Spectrum June 2009 by Seamas Sheils

The QuarTerly Magazine froM iBoa â&#x20AC;&#x201C; The finance union

ALL TOGETHER NOW!

Even rock stars need a union Thom Yorke, Radiohead

JUNE 2009

INSIDESTORIES

june 2009

4-5

6-7

10-11

SHORTCUTS

COVERSTORY

NEWS

16-17

IBOANEWS

20-21

22-23

IBOANEWS

UNIONGUIDE

IBOANEWS

SPORTSSOCIAL

Goggin’s pay-off • Credit ratings • Banking online • New debt management code • Public trust UK banks

Madame President: Margaret Browne becomes only the second woman to hold the Presidency in IBOA history

Bank of Ireland: Staff reject Bank’s stance and refer issues to mediator • No award recommended for Staff Stock Issue

There’s power in a union – UK rock stars get organised

Ulster Bank: members back new terms for restructure • Pay issues refereed to mediator • Managing Sickness • Overtime must be paid

Who’s who on the IBOA Executive Committee 2009-20011?

UK Regulator gets tough • Rise in complaints to UK Finance Ombudsman

Danske Bank: NIB moves on some aspects of pay • Enhancing worker participation

BDC: Delegates back major shift in banking culture • Freeze on Union dues • EU unions aim to reduce inequality in banking

Irish regulator under fire • UK pension consultants back call for worker directors

ClearCo staff win improved severance terms • Carillion staff secure pay rise • Election for IBOA District Secretaries • INBS staff get organised

At home with the Premier League champions

What a Waste!– hain’s $1,400 paper basket • British bosses target working mums for sack.

AIB: Staff back interim mediation proposals

Don’t be afriad to mention the War: Belfast members visit Munich

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IBOA - THE FINANCE UNION

INSIDESTORIES

2009 june

26-27

UNIONPEOPLE

YOUTH

On the road to one million: Motor-bikers raise €800,000 for charity in just four years • IBOA Golfer of the Year

Getting down to business

30-32

LIFESTYLE

SOUNDINGS

34-35

36-37

SIGHTINGS

SPORTINGLIFE

Save: Energy, Money, Earth

Public Enemies – Robin Hood robbing banks in the Great Depression • The alchemists of catastrophe • Banksters

Cereal offenders: All sweetness and… salt! • Stay Safe in the Sun

Test your brain power with the Spectrum prize crossword and the sudoku challenge.

Rock of Ages: American legends and a Canadian maestro

Two Irish teams for South Africa? – with George Hamilton

Spectrum is published by IBOA – The Finance Union, IBOA House, Stephen Street Upper, Dublin 8 and 29, Malone Road, Belfast. BT9 6RU. Telephone: 00353-1-4755908 and 0044-28-90382905 info@iboa.ie www.iboa.ie General Secretary: Larry Broderick Honorary Secretary: Tommy Kennedy Communications Manager: Séamas Sheils Advertising enquiries to Anna O’Doherty or Louise O’Donnell in IBOA House. Spectrum is printed on recycled paper and wrapped for posting in oxy-degradable polythene at W & G Baird, Antrim, Northern Ireland. IBOA - THE FINANCE UNION

NAMA heralds major change for finance sector The Republic’s new National Asset Management Agency (NAMA) – which is likely to be legislated into existence during the summer – is intended to take over the management of up to E90 billion in property loans and assets (both performing and non-performing) from the six Irish-owned banks covered by the State guarantee on deposits and liabilities. It is intended that NAMA will acquire the loans at a significant discount from their stated value – reflecting to some degree the collapse in property prices. The object of the exercise is to free up capital for financial institutions to begin lending into the Irish economy again. While details of the precise workings of the Agency have yet to be finalised, IBOA’s concern has been to minimise the impact of the possible transfer of assets of this magnitude on the jobs of bank staff currently working on handling this business. Following representations from the Union to a range of bodies – including the Irish Government, Department of Finance, the acting senior management of NAMA, the Central Bank and the Financial Regulator – it appears that the day-to-day handling of this work will largely remain within the financial institutions – with a small number of NAMA staff acting in a supervisory role. Some adjustments may be necessary in cases where a borrower has received loans from a number of institutions which are secured against the same asset. Similarly, the same assets may also have been used as collateral on loans from both Irish-owned and non-Irish-owned financial institutions. For this reason, among others, NAMA may also consider buying loans from the Irish units of foreignowned banks on a case-by-case basis depending on the complexity of the relationships between the borrower and the various institutions concerned. IBOA’s General Secretary, Larry Broderick, said that the creation of NAMA was taking the financial services sector in Ireland into laregly uncharted waters. “The unprecedented nature of the financial crisis means that nothing quite like this has been attempted anywhere in the world. There are no precedents to draw upon: no templates to follow,” he said. “IBOA has argued very strongly that the expertise of bank officials will be absolutely critical in this process. We have also lobbied the relevant authorities to try to ensure that any potential impact on employment is kept to an absolute minimum. The response to our efforts has so far been encouraging,” he added.

SHORTCUTS

june 2009

Brian Goggin

Goggin paid E3m last year Bank of Ireland’s former Chief Executive, Brian Goggin, was paid over E3m in the year up to March, 2009, according to the Bank’s recently published Annual Report. On top of his basic salary for last year of E1.17m, he also received an additional payment of E1.4m “in lieu of notice” since he resigned in February a year early. Brian Goggin also triggered an option in his contract allowing him to receive his full pension – worth E650,000a-year – without actuarial reduction, at age 58. The Annual Report also reveals that Goggin’s successor as Chief Executive, Richie Boucher, received E1m last year as Head of the Bank’s operations in the Republic of Ireland – down from E1.46m in 2007-8. His current salary has been capped at E500,000 by the Minister for Finance since Bank of Ireland is one of the six institutions covered by the Irish State guarantee.

Standard & Poor’s headquarters in Lower Manhattan, New York

Standards poor: ratings agencies deserve no credit The recent decision by credit ratings agency, Standard and Poor’s, to downgrade the Republic of Ireland’s credit rating from AAA to AA+ and to place Ireland on “negative watch” has no doubt caused some consternation in Dublin. Likewise, the agency’s decision to place the UK “on negative watch” – with a warning that it may not be able to keep its triple A credit rating – may even have been a contributory factor in the decision of British premier, Gordon Brown, not to replace Alistair Darling as the Chancellor of the Exchequer, as he was widely expected to do in his recent Cabinet reshuffle. However, what is probably more surprising is that these credit ratings agencies have any credibility at all. After all, their consistent over-rating of various sub-prime mortgage packages in the US

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was one of the major triggers for the meltdown in the worldwide financial services sector – and with it, the global economy. The major ratings agencies recently appeared before a US Congressional committee to try to explain how they had repeatedly managed to give gilt-edged guarantees to many of the highly toxic loan instruments. Although their performance before the US legislators was far from convincing, somehow their pronouncements on the credit worthiness of sovereign States still seem to be treated with something other than the contempt that they might reasonably deserve.

Banking on line on rise The use of online banking in the Republic of Ireland has increased significantly in the last year, according to research carried out for Halifax. A survey by Amarach Research found that 39% of people with internet access used online banking, compared to 27% a year earlier. Of those using internet banking, around two-thirds were logging on at least once a week according to the latest survey compared to 55% a year earlier. IBOA - THE FINANCE UNION

SHORTCUTS

2009 june

More trust in banks in UK Public trust in banks remains strong in Britain despite the global financial crisis.

A recent survey found that most people still trust them more than they do organisations such as Britain’s National Health Service or the BBC. In fact, the overall level of confidence among the British public in banks, building societies and insurers has risen since last year, after increased government support for the sector, according to the Financial Services Research Forum, based in Nottingham University. The Forum team asked over 1,400 consumers to rate various institutions out of 100. On average, banks scored just under 74, building societies scored 75, and credit card companies scored 71.5.

Irish Banking Federation Chief Executive, Pat Farrell with Anne-Marie O’Connor of the Money Advice and Budgeting Service (MABS) and the Republic’s Minister for Social and Family Affairs, Mary Hanafin (Photo: Maxwell Photography)

’Till debt do us part…

SPECIAL SAVINGS

Irish financial institutions agree new code The new IBF/MABS protocol to help customers to is set to become fully operational on September 28, manage their debts 2009. Twelve of the major financial institutions in the Republic are to sign up to new guidelines to help personal customers to manage their debt. Over two years in the making, the agreement has been developed jointly by the Irish Banking Federation (IBF) and the State-supported Money Advice and Budgeting Service (MABS). MABS provides services and advice for people in debt or in danger of going into debt. The IBF says the protocol will enable IBF members and MABS money advisers to work together effectively to help personal customers to “address and manage debt problems and, wherever possible, to formulate a mutually acceptable, affordable and sustainable repayment plan.” IBF Chief Executive, Pat Farrell, says that the new guidelines are intended to give priority to seeking “workable solutions” over legal proceedings. IBOA - THE FINANCE UNION

So far, the following IBF members have agreed to subscribe to it: • • • • • • • • • • • •

ACC Bank, AIB Bank, Anglo Irish Bank, Bank of Ireland, Bank of Scotland (Ireland), EBS Building Society, KBC Bank Ireland, National Irish Bank, Permanent tsb, Postbank Ireland, MBNA Europe Bank, Ulster Bank.

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COVERSTORY

june 2009

Thom Yorke, Radiohead

UK rock stars get organised

There’s power in a union The stereotypical image of the rock star is of a highly individualistic – often self-absorbed and narcissistic – egomaniac living and working in a bubble which is far removed from the daily grind experienced by the rest of us. So the notion that rock musicians should be developing a sense of solidarity and getting together to create their own trade union is particularly intriguing.

meeting in London recently – marks a watershed in the music industry. For the first time, pop and rock artists are developing a collective voice to campaign for effective laws and regulations, and for transparent and equitable business practices. In particular, the FAC aims to fight to ensure that interests of artists and fans – without whom the music industry would not exist – are not compromised by any under the table deals between multinational corporations. “The digital revolution has swept away the old music business of the 1960s, and changed forever the relation-

member of the FAC’s board. “For companies who made their living sitting between the two, these are increasingly hard times, but for music makers and music fans this should be a fantastic opportunity. “YouTube’s row with the Performing Rights Society is the most recent example of just how fast the music industry is changing,” he said. “There has never been a greater need for the collective voice of featured artists – whose music generates 95% of revenue in the industry – to be properly heard. “As this revolution gathers pace featured artists must seize the initiative.

