange rate (Photo: Marc O’Sullivan) rigging scandal – it seems that they will inevitably be upstaged by those other gnomes from Zurich – the International Federation of Football Associations, otherwise known as FIFA, with its colourful boss, Sepp Blatter. The curse of Drivetime Just when the public relations soccer bureaucrats – to announce teams of the major international that they have decided they are banks were working on ways to innocent of all charges of corrupt Ulster Bank sponsors radio show switch the news cycle in order practices in the controversial to limit the damage to the already decisions about the staging of the he employees of Ulster Bank must be hoping that their bosses’ battered reputations of their 2018 and 2022 World Cup tour- Tdecision to sponsor RTE Radio 1’s early evening news maga- institutions along comes the gift naments in Russia and Qatar zine, Drivetime, is not a bad omen for the future of the financial that keeps on giving – Sepp and his respectively. institution in the Republic. Former New York District Drivetime’s most recent com- Attorney, Michael Garcia con- mercial sponsor was Danske Bank ducted the FIFA inquiry – which – which has disappeared as a retail was limited in scope as a result of presence in the Republic’s cities and The cookie lack of co-operation by some of towns and now operates instead the main players. And of course, as a niche lender in the corporate he has hotly disputed Blatter’s banking area. crumbles… interpretation of his report. One of Danske’s Drivetime But Sepp is not only completely predecessors was the British-based shameless – having recently de- multinational, HSBC – whose as Bank takes biscuit clared that FIFA “has an exemplary operations in the Republic employ organisation on ethics” – he is also around 400 staff focussed primarily t may not have an obvious connection with banking – but the completely impervious to any crit- on corporate banking, treasury and Ihumble cookie is part of Ulster Bank’s campaign to restore icism of his rule over the beautiful global markets. Such a specialised its standing with the public. game. area of finance does not seem to be After the reputational damage that arose from the IT meltdown in the summer of 2012 – not to mention the ongoing speculation about the most obvious fit for a prime- QUIDQUIPS time daily radio show with a mass the extent of the restructuring of the Bank’s branch network and other audience. services – the Bank’s promotional team appears to have decided to Your man Noah was really “sweet-talk” the public with cookies. quite the investor. Think The biscuits form part of a bigger promotional effort as the Bank was about it: he succeeded in QUIDQUIPS the lead sponsor of the Belfast Arts Festival at Queens which ran from floating stock while every- Borrow money from a pessi- October 16 to November 1 and whose musical programme opened with thing around him went into mist: they don’t expect it back. the Ulster Orchestra and closed with the sensational traditional music group, The Gloaming. liquidation. – Anonymous – Anonymous 46 FIXED INTEREST www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM

Megasoft?: Satya Nadella No need for pay claims: women should trust in karma – says Microsoft CEO he chief executive of Micro- soft who recently advised Tfemale executives not to ask for pay rises, is himself on a package worth more than $84m. Satya Nadella received $79.8m in stock options when he took over More infallible than the Pope the top job earlier this year, as well as a basic salary of $919,000 and a bonus of $3.6m. Or why the CEO of a bank is always right Just over $7m of the stock options were paid in the 12 months to June as part of Mr Nadella's – even when he’s wrong! annual package. The $79.8m figure also includes a one-off “special re- he latest batch of Anglo detailed information on a serious revealing that the emperor indeed tention award” worth $13.5m and TTapes – featured in the Irish financial situation – there is also had no clothes – seemed to cause a long-term stock performance Independent recently – did little vitriolic abuse for Morgan Kelly fury among senior bankers. bonus worth up to $52.9m. The last to advance our understanding of UCD who had the temerity Former Anglo CEO David two bonuses are payable between to suggest that the economic Drumm believed that the UCD of the events that led up to the now and 2021. orthodoxy of the day was based on economist was guilty of “treason” banking crisis in 2008. The revelation of his remuner- a property bubble that was bound for undermining confidence in Irish ation package follows his rather They did, however, provide to burst with catastrophic effect. banking. unfortunate remarks to a con- further insight, if it was needed, Even though senior executives In the circular logic of many ference last month that women into the mindset of some of those in Anglo must have known in their senior banking executives at the should rely on “karma” – rather who occupied pivotal positions heart of hearts (assuming of course time any dissent or contrary views than asking for pay rises. in Irish banking at the time. that they had them!) that the writing are intolerable. “It's not really about asking for The image of senior executives was on the wall for the bank, they So even if they are driving a the raise,” he said, “but knowing and as supremely arrogant and at times continued to try to convince them- bank or the wider economy onto having faith that the system will quite delusional, gains additional selves that it was not so – apparently the rocks, CEOs should be above actually give you the right raises traction from the Independent on the basis that if they could some- reproach because this criticism – as you go along. It’s good karma. It coverage. how bluff it out, they might come as opposed to their own actions – will come back.” Aside from a barely concealed out the other side. might harm the bank’s reputation. Nadella has since apologised contempt for their own board Even though Kelly was a fairly That’s a level of infallibility for his comments, which he said members – who are deemed either lone voice at the time, his efforts that even a Pope might hesitate to were “inarticulate” and “completely unworthy or incapable of receiving to blow the whistle, in effect – by claim! w ron g .” 47 Glennons_IBOA_Portrait_09Oct2014.pdf 1 10/14/2014 10:54:57 AM

C

M

Y

CM

MY

CY

CMY

K