Kate Nash

Annie Lennox

KT Tunstall

IBOA - THE FINANCE UNION

COVERSTORY

The Kaiser Chiefs (Photo: Pearl Marjorie draps)

2009 june

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We are looking to forge a new deal, built on fairness, with our fans, the music industry and governments,” added Rowntree. “To achieve this, we must own our future, take real control of our rights and genuinely work together. “Acting alone, artists’ voices will not be heard. Acting together, we can be a powerful force. “Our rights are our power. By making ourselves heard and arguing for what’s fair, we can help reshape the industry for the future so that it serves the interests of those who want to make new music as well as those who want to hear new music,” he declared. Along with Rowntree, the FAC’s first

board of directors includes Soul II Soul’s Jazzie B, Billy Bragg, Radiohead’s Ed O’Brien, Kate Nash, Mark Kelly of Marillion and Master Shortie. Further directors are to be appointed in due course. Among the many other artists who are backing the FAC are: David Gilmour (Pink Floyd), Gang of Four, David Gray, Fran Healy (Travis), Jools Holland, Chrissie Hynde, Iron Maiden, Howard Jones, Mick Jones, Tom Jones, Kaiser Chiefs, Klaxons, Annie Lennox, Nick Mason (Pink Floyd), Ross Millard (Futureheads), Radiohead, Hal Ritson (Young Punks), KT Tunstall, the Verve and Robbie Williams.

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Jazzie B IBOA - THE FINANCE UNION

Richard Ashcroft of the Verve

NEWS

Walter Merricks, Chief Ombudsman

Rise in number Financial regulator of complaints against UK gets tough in UK financial Record fines of £27.3m – institutions The UK’s Financial Ombudsman Service (FOS) – the independent organisation that settles disputes between consumers and financial companies – handled 789,877 consumer enquiries and a record 127,471 new complaints in the 2008/09 financial year. The FOS annual review published last month also revealed that the service resolved 113,949 disputes – a 14% annual increase – with compensation for consumers in 57% of cases. The number of complaints about mortgages, credit cards and consumer credit rose by 34% and insurance disputes increased by 84% – while complaints about mortgage endowments fell by more than half. While half of the total number of disputes handled by the FOS related to six of the UK's largest financial services groups – broadly in proportion to the amount of business they carry out with consumers – the annual report points out that over 95% of businesses covered by the FOS had no complaint referred to the service during the year.

and even higher likely in future 2009 were for activity that took place before The number of penalities imposed by the the financial crisis really hit home. UK’s Financial Services Authority is likely “Any enforcement activity against to reach record levels this year as the financial institutions or their directors who regulator aims to tighten up its scrutiny of failed as the credit crunch took the ground financial institutions. from under them will not feed through So far in 2009 the total value of fines until next year or even the year after that.” handed down by the FSA is £8.1m – The increase in the compared to £3.8m for the level of penalties follows a same period last year. decision by the FSA to A recent report by the adopt a tougher approach. London-based law firm, FSA Chief Executive, Hector Reynolds Porter ChamberSants, noted recently: “There lain, further highlights the is a view that people are change in approach by the not frightened of the FSA. regulator by noting that the I can assure you that this total value of fines imposed is a view I am determined by the FSA in the twelve to correct. People should months to March this year be very frightened of the had risen to a record £27.3m FSA.” – an increase of 514% on A spokesperson for the previous twelve-month the regulator added: “The period. increase in the levels of fines Jonathan Davies, a and the number of pro partner in the law firm, observed that “most of the Financial Services Authority secutions are designed to fines handed down in 2008- Chief Executive, Hector Sants act as a credible deterrent.” IBOA - THE FINANCE UNION

NEWS

2009 june

Irish regulator under fire from own consumer advisory panel The Irish Financial Regulator’s response to the banking collapse has been deficient, according to a report from the Regulator’s own Consultative Consumer Panel. The Panel questions why the Financial Regulator did not move to dampen down the housing bubble at an earlier stage by requiring financial institutions to set aside more capital for riskier products. “Most consumers have lost substantial sums of money because of the inadequate functioning of the present financial regulatory structures. The response of the Financial Regulator has been deficient to date,” says the report. The Panel, which is appointed by the Republic’s Minister for Finance, to monitor the performance of the Financial Regulator from a consumer viewpoint, said that there is a need to address what gets regulated, how it gets regulated and when it gets regulated. The report suggested that any financial products being proposed should be assessed and given approval before being sold to consumers, in the same way as pharmaceutical products.

The Financial Regulator’s office in Dublin (Photo: Sasko Lazarov, Photocall-Ireland!) The panel said changes in the system of regulation were needed at national and European level, but said the change should be about the willingness of regulators to act, as well as changes in formal structures. It said the regulator should be willing to tackle large players in the market as vigorously as it dealt with smaller players. The panel is also seeking an explanation as to why executives on regulatory agencies should be board

members of financial institutions, and what impact this had on the performance of watchdog bodies. The report welcomed the Government’s recent commitment to reform the system, but expressed concern about where the consumer would fit into the new framework. It called for financial institutions to have a consumer representative on their board, or a consumer panel reporting to the board.

UK pensions consultants back call for worker directors in major banks Worker representatives should sit on the boards of major banks to “act as a counterweight to entrenched interests,” according to the UK’s leading independent research and advisory consultancy, PIRC, which advises a number of pension funds responsible for assets worth £1.5 trillion. Worker representatives should be included on the boards of all large companies as part of a comprehesive overhaul of the way big companies are governed in the wake of the economic meltdown and near-collapse of the world banking system. Noting that German firms have a dual board structure with a supervisory arm consisting of a range of community and trade union interests and an executive board comprised of senior management, Alan MacDougall of PIRC, said: “I think something like the German model would improve corporate governance, as well as help to ensure that reckless policies – particularly in the banking industry – are challenged at an early juncture.” IBOA - THE FINANCE UNION

PIRC's suggestions are outlined in a detailed submission to the Financial Services Secretary to the Treasury, Lord Myners – which also proposes that voluntary codes of governance be replaced by compulsory regulations that would be enforced by the Financial Services Authority. PIRC also wants shareholders to be allowed to vote on audit reports at annual

meetings – with auditors forced to resign if their reports were rejected. “There are serious structural flaws in the model of capitalism that we have grown used to in the UK,” said MacDougall “and these require urgent attention. The steady inflation-busting growth in executive pay whilst equity markets have see-sawed over the past ten years destroys the myth that we either have remuneration under control, or have linked it to performance.” The PIRC report also attacks the boards of Britain’s banks for approving business strategies and products that resulted in extreme financial damage. In future there must be greater scrutiny of the independence and competence of non-executives and greater accountability to shareholders through annual elections of all directors at large listed companies. PIRC adds that “multiple directorships, particularly for those on the boards of major financial institutions, must be vigorously challenged.”

INTERNATIONALNEWS

june 2009

What a waste! Thain’s $1,400 paper basket Just when we thought no-one could top former RBS Chief Executive, Sir Fred Goodwin, for sheer vanity, arrogance and wasteful extravagance, along comes former Merrill Lynch boss, John Thain, who is reported to have spent over $1.2m on refurbishing his office. With Merrill on the brink of possible collapse, Bank of America agreed to buy it last September. Thain was sacked in January.

Encore…

GIVE US A BREAK IBOA’s Breakaway programme – offering short holiday breaks at leading hotels in Ireland at special discounts to IBOA members – has been extended with the addition of ten more hotels. For a full listing of all 40 hotels participating in the scheme, log on to the IBOA website at www.iboa.ie/services/ discount/hotelbreaks.html

Merrill Lynch Chief Executive, John Thain (left) greets his new boss, Kenneth Lewis of Bank of America, after the US Government backed BOA to rescue the former Wall Street giant from possible collapse by acquiring it. John Thain’s taste for the finer things in life meant that no expense was spared to create the perfect working environment in his New York office. Following his sacking by the company’s new owners, it was revealed that “superThain” – as he was known because of his resemblance to Superman’s alter ego Clark Kent – had spent $1.22m of Merrill’s money renovating his office a year ago. Included in the sumptuous decor were a $87,784 rug, a $35,115 commode and a pair of curtains costing $28,091. Even the waste paper bin cost $1,405. Although in previous years such extravagance would have passed largely unremarked, in 2008 the writing was clearly on the wall for the troubled Wall Street giant but “superThain” – minus the X-ray vision obviously – behaved as if he was in utter denial. Merrill’s final catastrophic quarter as an independent entity resulted in a staggering $15.3bn deficit as a result of its continuing exposure to toxic derivatives and bad mortgages.

Lifestyles of the rich and shameless

Bank of America became so concerned about these figures that it might have withdrawn from the acquisition deal if a $20bn aid package had not been forthcoming from the US Treasury, prompted by fears of another Wall Street bankruptcy in the wake of Bear Stearns and Lehmann Brothers. Despite the colossal deficit, Thain approached the Merrill board for a $10m bonus for selling the business. However, when his counterparts at other financial institutions like Goldman Sachs and Citigroup announced that they would forgo personal payouts, Thain backed down. Probably the final straw for his new owners was the discovery that Thain was planning to lead a Merrill delegation to the recent World Economic Forum in Davos. His proposal to take over a hotel and offer lavish receptions for the press and banquets for other opinion leaders were in stark contrast to the Bank of America’s own plans for a single cocktail reception. His sacking in January was brief and to the point – during a 15-minute meeting with BOA chief, Kenneth Lewis. The onetime Goldman Sachs executive and former Chief Executive of the New York Stock Exchange is apparently having trouble finding a new employer. According to the Wall Street Journal, a friend described him as “radioactive” – an approporiate description in view of the highly toxic financial products which laid Merrill low. IBOA - THE FINANCE UNION

NEWS

2009 june

British bosses target working mums for sack The number of pregnant women and new mothers losing their jobs in Britain has grown at an “alarming” rate since the onset of the recession as employers select them for redundancy in preference to colleagues without children, according to an alliance of campaign and support groups. The Alliance Against Pregnancy Discrimination in the Workplace has noted that there has been a sharp rise in the number of women calling helplines or seeking legal advice because their jobs have been terminated during maternity leave or pregnancy. “It appears that some employers are using the recession as an excuse to break the law on discrimination,” says the alliance. About 30,000 women are estimated to lose their jobs each year in Britain as a result of pregnancy, according to the Equality and Human Rights Commission. However, the economic downturn is expected to result in a significant increase in that number.

Briefly…

IBOA MEMBERS’ BOAT FISHING TOURNAMENT

Cleggan Co. Galway Saturday September 12, 2009

Species Competition* Weigh-in at Oliver’s Bar Cleggan Prize-Giving Dinner: Prizes for Overall Winner, Runner-Up, Best Fish and more

Tackle Hire Available, If Required Cost per person sharing for 2 nights B+B, fishing and dinner staying at: Sharamore House ¤170 www.sharamore.com Foyle’s Hotel ¤195 www.foyleshotel.com To book a place, please contact John or Sue Brittain at Bluewater Fishing Credit card and IBOA number required at time of booking. E-mail bluewater@eircom.net Phone: 095 21073

CHECK OUT OUR SMALLS IBOA members’ small ads – including holiday apartments to rent or buy – are online at on the IBOA website at www.iboa.ie/services/smallads.html IBOA members can advertise on the site for free by using the ‘Contact Us’ form at www.iboa.ie/contact/ IBOA - THE FINANCE UNION

* The competition will be a species competition fished over one day and each competitor will bring to the scales the heaviest fish of each species that he or she catches. In the event of tied number of species the winner will be decided by the total weight of his/her fish. The weigh-in will take place at Oliver’s Bar and will be supervised by the Western Regional Fisheries Board.

For all details regarding rules, etc, please contact John Brittain by email at bluewater@eircom.net or phone 095-21073 or 086-2779622.

Taking office at one of the most difficult periods in the history of IBOA, our new President, Margaret Browne, is only the second woman in the Union’s history to hold the office – the first being Susan Bustard in 20032005.

Margaret took up office at the Union’s recent Biennial Delegate Conference with the unanimous endorsement of the delegates. Margaret is uniquely qualified for the post – having served two terms on the Executive Committee representing staff in two different banks – the first from 19741992 as an employee of AIB and the second from 2007 onwards as an employee of Bank of Ireland. A native of Tipperary, Margaret began her career in banking at the Provincial Bank in Waterford in 1969. From 1970 to 1974 worked in AIB in Finglas where she served as the IBOA Representative. In 1974, she transferred into Branch Implementation, where she was again the IBOA Representative for the next fifteen years. In 1974, she was also elected to the Executive Committee of the Union – serving continuously until 1992. For ten of those years, she also served as an honorary officer on the Executive Committee as Women’s Representative. A veteran of three major industrial disputes – the strikes of 1970, 1976 and 1992, Margaret also served as President of the Irish Conference of Professional and Service Associations (ICPSA) – to which IBOA is also affiliated. In 1992 Margaret took a break from mainstream banking. After brief part-time roles in both ICS Building Society and First Active, she was employed by Bank of Ireland in 1998 initially on a temporary basis and subsequently as a permanent employee. Margaret has also been very active in the Irish Bankers’ Club as a committee member for many years and is currently its Vice Chair. “IBOA has been a huge part of my life for many years,” Margaret told Spectrum. “I have been lucky to have been able to engage so actively in the affairs of the Union because of the patience of my husband, Dan, and my son, David, who have shown remarkable understanding and have recognised the important role the Union plays – and the necessity for volunteer activists to sustain it. IBOA - THE FINANCE UNION

IBOA President, Margaret Browne

Madame President “IBOA has never been more necessary for staff in the financial services sector than it is now. The crisis in our industry is of unprecedented proportions. Some people have asked me if I am intimidate or overwhelmed by the sheer scale of the crisis. “I am reminded of the old question about another seemingly impossible task: ‘how do you eat an elephant?’

“The answer, of course, is: “One piece at a time!” “That’s how we will face all of these challenges. We will work our way through them with patience and determination: we won’t be overwhelmed. We will strive to protect our members’ jobs and to achieve the best possible terms and conditions for all members in the circumstances.”

ULSTERBANK

june 2009

Members back new terms for restructure IBOA members in Ulster Bank and First Active have backed the final terms for the restructuring of the Group – recommended by the mediator along with other terms secured by the Union – by a substantial majority in a recent ballot.

The final package secured improvements in the severance terms originally offered by the Bank as well as the inclusion of an early retirement option for limited numbers of staff. The agreement also copperfastened the voluntary nature of the severance and early retirement arrangements – as well as specifying the framework for any redeployments or transfers of continuing staff – along with appropriate appeals procedures. The redundancy and early retirement schemes are now closed to applications. The Bank is processing applications in line with the mediator’s recommendation.

Implementation

Following the conclusion of the One Bank negotiations, Ulster Bank has announced several detailed restructuring plans in areas including Wealth, Bancassurance, Risk and HR. The Bank has committed to engage with IBOA in all or any such announcements in the future. IBOA has also challenged the Bank in some parts of the business where members have been told that they will have to enter into a selection process for their existing jobs in variance to the agreement. In the meantime, members in any area where restructuring announcements arise should contact IBOA for advice if required. IBOA will continue to issue relevant updates to all affected areas where the Bank has identified plans to restructure.

Business as usual IBOA continues to engage with senior management on the range of ‘business as usual’ issues affecting members in Ulster Bank. Members should log on to the Ulster Bank section of the IBOA website where updates, circulars and briefing documents are posted on a regular basis – www.iboa.ie/ulster-bank/

The IBOA’s Ulster Bank Executive Committee: (from left) front: Jaynette Stirling, Kerry Christie, Catherine Maher; back: Tommy Kennedy, Fergus Reynolds and John Burns.

Information meetings

Members of IBOA’s Ulster Bank Executive Committee – supported by the Union’s Senior Industrial Relations Officer, Steve Tweed, and General Secretary, Larry Broderick, have now concluded a followup series of meetings with IBOA members. Over thirty local meetings have been held since the Bank’s restructure plans were announced. Generally well attended, the meetings offered members throughout the Ulster Bank network an opportunity to raise issues and concerns.

The full text of the recommendation – as well as a commentary and other recent IBOA communications – is available online at www.iboa.ie/ulster-bank/

Overtime must be paid The recurring issue of unpaid overtime in Ulster Bank has been consistently raised with management by IBOA. In Retail, senior management has made a commitment that, where overtime is authorised, it will be paid in line with existing agreements. Following reports from members, IBOA has highlighted to management a number of branches with problems of unpaid overtime. In response the Bank has made the due payments. Any members in a branch where overtime is being worked but not paid should ask their local IBOA Rep to contact the Union to take the matter forward. In the meantime the message is simple: members should not work overtime unless it has been authorised for payment.

Pay issues referred to mediator In its pursuit of the outstanding issue of pay, the Union has urged senior management to address the ongoing need for an increase for 2009 as well as contractual obligations such as PEF/performance rewards and increments. Basic pay rates in Ulster Bank have traditionally been lower than those of their rivals – with enhanced payments from the profit share scheme providing a necessary top-up. Since RBS has announced that the profit share scheme has been discontinued, the Union is seeking compensatory measures. In view of the significant differences between the positions taken by the Union and the Bank, it has been agreed that these matters should now be referred to a third party mediator for consideration. The Union is advising members not to co-operate in setting PEF targets for 2009-10 until the issue of the payment of PEF awards for 2008-9 has been resolved satisfactorily.

Managing Sickness IBOA has expressed concern to management over the significant rise in complaints from members on sick leave about “harassment” by the Bank – including frequent contact by phone and an increasing tendency to make home visits and send text messages. This is of particular concern to members off work with work-related stress. Any member who is affected by this issue (or any line manager members concerned at being asked to contact staff out sick) should contact IBOA for advice. IBOA - THE FINANCE UNION

DANSKEBANK

2009 june

NIB moves on some aspects of pay IBOA members in National Irish Bank are currently balloting on the outcome of the recent negotiations between the Union and senior management on a number of issues including the implementation of the National Wage Agreement; and the honouring of increments, performance payments and the 4% bonus payment already agreed.

The Bank has agreed to pay incremental wage increases for all eligible employees with effect from April 1, 2009. Senior management has also agreed to pay performance-related pay with a focus on performance pay increases for premanagement staff with effect from April 1, 2009. This issue is to be reviewed before December 31, 2009. As for the National Wage Agreement, the two sides have agreed to await the outcome of the talks currently taking place between the social partners at national level. Once these have concluded, further discussions will take place between IBOA and the senior management. The Sharing Success Organisational Payment – which was agreed between the Bank and IBOA in 2007 and would be worth an extra 4% of salary – cannot be paid at the present time. However, manage-

Danske Group employee and management representatives from around Europe took part in the worker participation seminar in IBOA House last month.

Enhancing worker participation in the Danske Bank Group :

The full text of the agreement – as well as other IBOA communications for members in National Irish Bank – is available at www.iboa.ie/national-irish/ ment has committed to pay it when the Bank returns to profitability. Management has also provided IBOA with a commitment that if any restructuring of the Bank is necessary during 2009 which would involve a reduction in staff numbers, then any job losses will be managed by agreement with IBOA and through a voluntary process. The Union’s National Irish Bank Executive Committee regards this as an important commitment given the current difficulties within both the financial services sector and the wider economy.

Staff in Customer Direct in Northern Bank took part in a quiz night in the Belfast Bankers’ Club last month to raise funds for the Northern Ireland Cancer Fund for Children (NICFC). Organised by the Social Committee in Customer Direct, the quiz was the culmination of a day of activities involving a dress down day in work, a raffle and hot dog sales – which raised over £900. The Bank has pledged to match all funds raised. Pictured above are the winning quiz team of William Watt, Conor McComb, Catherine McGurk and Mark Johnston. IBOA - THE FINANCE UNION

A major seminar on worker participation for Danske employee and management representatives from around Europe was held in IBOA House, Dublin last month.

The seminar also provided a most welcome opportunity to discuss trans national co-operation between the employee representatives and consultation with management of Danske Bank Group. After several acquisitions and mergers, Danske Bank Group now employs staff in twelve different countries. Decisions made at Group level are being applied across national borders to an increasing extent – affecting staff in many countries. Apart from IBOA which represents members in Northern Bank and National Irish Bank, other trade unions participating at the seminar included: – Danske Kreds, representing members in Danske Bank Denmark, – Suora, representing members in Sampo Bank, Finland, – Finansforbundet i Fokus Bank, representing members in Fokus Bank, Norway, and – Finansforbundet i Danske Bank, Sverige, representing members in Danske Bank, Sweden. IBOA’s Danske Bank Group Officer, Robert Thompson, said the event had been useful at a number of levels. “Apart from improving the level of understanding of EU legislation on worker participation,” he said, “the seminar had also enabled representatives to exchange experiences and ideas – which should enhance cohesion among Danske staff in Europe.” The seminar was supported by the EU Commission.

IBOANEWS

ClearCo staff win improved severance terms IBOA members at ClearCo in Belfast have secured substantially improved severance terms – having earlier served notice of industrial action after a 100% strike ballot.

With notice due to expire on Monday, June 15, new terms were brokered with the assistance of an independent third party, Mr. Liam Deane, on Friday June 12. Under the proposals which staff are to be balloted on as we go to press, members will now receive 5.5 weeks’ pay for each year of service (with no upper limit) – together with a co-operation bonus payment equivalent

Election for IBOA District Secretaries The election of IBOA District Secretaries in the major financial institutions is now under way. District Secretaries play a key co-ordinating role – ensuring that IBOA reps are supported in the workplace with advice and information. Nominations were sought last month with the result that a total of 104 District Secretaries were elected unopposed. Contests are set to take place in five locations: • Cork (Bank of Ireland South Region) • Direct Banking (AIB Midlands Region) • Galway (AIB North West Region) • Limerick/Clare (AIB South West Region) • London, North & East Region (Allied Irish Bank GB)

june 2009 to eight weeks’ pay (with no upper limit and a minimum threshold of £1,000). Senior Industrial Relations Officer, Steve Tweed, said that the Union’s claim for improved redundancy terms had been underlined by the determination of the members who had voted unanimously to back industrial action. “Since this is effectively a compulsory redundancy because ClearCo is closing down with the work (clearing cheques for Bank of Ireland and AIB) being transferred to Dublin, our members are entitled to generous settlement terms. “The proposed terms provide for a significant improvement on what was originally on offer from management. So our members decided to suspend the industrial action so that a ballot on the proposals could be held. Management in turn agreed to suspend the migration of work to Dublin while the ballot is being held.”

Carillion staff secure pay rise IBOA members in Carillion have received the first phase of the second module of the Republic’s National Wage Agreement, Towards 2016.

As no nominations were received in a further 12 locations, the Union’s Executive Committee will consider further steps to fill these vacancies. “With the current crisis in the financial services sector, it is essential that we have a fully functional representative structure in place,” said IBOA’s Honorary Secretary, Tommy Kennedy.

Senior Industrial Relations Officer, Gerry Hanna

CRUNCHIN NUMBERS

Special offer for IBOA members – 10% off all general dentistry

64 16

The value of deposits (in billions of euros) in Anglo Irish Bank which is covered by the State guarantee scheme in the Republic.

Senior Industrial Relations Officer, Steve Tweed

Staff received the 3.5% increase with effect from April. A further 2.5% increase is due in October. Management has also given a commitment to hold another pay review in January 2010. IBOA Senior Industrial Relations Officer, Gerry Hanna, said the outcome of negotiations was a very positive development for our members working for Carillion in the Republic of Ireland – “not least because these pay improvements exceed the level of increase for Carillon employees in the UK.”

Visit www.smiles.ie for details or call your nearest clinic at the phone number below: Cork: 021-4274706. Galway: 091-575007. Dublin 1: 1850-323323. Dublin 2: 01-6728938. IBOA - THE FINANCE UNION

IRISHNATIONWIDE

2009 june

Irish Nationwide staff start to get organised with IBOA A substantial number of staff in the Irish Nationwide Building Society have now joined IBOA The Finance Union.

Although the building society has been traditionally non-union under the extremely personalised style of management of former Chief Executive, Michael Fingleton, staff at Irish Nationwide have taken advantage of the new circumstances that have emerged since the introduction of the State guarantee on deposits and loans. With the society’s future rather more uncertain as a result of the level of impaired loans on its books, staff consider that they need the protection of a strong trade union. According to some estimates, up to 80% of Irish Nationwide’s loan book may be tied to commercial loans – which may come under the aegis of the National Asset Management Agency (NAMA). If the day-to-day management of a significant proportion of these impaired loans was to be transferred away from Irish Nationwide, it could have a profound impact on employment levels in the building society. “Our growing membership in Irish Nationwide are entitled to feel concern

IBOA - THE FINANCE UNION

for the future of the society as a whole and their own prospects within it,” said Union General Secretary, Larry Broderick. ‘The society has been left in a rather precarious position as a result of the policies pursued by management in the past – an approach that seems to have been a far cry from the primary purpose of a mutual society

– namely to finance the purchase of homes for ordinary house-buyers,” he noted. “IBOA will strive to ensure that the interests of our members in Irish Nationwide are fully protected – now and into the future,” he added.”The Union has written to the society’s new Chief Executive, Gerry McGinn, seeking an early meeting.”

AIBGROUP

june 2009

AIB staff back interim mediation proposals IBOA members in AIB Group in the Republic of Ireland have voted by a substantial majority to accept the recommendations from Kevin Foley of the Labour Relations Commission (LRC), on a range of issues which had been the subject of protracted negotiations between the Union and the Bank’s senior management. Similar proposals from the Labour Relations Agency (LRA) in Northern Ireland have been endorsed by members in First Trust Bank – while the ballot on proposals from ACAS in Great Britain has yet to be concluded pending the need to clarify the Bank’s interpretation of one element. At the end of those negotiations the Bank’s senior management had proposed: • a two-year pay pause; • a mandatory 5% contribution from staff not already making contributions to the Bank's Defined Benefit Pension Scheme; and • changed pension benefits for all staff. The Bank’s management had also failed to respond positively to Union demands for: • a meaningful commitment to job security; • payment of the National Wage Agreement or contractual obligations; and • resolution of other outstanding issues. IBOA members in all three jurisdictions overwhelmingly rejected the Bank’s proposals and mandated the Union’s AIB Executive Committee to pursue these issues through the various independent conciliation agencies – the LRC, the LRA and ACAS. Following further submissions from both IBOA and AIB management, the Director of Conciliation to the Labour Relations Commission, Kevin Foley, put forward a series of proposals for consideration. Similar proposals were also forthcoming from the Labour Relations Agency and ACAS. The key elements of these proposals were: National Wage Agreement in Republic Both parties should re-convene at conciliation in four weeks to assess the environment in relation to the payments due under the National Wage Agreement, (i.e., 3.5% due from November 1, 2008 and a further 2.5% due from May 1, 2009). Contractual Obligations/Increments AIB should pay all increases due under Career Framework, performance-related pay, Career Path and increments after a

deferral of six months. The parties should engage in a further review of Career Framework to be concluded before the end of December 2009. This was a significant breakthrough in light of the Bank’s prior stance that no contractual obligations, increments, performance-related pay or Career Path payments should be paid for a period of two years. Pensions The issue of pensions should be separated from the pay negotiations. Detailed discussions should take place between the parties on the complex issue of the AIB Pension Scheme with comprehensive information to be made available to the Union to assist the negotiations – and with progress on these negotiations to be evaluated by the independent third party in four weeks’ time. Since the proposals were endorsed by the Union’s members in AIB, engagement has begun on the pensions issue. IBOA has requested detailed information for analysis by the Union’s pensions advisers. Job Security No compulsory redundancies should take place in the Bank during 2009. Any redundancies that may be required in that period should be implemented on a voluntary basis in line with IBOA's agreed negotiating procedures and with the partnership principles between the Bank and IBOA. Outstanding Issues During recent months IBOA had tabled a number of outstanding issues to be

Kevin Foley, Director of Conciliation to the Labour Relations Commission addressed with management including: — Review of profit share — Staffing — Minimum Competency Requirement — Management’s unilateral decision to amend bank holiday payments for parttime staff — Absence Management — Managers’ pay — Review of the culture in AIB — Relationship between IBOA and the new management team — Implementation of existing agreements. According to the mediation proposals both sides should resolve this agenda by December 2009. Although the Union’s AIB Executive Committee considered that the proposals did not fully address all of the issues, it regarded them as an interim arrangement which would represent significant improve ment on the Bank’s position and the best that could be achieved without recourse to industrial action at this juncture. Since the management negotiating team had agreed to recommend the proposals to their superiors, IBOA decided not to proceed with its threat to make an intervention at the Bank’s EGM/AGM last month.

10% discount on any mobile phone or mobile accessory for IBOA members in the Republic of Ireland. IBOA - THE FINANCE UNION

BANKofIRELAND

Staff reject Bank’s stance and refer issues to mediator IBOA members in Bank of Ireland Republic of Ireland, Northern Ireland and Great Britain have overwhelmingly rejected the senior management’s proposals on pay, job security, pensions, recognition, culture and other outstanding issues – which had been the subject of negotiations between the Union and the Bank.

Following the decisive vote in the consultative ballot on the Bank’s final position in the talks, the Union has now referred the issues to the agreed independent mediator, Mr. Mark Connaughton, Senior Counsel. Pay At the conclusion of an extensive round of talks between IBOA and Bank of Ireland senior management, the Bank had indicated that, because of its current financial position, it did not intend to pay increments, performance rewards or cost of living increases even though staff had made a major positive contribution to the business. IBOA had argued that the Bank’s position would effectively amount to a twelvemonth pay freeze for non-managerial staff. Such a move would be a breach of the National Wage Agreement in the Republic of Ireland, unacceptable in Northern Ireland and Great Britain and would fundamentally undermine the contractual arrangements for existing staff. Job Security and Culture While senior management had indicated that it had no plans for any job losses at this time, it had declined to conclude a Job Security Agreement with IBOA which would have guaranteed no compulsory redundancies over a reasonable time-frame. IBOA had argued that the Bank has a responsibility to its staff to conclude a Job Security Agreement. While the Union recognised that some restructuring may have to be negotiated in the Bank, the least our members would expect is a commitment from management that any job reductions would be implemented on a voluntary basis in line with existing agreements. IBOA had also argued strongly that the culture in Bank of Ireland was in need of fundamental change and that the Bank should re-evaluate its approach to pay, performance management and targetsetting in order to create a more acceptable operating environment. Management had stated that there was no need for any change in the culture in the Bank since the current problems had nothing to do with organisational culture. IBOA - THE FINANCE UNION

Senior Counsel, Mark Connaughton – independent mediator Collective Bargaining IBOA had sought recognition for collective bargaining for all groups of members employed in Bank of Ireland – including managerial staff. The Bank had refused to accede to IBOA’s request to seek collective bargaining for managers and other groups not formally recognised for collective bargaining purposes. In putting the senior management’s position for consultative ballot by members, IBOA’s Bank of Ireland Executive Committee

had summarised the Bank’s approach as “opportunistic in using staff’s contractual and other pay entitlements to reduce costs at a time when staff are under severe pressure financially and otherwise.” With the overwhelming majority of members having agreed with the Executive Committee’s assessment, the focus now moves to the independent mediator, Mark Connaughton, who will now consider the submissions made by the two sides and issue settlement proposals.

No award recommended for Staff Stock Issue The agreed independent arbitrator, Mr. Kieran Mulvey has recommended that “it would not be in the overall medium interest of the Bank and its employees to award a staff stock issue in 2009.” While rejecting payment of an award Under the terms of the Cost and Capathis year, Mr. Mulvey’s recommendation bility Agreement – a four-year restructurdid underline the importance of co-operative ing programme originally agreed in 2005, engagement in times of great difficulty and Mr Mulvey is the final arbiter on the gainuncertainty in the financial services sector. sharing element. He urged the parties to “consider how such “We are naturally disappointed that the a positive engagement could be conoutcome of the process has not delivered structed for these uncertain times ahead, more for our members,” said IBOA General where significant change management Secretary, Larry Broderick. issues are inevitable and where staff will “So it is vital, that the Bank responds be required to contribute to ongoing positively to the range of outstanding change in the future.” issues – which have now been referred to the agreed independent mediator, Mark The full text of Mr. Mulvey's recommendation Connaughton, for detailed consideration,” is available online on the IBOA website at he added. www.iboa.ie/bank-of-ireland/

UNIONGUIDE

june 200 2009

EXECU COMM 2009-

The Executive Committee con together with the General Secr are colour-coded according to represent. The seven member make up the Officer Board alon

Elaine Barker Bank of Ireland NORTH-WEST

Dominic Boyd Bank of Ireland BELFAST

Irene Breen Bank of Ireland DUBLIN

Brendan Hannon Bank of Ireland DUBLIN

(Sligo)

(Belfast)

(Dublin Retail)

(Dublin Depts/Bus)

Mairead Kelleher Bank of Ireland SOUTH-WEST

Stephen Kennedy Bank of Ireland SOUTH

Ciaran Mahon Bank of Ireland DUBLIN

Dave Keane Bank of Ireland SOUTH-EAST

Margaret Browne Bank of Ireland DUBLIN

(Tralee)

(Cork)

(Dublin Depts/Bus)

BOI Group Officer

President

Margaret Power Bank of Ireland GREAT BRITAIN

Liam Ross Bank of Ireland OUTSIDE BELFAST

Kerry Christie Ulster Bank BELFAST

John Burns Ulster Bank OUTSIDE BELFAST

Tommy Kennedy Ulster Bank DUBLIN

(London)

(Banbridge)

(Belfast)

UBG Officer

Honorary Secretary

Ger Rowan Bank of Ireland DUBLIN

Tom Ruttledge Bank of Ireland MIDLANDS

Catherine Maher Ulster Bank DUBLIN

Fergus Reynolds Ulster Bank OUTSIDE DUBLIN

Jaynette Stirling Ulster Bank BELFAST

(Dublin Retail)

(Portlaoise)

(Dublin)

(Cavan)

(Belfast)

BANK OF IRELAND GROUP

ULSTER BANK GROUP IBOA - THE FINANCE UNION

UNIONGUIDE

200 june 2009

UTIVE MITTEE -2011

nsists of 38 elected members etary (ex officio). The members the financial institutions they s enclosed by the dotted line ng with the General Secretary.

Robin Bell First Trust Bank BELFAST

Carmel Curran First Trust Bank OUTSIDE BELFAST

Roger James AIB Bank DUBLIN

Tom Lydon AIB Bank SOUTH-WEST

(Belfast)

(Derry)

(Dublin)

(Newcastle West)

Jessie Doherty AIB Bank NORTH-WEST

Claire Walsh AIB Bank MIDLANDS

Sharon McAuley First Trust Bank BELFAST

John Oâ&#x20AC;&#x2122;Gorman AIB Bank DUBLIN

Michael Ryan AIB Bank GREAT BRITAIN

Hon. Finance Officer

AIB Group Officer

(Belfast)

(Dublin)

(London)

Robert Thompson Northern Bank OUTSIDE BELFAST

Pat Carson Northern Bank BELFAST

Moya Cotton Northern Bank OUTSIDE BELFAST

Etain Ryan Lyons AIB Bank DUBLIN

Ursula Tighe AIB Bank SOUTH

Danske Group Officer

(Belfast)

(Dungannon)

(Dublin)

(Cork)

Eileen Gorman Northern Bank BELFAST

Chris Cavanagh National Irish Bank DUBLIN

Fionnuala Duignan National Irish Bank OUTSIDE DUBLIN

Kate Varley AIB Bank DUBLIN

Gerard Watson AIB Bank SOUTH-EAST

(Belfast)

(Dublin)

(Athlone)

(Dublin)

(Waterford)

DANSKE BANK GROUP IBOA - THE FINANCE UNION

AIB BANK GROUP

IBOANEWS

june 2009

Delegates back major shift in banking culture

IBOA General Secretary, Larry Broderick, addresses the Union’s recent Biennial Delegate Conference in Dublin.

An extended report on IBOA’s Biennial Delegate Conference was circulated to members through local IBOA Reps. If you missed it for any reason, you can view it at www.iboa.ie/conference/bdc/2009.html

Delegates to IBOA’s highly successful Biennial Delegate Conference have given their backing to a programme of fundamental changes to restore integrity to the financial services sector. These changes include: • A Commission on Banking to set out the future of Irish banking; • A major reconstitution of the boards of all banks; • A fundamental change in culture of Irish banking; • A review of performance-related pay in all banks; • The introduction of legislation to protect whistleblowers; • Enhancement of stricter standards of corporate governance; • The retention of AIB and Bank of Ireland as independent entities; • IBOA's direct involvement in future change in our industry; • Elimination of tax havens; • Stricter regulation of Credit Ratings Agencies;

THe IrISH BankerS’ CLUB IBOA HOuse, stepHen street upper, DuBlIn 8

• Exclusion of private equity companies from any position of influence within the banking sector; • Detailed clarification of the role and operation of NAMA before IBOA cooperates. Union General Secretary, Larry Broderick also urged the financial institutions to do more to support customers – and especially mortgage holders facing into redundancy – while staff should be given assurances about the protection of pay, jobs and terms and conditions of employment “IBOA demands to be involved in all discussions in relation to National Asset Management Agency and will not be cooperating with any aspect of NAMA until our members’ needs are addressed," said Mr. Broderick. IBOA delegates were determined to push for a fresh start for the industry – based on a new culture which placed the interests of customers and staff ahead of the narrow pursuit of ever-increasing profit.

CLUB Bar openInG HoUrS: Tuesday-Saturday – 4.30pm till late. Sunday-Monday – closed.

Having a Party in 2009?

Forthcoming Club Draw Nights

Call the Bankers’ Club for our special rates for room hire – up to 120 people can be accommodated in comfort in our bright modern bar.

1st Prize Two week holiday for two. 2nd Prize – E300. 3rd Prize – E250. 4th Prize – E200. Draws take place at 9pm. Bar food served 5pm-9pm

DJ and catering facilities available on site. Call 01-4758970 10am-12 noon or after 5pm or leave a voice message any time.

Friday June 26: 1st Prize – Holiday to Algarve

THE PERFECT PARTY VENUE

Friday July 24: 1st Prize – Holiday to Bulgaria

Results of recent Bankers’ Club monthly draws are posted on the IBOA website: www.iboa.ie/services/sportsandsocial/bankersclub.html

IBOA - THE FINANCE UNION

IBOANEWS

200 june 2009

Freeze on Union dues Union subscription rates – which were due to rise this year in line with a previously agreed formula based on annual movements in the consumer price index – are to be frozen at their 2008 level, the Union’s recent Biennial Delegate Conference in Dublin has decided.

In an emergency motion, delegates backed a proposal from the Union’s Executive Committee that the Union should forego the increase due in 2009 and hold the current subscriptions rates which were applied in 2008 until 2010. The Union’s Honorary Finance Officer, Jessie Doherty, said that the Executive Committee was acutely aware of the financial pressure many members were facing while recognising at the same time that the Union’s own finances were still sufficiently robust to be able to absorb the loss of this previously budgeted income.

Don’t forget…

EU unions aim to reduce inequality in banking

DAY OUT AT DUBLIN ZOO IBOA’s annual Family Day at Dublin Zoo takes place on September 5, 2009. On production of your IBOA membership card, Union members will be entitled to free admission at the main gate for two adults and four children or one adult and five children. IBOA - THE FINANCE UNION

Recent EU Directives have extended protection from discrimination for workers to new areas of the employment relationship. At the same time the new measures have been introduced in the EU aimed at making the job market more flexible. A number of European trade unions have been examining the extent to which these new measures are compatible with the EU’s equality laws – particularly in the financial services sector. The NORMA research project included a detailed examination of existing antidiscrimination agreements between employers and unions in the financial services sector. The analysis from each of the participating countries was discussed at a two-day meeting in order to share knowledge and experience with the aim of producing guidelines for trade union and employer negotiators. In particular, the project aimed to offer a practical framework to enable negotiators to identify elements within agreements that could be discriminatory under EU law (often unintentionally so) and eliminate them.

The deliberations of the project team – especially in relation to best practice models – were also assisted by the participation of the relevant human resources staff from Banca Popolare di Milano. In addition to the description of the relevant legal and contractual framework, and the study’s methodology and results, the final report also provides useful recommendations for equality-proofing consultation and negotiation practices within the financial services sector. As well as IBOA the Finance Union, the following unions participated in the project: ETYK (Cyprus), FeS/UGT (Spain), Fiba/ CISL (Italy), Finansforbundet (Denmark), FTUFS (Bulgaria), INE-OTOE (Greece), UNITE (UK), Ver.di (Germany) and the UNI Global Union Federation. The project was co-ordinated by FABI (Italy).

For more information on the project, go to www.normadialogue.com/home.html

SPORTS&SOCIAL

june 200 2009

The Manchester United and City teams warm up before the kick-off at Old Trafford.

At home with Premier League champions The statue of Best, Law and Charlton outside the ground

The Union’s Sports and Social Committee managed to combine both elements of their remit recently in the form of an English Premier League weekend.

IBOA Executive Committee member, Liam Ross, with his son, Conor, at Old Trafford.

While the highlight of the trip was the Manchester derby at Old Trafford between United and City, the scheduling of this game for Sunday to suit the television broadcasters meant that the weekenders could also take in the match between Bolton Wanderers and Sunderland at the Reebok Stadium on the Saturday. Arranged through Celtic Horizon Tours, the itinerary also provided opportunities for shopping at the Trafford Centre in Manchester as well as some sight-seeing – while accommodation for the two nights away was in the four-star Marriott Hotel near Manchester Airport. With every member in the travelling party thoroughly enjoying the weekend experience, further sporting weekends are likely to feature in the Sports and Social Committee’s programme in future.

Glennon’s Car & Home InsuranCe oﬀering a range of discounts exclusive to IBoa members in the republic of Ireland, northern Ireland and Great Britain. Telephone: 00353-1-7075999 email: iboa@glennons.ie Web: iboa.glennons.ie 24

IBOA - THE FINANCE UNION

SPORTS&SOCIAL

2009 june

Arbeit macht frei: Work will set you free – the Nazis’ cynical slogan on the gates of the Dachau concentration camp near Munich.

Don’t be afraid to mention the War Robin Bell reports on a recent IBOA Sports and Social Committee trip from Belfast to Bavaria where the authorities are remarkably frank about the region’s tragic past The early morning alarms started to ring at around 4.00am for those on the red eye flight to Munich on Saturday 2 May. Through bleary eyes, we all checked in and after a mercifully uneventful flight, we landed in Munich before 9.30am. With typical German efficiency the mini buses were all lined up, as soon as we left the terminal building, for the half hour journey to the Munich Park. Our hotel was beside the beer gardens and just a quick tram ride away from downtown Munich. Despite earlier reports that there was little to recommend Munich as a weekend destination, everyone on our trip had nothing but positive comments about the city. Of course, our positive disposition might have been due to the clear blue skies, IBOA - THE FINANCE UNION

lots of sunshine and a few tankards of German beer! As well as the usual city centre attractions, Munich has many places worth a visit in the suburbs. Some of our group visited the Olympic Stadium and the giant BMW factory which were within 20 minutes of our hotel. The concentration camp at Dachau – an hour away by train – made an unforgettable impression on all of those who visited. The German authorities are determined to ensure that nothing is hidden and that the terrible atrocities that were perpetrated there are in no way sanitised. The museum at the camp details how prisoners were slaughtered after enduring appalling living conditions. The short walk through the gas

chambers towards the incinerators was very moving and brought tears to many visitors’ eyes. It was hard to believe that these atrocities took place on European soil within the lifetime of our parents. Our party was re-united for dinner in an excellent Italian restaurant – just a short walk from our hotel. Despite suggestions that Munich was an expensive city, we found prices very reasonable – especially for local transport. The return flight to Belfast on Tuesday morning saw the group rather quieter than we had been on the outward journey – but that could have had a lot to do with the last few hours at the beer garden on Monday night.

SPORTS&SOCIAL

june 2009

IBOA GOLFER of THE YEAR 2009

Men’s and Ladies’ Stableford Competition

Glasson, Athlone, Co. Westmeath Friday 21/Saturday 22 August 2009 Entry Fee: €50 (play only) or €160* *includes two nights’ bed & breakfast and dinner and prize presentation on Saturday night

IBOA Golfer of the Year Name.......................................................................................................... IBOA Membership No./Staff No.:........................................................... Employer: .................................................................................................. Branch/Department:.................................................................................. Address for Correspondence:...................................................................

2009 june

On the to one Three days on the road and it was great. 120 riders covering 1000km for charity on some of the most picturesque biking roads on this island and in the process ¤150,000 was raised for Down Syndrome Ireland and – most importantly – everybody came home safe. Originally the brainchild of former IBOA Honorary Secretary, Michael McCormick – the event has been running for four years now and has so far generated over ¤800,000 for the charity. The figures are huge. 540,000 kilometres of motorcycling to date for Down Syndrome Ireland (DSI) – equivalent to twelve times around the earth. All types of bikes – big, small, new and old – with all ages of riders and pillion passengers took part in the RevUp4DSI challenge over the May Day holiday weekend this year. In order to take part in the event each rider was required to raise at least ¤1,000 and their pillion passengers ¤500 to take part in the event. At all the check points along the route, the riders met young people with Down Syndrome and their families. It meant so much to the riders to see the children climb up and enjoy the bikes. Some lucky young adults even went for spins on motorcycles, too. Arguably the best charity motorcycle run in Ireland, the RevUp4DSI challenge combines the spirit of Down Syndrome, the brotherhood of bikers and fun on the run. Is this cool or what?

If you want to make a donation or find out more about next year’s event, please contact RevUp4DSI on 00-353-(0)1-4266525 or email aidan@downsyndrome.ie

.................................................................................................................... .................................................................................................................... .................................................................................................................... Men’s/Ladies’ Competition (delete as applicable) Handicap:................... (Maximum for men: 20; for ladies: 36) Cheque enclosed: €............... Please return to Anna or Louise, Sports and Social Department, IBOA The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. Closing Date for Receipt of Entries: Monday 20 July 2009.

Michael McCormick (left) stops for a quick bite. IBOA - THE FINANCE UNION

UNIONPEOPLE

road million Motor-bikers raise ¤800,000 for charity in just four years 4 The final day’s ride was up the east coast of Lough Derg to the Portumna

check point. Next was the road up through the Midlands and bog roads to Mullingar. Mullingar to Edgeworthstown – on then to Granard and Oldcastle and back to Dublin is an awesome motorcycle road.

3 Sunday was a spectacular day on bikes. West Clare in the sun is fantastic. Kilkee to Ballyvaughan on the coast road is one of the best biking roads in Ireland. We saw it at its very best. We had a wonderful Garda escort through Limerick with a mile of motorcycles for Down Syndrome Ireland.

Rolling through Limerick

Granard

Edgeworthstown

Oldcastle DUBLIN start/Finish

Mullingar

1 Riders gathered at

Ballyvaughan Portumna

Joe Duffy Motorrad in Finglas, Dublin and headed south through Wicklow, the garden county, visiting the towns of Laragh and Aughrim heading for Wexford’s New Ross. The first check point of 10 over the three-day charity bike ride.

Kilkee Limerick New Ross Mitchelstown

2 After collecting our next route map, we headed for Mitchelstown through breathtaking scenery of the Knockmealdown Mountains and on through

the Golden Vale to Limerick. There, the Strand Hotel was the base for the next two nights. Even though a little knot of Leinster supporters enjoyed their victory over Munster in the bar, the talk was all about the route, the roads and the bikes.

IBOA - THE FINANCE UNION

YOUTH

june 2009

Getting down to business New Union Youth Committee meets for first time

Look us up…

FAMILY DAY AT FOTA IBOA’s annual Family Day at Fota Wildlife Park, Little Island, Cork, takes place on July 4, 2009. On production of your IBOA membership card, Union members will be entitled to free admission at the main gate for two adults and four children or one adult and five children.

The Unusual Suspects?: Members of the Union Youth Committee with Youth Secretary, Gareth Murphy, at the first meeting of the newly elected body.

The newly elected IBOA Youth Committee met last month to consider its campaigns programme in the light of recent developments in the financial services sector.

The Committee was addressed by both the Union’s President, Margaret Browne, and the Honorary Secretary, Tommy Kennedy, who provided updates on recent developments within the major employers in the sector as well as industry-wide issues such as the creation of the Republic’s National Asset Management Agency (NAMA). NAMA could have implications for all of the financial institutions operating in the Republic as well as their subsidiaries in Northern Ireland and Great Britain. The Committee also considered a report from Youth Secretary, Gareth Murphy, on the recently held Youth Focus Group which was organised to secure feedback from non-activist members on a range of topics including IBOA’s structure, workplace presence and communications. In the course of the day-long meeting, Committee members put forward a number of proposals for initiatives to be undertaken in the near future – including a survey of new members and the launch of a Know Your Rights card linked in to sections of the Union’s recently remodelled website. The IBOA Youth survey of newly recruited members aims to find out how and why they joined the Union and to establish how much they know about

IBOA. This information can then be used to improve the recruitment and induction of new members and ensure that the Union’s resources are used as effectively as possible. The survey should also reveal our members’ preferred methods of communication and any training needs. This is one of a number of surveys being conducted by IBOA to ensure that we remain relevant, accountable and efficient in representing employees in the financial services sector while also encouraging greater participation and involvement in the Union. The rights card will provide information on a number of topics members have themselves highlighted. These include contact details for the elected representatives at the different levels, information on legal employment rights, policies and procedures in the various employments and much more. The card will provide links to the IBOA website for detailed information. The Committee aims to distribute the card to ensure that members make the most of the card. It may also encourage nonmembers to join the Union. The Committee has also identified future training needs for its members and has proposed holding a monthly teleconference among committee members to update everyone on developments. For more information on the Youth Committee contact its Secretary at gareth.murphy@iboa.ie IBOA - THE FINANCE UNION

LIFESTYLE

2009 june

DiD you know...

Save

• By turning your thermostat down by one degree, you could reduce your gas bill by 10%? • Aviation generates nearly as much CO2 per year as all the human activities in the whole of Africa? • 40% of all heat lost in the home is through the loft and walls?

Energy Money Earth

• It takes 50% more energy to manufacture 4x4s than most other cars?

Electricity costs are a large component of your household bills. In fact, the use of electricity in the home accounts for approximately one third of the total electricity use in Ireland. But reducing your electricity use is actually very simple. Try the top tips provided here over the next few weeks and months and see how much you can save the environment and save money at the same time. Lighting 4 Switch off lights when you leave a room. 4 Only switch on the lights you need. 4 Use compact fluorescent lamps (CFLs) instead of traditional bulbs – they use only 20% of the energy and last up to 10 times as long. Kitchen 4 Don’t overfill your kettle – only boil as much water as you need. 4 When using your washing machine or dishwasher, wash full loads as it is more efficient than washing two half loads. 4 Washing at lower temperatures is more energy efficient. 4 When buying new kitchen appliances, choose ‘A’ energy rated appliances as they cost less to run.

Heating and hot water 4 You should avoid using your immersion heater to heat water. If possible, use your central heating boiler instead. 4 Fit a lagging jacket on your hot water cylinder to keep water hot for longer. 4 If using electric heaters, fit with thermostatic controls. Home entertainment and electronic equipment 4 Switch appliances off rather than leaving them on standby. This will save up to 20% of your appliance’s energy use. 4 Configure your computer to ‘Energy Saving’ mode. 4 Unplug your mobile phone and digital camera chargers when equipment has been charged.

Be energy aware: think of the planet – think of your pocket! Between 5pm and 7pm demand for electricity rises very sharply. To meet this peak demand, less efficient power stations must be brought into operation. Being as energy efficient as possible, particularly during these hours will help reduce unnecessary CO2 emissions and, therefore, help combat climate change. IBOA - THE FINANCE UNION

• Flushing the toilet with the lid up ejects an aerosol-like plume of germs around the bathroom that float for up to two hours? • 85% of the electricity consumed by TVs and VCRs is used when they are on standby? • The average mattress can house up to 10 million dust mites? • The average dish cloth contains a million times more bacteria than a toilet seat? • 43% of greenhouse gas emissions in New Zealand are caused by flatulent sheep? • Termites produce 20 million tonnes of methane every year – the gas is made in their gut by bacteria breaking down their food? • It takes ten times more energy to make a tonne of textiles than a tonne of grass?

LIFESTYLE

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IBOA - THE FINANCE UNION

LIFESTYLE

2009 june

All sweetness and… salt! Is it really a healthier start to the day? Although sugar levels remained high, some positive changes have been made in reducing salt content. Nevertheless, 100g of Tesco Special Flakes was still found to contain the same amount of salt as 100g of Walker’s Ready Salted crisps.

“Cereal manufacturers need to wake up to the fact that people want to eat healthily and provide them with the means to do so by reducing sugar and salt levels and making labelling clearer. With over a billion pounds spent on cereals every year, it’s time they rose to the occasion.” The Which? researchers Adults and children have a xcluded hot cereals and mueslis hard job finding a healthy start om the study because, deto the day, as cereal companies pite growth in sales in recent continue to add large amounts ears, they remain a small perof sugar to their top brands. entage of the market overall. 31 of the 100 leading UK They looked at the amount Few people would consider a Cadbury’s Flake as a suitable cereals, analysed in the report, f fat, saturates, sugar and salt breakfast. But Morrison’s Choco Crackles cereal has more sugar Going Against the Grain, conhat the 100 cereals contained per serving than the popular chocolate bar, according to Which?. tained more than four teaspoons nd applied the Food Stanof sugar per recommended ards Agency’s traffic light laserving and only one of the 28 p g y m where possible – using red, cereals specifically marketed to children report included confusing labelling, and amber and green symbols to show whether was found not to be high in sugar (but was questionable health and nutrition claims levels of these nutrients are high, medium still high in salt). allowing some companies to promote a or low. Morrison’s Choco Crackles topped the wholesome image for their b d They also considered how sweet mountain with more while failing to draw products are promoted, sugar per serving than a Cadttention to the high h a particular focus on the bury’s Chocolate Flake, folugar or salt content. of marketing techniques lowed closely by Kellogg’s “Breakfast is impor getted at children and any Coco Pops Moons and Stars, ant, and some cereal rition or health claims Frosties and Ricicles which eserve their health de on their behalf. were 37% pure sugar. mage, but most simpl Compared to a similar Many brands which are on’t,” said Sue Davies ich? study of 275 cereals widely considered to be healthy Chief Policy Adviser a ee years ago, the new – like Kellogg’s All Bran, Bran Which?. “It’s especiall ort found that there has Flakes and Special K – did little hocking that almos n some modest improveto bowl over Which?researchers. ll those targeted a nts – especially in reducStarting the day with Special hildren are les salt levels. However, it K, for example, would be almost ealthy. With such n still be a struggle to find the sugar equivalent to waking ealthy covenient choice up to a bowl of Tesco’s Dark Tesco Special Flakes: ttle choice, it’s a dail Nestle Cookie Crisp: struggle for consumer high in sugar the first meal of the day. Chocolate Fudge Cake Ice Cream. saltier than the rest

Breakfast is often said to be the most important meal of the day. But with only 8% of cereals getting a green light for healthy sugar levels, many people are getting a poor start, according to a recent report from the British consumer watchdog, Which?.

IBOA - THE FINANCE UNION

LIFESTYLE

june 2009

Stay Safe Sun IN THE

On holiday, our skin is much more exposed to the elements, with the effects of the sun and the wind taking their toll. Normal skincare products are not enough and the skin needs additional moisturisation and revitalisation. Children in the sun need the highest protection. With summer holidays and plenty of outdoor play, childhood is a time when we’re most exposed to the sun. A child’s developing skin is more vulnerable than an adult’s and will carry the effects of every sunburn for life. Children’s skin needs specific protection. It actually receives about three times the amount of ultra-violet rays as adults and yet their own protective pigmentation system is not yet fully developed. Protecting their delicate skin is vital. There are a number of products designed specifically for children – like Sun Care Cream High Protection For Children from Clarins – which offer very thorough protection. Not only is it highly water resistant, it is specially formulated not to sting the eyes. If you set a good example in protecting your own skin, your children will be more than happy to follow your lead.

Make sure to re-apply sun cream after swimming. Of course, extra protection like sunglasses, a hat and t-shirt are always a good idea.

Be Sun Smart!

You should try to avoid prolonged exposure to direct sunlight when it is at its most intense. Try to stay in the shade between 11am and 4pm – the peak hours of sunshine. Use this period of the day as a chance to have some 'quality time' – take a siesta, do some reading, visit an indoor attraction like an art gallery or museum… use your imagination.

Top It Up!

Always apply and re-apply your sun protection every two hours, and more frequently in strong sun. And not just on the beach… apply first thing in the morning – so that you are protected as soon as you step outside.

Out of the Sun!

If you're home from the beach and out of the sun, your skin no longer needs protection, right? Wrong. Because free radicals generated by exposure to the sun continue their harmful action even after you withdraw from the sun – rather like the way some foods continue to cook after you have taken them out of the oven. The ideal after-sun routine starts with gentle cleansing of the face using your regular cleanser. Then it’s time for the body. A quick shower is not only refreshing after a day at the beach but can also be a key part of your skincare programme if you make sure to use a shower gel with non-drying properties that will moisturise the skin. You can also use a specific product like Clarins After Sun Moisturiser Ultra-Hydrating which provides instant cooling and comfort. It's ideal for all the family.

Skincare After Dark

You can also replenish your skin while it rests at night. Of course, you can continue to apply your usual night-time skincare products if you want during the summer. Or you may prefer some of the aftersun products which have been specially developed for summer use.

Feed Your Skin!

Another important factor in achieving healthy and toned skin is maintaining a well-balanced diet. Summer provides the perfect opportunity to enjoy fresh fruit and vegetables, plenty of water, exercise and rest. Make this summer the starting point for a new healthier lifestyle. Then when you’ve got into positive habits, you can try to maintain them for the rest of the year!

IBOA - THE FINANCE UNION

2009 june

ROCK

SOUNDINGS

AGES

American legends and a Canadian maestro

Even if the weather fails to deliver a long hot summer, the music scene promises a season of golden oldies – with a number of classic performers from across the Atlantic.

The cynics may claim they are only building the pension fund – and for at least one of them there may be some grain of truth in that – but 2009 offers a chance to see some consummate artists who, far from being over the hill, seem to have mellowed with age. In keeping with the sound of summer, the remarkable Brian Wilson makes a return visit to these shores – headlining the Electric Picnic in Stradbally, Co. Laois on September 4-6, after two dates in England at the Guilfest in Guildford on July 11; and at the Sage in Gateshead on July 12. Acclaimed as one of the most original and creative figures in pop music, Brian was the genius behind the Beach Boys – whose distinctive vocal sound the new band not only emulate but enhance. The Beach Boys often found it hard to reproduce Wilson’s studio confections on the road. But Wilson says his current ten-piece band are the best musicians he has ever worked with and Paul McCartney has described the outfit as “the best touring band in the world.”

The Eagles For a truly unforgettable experience of pure musical pleasure, beg, steal or borrow a ticket to see one of the genuine giants of modern music. Another great artist making a welcome return is Leonard Cohen. Rated by many as the gig of 2008, the response to Cohen’s concerts in Dublin’s Royal Hospital and other venues in Britain last year has guaranteed a further visit from Canada’s finest. This time he plays Dublin’s O2 Arena for four nights on July 19-20 and 22-23 before packing the Odyssey in Belfast on July 26.

Cohen also peforms at the Mercedes-Benz World, London on July 11 and the Echo Arena, Liverpool, on July 14. “Sweet Baby” James Taylor kicks off his European tour at the Bournemouth International Centre on June 27, followed by the Cardiff International Arena on June 28 and the MEN Arena, Manchester on June 30. Crossing over to Ireland, Taylor and his band play the Live at the Marquee Festival in Cork on July 2 and the O2 Arena in Dublin on July 3 before returning to Britain to Birming-

ham’s NIA on July 5 and the O2 Arena in London on July 6. Meanwhile the Eagles open at the Odyssey in Belfast on June 30, followed by the RDS in Dublin on July 2. Hampden Park, Glasgow is the venue for the July 4 concert followed by two nights at Birmingham’s NIA on July 7-8. Then it’s up to Manchester’s MEN Arena for two nights on July 11-12. Despite these recessionary times, few promoters have cut ticket prices. So fans who can only afford one or two summer gigs face some tough choices.

Brian Wilson

James Taylor

Leonard Cohen

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SIGHTINGS

june 2009

The talents of some film-makers in predicting future trends suggest that they – rather than some of our recent leaders – should be running the global economy. After all, they could hardly do any worse! Acclaimed filmmaker, Michael Mann, could hardly have picked a more opportune time to unveil his gangster thriller, Public Enemies, which is due for release next month. Although it is over a year since principal filming began – with at least another year in the writing and pre-production planning – Mann’s story of one of the Great Depression’s most charismatic antiheroes is bound to resonate in the current global recession. The remarkable Johnny Depp stars as John Dillinger, whose audacious jail breaks and daring bank raids made him a folk hero to many ordinary Americans who blamed the banks for causing the Depression. Dillinger was also one of the first American gangsters to exploit his own celebrity: an avid cinema-goer himself, he was well aware of the public reaction to the movie newsreels of his activities – despite their usually brutal and fatal consequences. Dillinger’s gang included the Star cast: Johnny Depp (above), Marion Cotillard (below left) and Christian Bale (below right). sociopathic Baby Face Nelson and the equally ruthless Pretty Boy Floyd. Another man keen to use Dillinger’s celebrity for his own purposes was the young J. Edgar Hoover (Billy Crudup) who realised that halting Dillinger’s crime spree could help to advance the claims of his fledgling Bureau of Investigation to become America’s national (federal) police force. He declared Dillinger his first “Public Enemy No. 1” and assigned his top agent, Melvin Purvis (the ubiquitous Christian Bale) – who became known as the “Clark Gable of the FBI.” The film is also graced with a wonderful performance by Oscar winner, Marion Cotillard (La Vie en Rose) as Dillinger’s torch singer girlfriend, Billie Frechette. Based on Bryan Burrough’s nonfiction book, Public Enemies: America’s Greatest Crime Wave and the Birth of the FBI, 1933–34, the film was originally intended as a collaboration between Mann and Leonardo di Caprio who eventually left the proUCI Cinemas (ROI) Storm Cinema Belfast ject to appear in Scorsese’s Shutter Island. According to Burrough the Virtually half-price tickets! Half-price cinema tickets for all UCI film is “not 100% historically accurate. screens in the Republic of Ireland! Adult ticket: just £3! But it’s by far the closest thing to fact Adult ticket: ¤5.90. Child ticket: ¤4.54. For tickets, contact IBOA Hollywood has attempted, and for For tickets, contact that I am both excited and quietly IBOA at 01-4755908. at 02890-382905. relieved.”

BIG SCREENS AT LOW COSTS with IBOA

IBOA - THE FINANCE UNION

READINGS

The alchemists of catastrophe Fool’s Gold by Gillian Flett, published by Little Brown. In the mid 1990s, at a vast hotel complex on a private Florida beach dozens of bank executives from the New York, London and Tokyo offices of JP Morgan gathered for a weekend of networking and brainstorming. Among the drinking, nightclubbing and fist-fights of that wild weekend was a more serious purpose – to assess the possibility of building a business around the new-fangled concepts o credit derivatives. The group at the heart of this projec was an intense team, made up of individuals with a supreme sense of loyalty to each other and to the bank – for years, nothing could break them apart. But when the team finally dispersed, the innovations spread far beyond their original intentions – producing wild distortions in the mortgage market that ultimately culminated in catastrophe on a global scale. Award-winning Financial Times journalist, Gillian Tett, dissects the consequences of this flawed experiment in a style that is engaging, informative and extremely lucid. Although these derivatives seem to be deliberately designed to be as complex and IBOA - THE FINANCE UNION

penetrable as possible – to the oint where only someone with a hD in higher mathematics could nderstand them – Tett manages to utline their basic principles in a ay that can be understood by the on-specialist. She also gives a good picture of e culture in which these young hizz kids were operating – the reed is good mentality” and the centive schemes which offered ry generous rewards for highly p ible behaviour – for which the rest of the world is now paying a very heavy price. Ultimately the derivatives came to be used as a device to disguise liabilities on the balance sheet – and so exaggerate the bottom line and the resulting bonuses for the senior executives. But this illusion could not continue indefinitely. It was inevitable that the day of reckoning would come. Part real-life thriller, part investigation and exposé, this searing narrative takes us deep inside the shadowy world of complex finance – corrupted by unrestrained greed and facilitated by a global regulatory environment so light and flimsy as to be effectively non-existent – in short a perfect storm for a worldwide credit crunch.

During the Wall Street crash in 1929, the word ‘banksters’ was coined to describe those ruthless individuals who had gambled away America’s wealth. In 2009 the term has been resurrected by David Murphy and Martina Devlin as the title of their new book on how the Irish financial services sector was brought to its knees by a small elite driven by profit and greed. Banksters traces the events which triggered the near collapse of the Irish banking system, when a privileged ‘golden circle,’ caught up in a frenzy of greed and opportunism – fuelled by reckless tax breaks engineered by cavalier politicians – gambled with the deposits and pensions of the Irish people – and lost. While bank shares climbed to dizzying heights, profits soared and executives earned enormous bonuses, those who cried ‘stop!’ were shouted down. Banksters poses the allimportant questions: who is to blame – and will all the culprits be held to account?

CHAPTERS BOOKSTORE

Parnell Street Dublin 1

10%

discount for IBOA members Show your IBOA membership card at the pay point

Prize Crossword

june 2009

A prize of ¤50 will be awarded to the first entry drawn from our post bag after the closing date. Across: 1. Cleaning vigorously (9) 6. Fox’s tail (5) 9. Start (5) 10. Competitor (9) 11. Alacrity (10) 12. At liberty (4) 14. Disciple (7) 15. Torvill and Dean (7) 17. Gambling venues (7) 19. Highwayman (7) 20. Letter of Greek alphabet (4) 22. Formal installation of monarch (10) 25. Capital of Scotland (10) 26. Picture (5) 27. Current time (5) 28. Calm and unshaken (9)

Down: 1. Kind of fur (5) 2. Good and honourable (9) 3. Dining lavishly (10) 4. Lean (7) 5. Origin (7) 6. Meat from cattle (4) 7. Below (5) 8. Brought under control and put to use (9) 13. Make most of chance (10) 14. Designer of buildings (9) 16. Remove totally (9) 18. Sometimes worn by native of 25 across (7) 19. Relative (7) 21. Chinese gang (5) 23. Requires (5) 24. Capably (4)

Name ............................................................

Union No............................

Address.........................................................................................................

prevIOus sOlutIOn Across: 1. Stumbling; 6. Block; 8. Orbit; 10. Pessimism; 11. Tremendous; 12. Once; 14. Felines; 15. Eternal; 17. Resists; 19. Noisily; 20. Gale; 22. Demolished; 25. Cassandra; 26. Alone; 27. Perch; 28. Preferred. Down: 1. Scout; 2. Umbrellas; 3. Bitterness; 4. Impedes; 5. Gesture; 6. Brie; 7. Onion; 8. Kimberley; 13. Legitimate; 14. Forage Cap; 16. Neighbour; 18. Speed Up. 19. Neonate; 21. Loser; 23. Dread; 24. Rash. The winning entry was submitted by Aidan Hurley of Carrigaline, Co. Cork.

...................................................................................................................... Employer...................................

Branch/Dept ..........................................

A prize of ¤50 will be given to the sender of the first correct entry drawn from our post bag on July 17, 2009. Entries should be sent to Crossword, Spectrum, IBOA – The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. Photocopies of the grid are acceptable if you prefer not to cut up the magazine.

Great savings and offers for IBOA members in Great Britain and Northern Ireland from Thomas Cook – including a 6% discount on thousands of holidays. Just call 0870-0102904 – quoting reference IBOA – or visit www.staffholidayclub.com

IBOA - THE FINANCE UNION

2009 0 june

sUdoKU CHALLeNGe 5

2 8

7 1

9 6

3 2

4 6

7 4

8 2

1 3

Name .......................................................................................

A prize of ¤30 will be awarded to the sender of the first correct entry drawn from our post bag on July 17, 2009. All entries should be sent to Sudoku, Spectrum, IBOA – The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. A photocopy of the grid will be acceptable – if you would prefer not to cut up the magazine. The winning entry for the Sudoku Challenge in the last issue was submitted by Catherine Jinks of Moira, Craigavon, Co. Armagh. Union No............................................

Address ...................................................................................................................................................... ................................................................................................................................................................... Employer.......................................................

Branch/Dept.................................................................

It really doesn’t take much to work out!

Are you due a refund? If you have been a member of any of the following IBOA local area Sports and Social Club Draws then you may be due a refund. South West Region Ulster Bank, Ennis NSC 98-56-80 A/C No 62978035 Midlands Region AIB Bank, Dundalk NSC 93-24-50 A/C No 13881698 London District AIB Bank, Kilburn NSC 23-83-95 A/C No 42023092 Although the monthly draws for these accounts finished some time ago, some monthly payments have continued to be made. IBOA is refunding all subscriptions back to the date of the last draw. So, if you have been paying into one of these draws, please copy and complete the form below and send it – along with proof of your standing order payment – to Accounts Department, IBOA, IBOA House, Stephen Street Upper, Dublin 8. For more information, contact Jessie Doherty, IBOA Honorary Finance Officer at 00-353-1-4755908 or at jessie.doherty@iboa.ie IBOA Sports and Social Club Draw

application for refund Inspired physicist and inspiring teacher, Albert Einstein was

Address:… … … … … … … … …

also a trade unionist.

……………………………

He was a founder

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member of Local

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(Branch) 552 of the American Federation of Teachers at Princeton University.

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Member of which draw? …………………………… I confirm that I have been paying into the above IBOA Sports and Social Club draw. I am attaching proof of my standing order payments. Signed: ……………………………

SPORTINGLIFE

june 2009

Two Irish teams for South Africa? The city of Sofia – capital of Bulgaria – is a delightful spot in the summer time. It’s high, about 1700 feet up. At the end of every avenue there’s a mountain, still flecked with snow. The 30 degree heat is tempered by an occasional breeze, and the shade of a sycamore is never too far away.

The golden dome of the huge cathedral rises high above a sweep of cupolas below, glistening in the bright sunshine. Cafés abound. Everywhere, there’s an opportunity to relax, and that’s reflected in a refreshingly easy pace to the place. Sometimes football does that for you, takes you somewhere you’d never ever think of going, then makes you glad you joined. I’d been to Sofia twice before, in the depths of winter. It poured throughout the Northern Ireland game I’d gone to cover in 1978. They won 2-0. After, we’d gone for a refreshment or two, and by the time we emerged, in the early hours of the following morning, the rain had turned to snow. There wasn’t that much traffic then, back in the days of the Soviet bloc. A couple of us set out, first footprints on the virgin fall, to check on something we’d seen in the dim daylight – the hourly changing of the guard at the tomb of the unknown soldier. Sure enough, as the clock struck three, soldiers emerged from the gloom to goosestep their way along the silent street and relieve their frozen comrades. The eternal flame burns unaccompanied now, alongside the basilica of St. Sophia, one example of the many ways life has changed in the city in the thirty-odd years since I was there for the first time. My second visit had to do with a football match as well – a Scottish victory that sent the Republic of Ireland to its very first major championship – Euro 88. Now, after my latest trip to the Balkans where, incidentally, I have never seen Bulgaria win, there burns the hope, if not yet the expectation, that there will be an Irish team at the World Cup in South Africa next year. Or maybe, historically, even two! It has been my singular good fortune to have been involved in the coverage of so many great days in Irish sport. The two international football teams have been central to this. I was only a nipper when Northern

FORWARD TO SOUTH AFRICA?: Republic of Ireland soccer manager, Giovanni Trapattoni (Photo: Inpho/Donall Farmer) Ireland won their way to the World Cup in Sweden in 1958. TV rights weren’t an issue then – because so few people had TVs. I followed the team’s progress to the quarter-finals in the Belfast Telegraph, courtesy of the vivid reporting of an extraordinary Glaswegian who’d come to Belfast as a young man, and stayed – Malcolm Brodie, Sports Editor of the Tele, the now octogenarian doyen of northern sports writers.

by George Hamilton In 1982 in Spain, and in 1986 in Mexico, I was there with the Northern Ireland team. Then the Republic took over, and wrote their first chapter with Euro ’88. After that, World Cup appearances in Italy, the United States, and, most recently, Japan and South Korea in 2002 were to follow. 2006 happened without either of the Irelands, but it is not beyond the bounds of possibility that in South Africa next year, for the very first time, the two sets of boys in green could be taking part.

There 53 footballing nations of Europe are divided into nine qualifying groups. The group winners go through automatically to the final stages in South Africa while the best eight of the nine second placers go into a home-and-away qualifying tie to earn the right to join them. Northern Ireland were top of their group at the start of June, the Republic had the chance to end the month in a similar position. Now that summer’s soft blanket of sunshine has settled over football’s affairs, the two Irelands (“Northern” and “Republic of” in football parlance) are below their respective summits, but sit comfortably nonetheless, second among their peers. Northern Ireland had begun badly, but four consecutive wins – a good return at any level – put them back in the mix. They have three more matches to play. They’re away to Poland, whom they beat, dramatically, in Belfast in March. Then, they’re home to Slovakia (who went top of the group this month by beating mighty San Marino). Northern Ireland lost narrowly to the Slovaks in the away leg. IBOA - THE FINANCE UNION

EDGEWISE

2009 june

ULTRA VIOLET &INFRA RED STEPHEN MALONE

Gordon cleans up! The revelation that British Prime Minister, Gordon Brown, claimed £6,577 for cleaning his flat in Central London over 26 months, was condemned by the Tory press as an example of New Labour excess. But since this would amount to a modest weekly contribution of £58 – giving a wage of £116 a week (if Mr. Brown was paying half of the total), then surely the more pertinent question is whether the payment was in breach of Britain’s minimum wage law!

Northern Ireland soccer manager, Nigel Worthington (Photo: INPHO/Presseye/ William Cherry) Finally, they re away to the Czech Republic, now cast as perennial underachievers. They may not be fancied, but Northern Ireland are by no means out of the contest for a place in the Finals. The same applies to the Re public. Giovanni Trapattoni s team selections may have infuri ated what used to be called the purists, but what he is doing is moulding a unit. Glenn Whelan and Keith Andrews? Nobody s poster boys, but they are the heart of the team that he has created. He gives them confidence. They go out, they play, they don t make mistakes. And they have yet to lose a competitive game under let s revert to cliché the wily old Italian coach (the only manager, incidentally, to have won all three of Europe s big club competitions, when there were still three). The Republic must visit Cyprus, then they have Italy and Montenegro at home. If they win in the Med (where it hasn t al ways been that simple), they would have what amounts to a Cup Final against the World Cup holders at Croke Park. That prospect promotes salivation. Northern Ireland, managed by Nigel Worthington, their former left back from Ballymena, have momentum. The Republic of Ireland have Trapattoni, one of the greatest coaches the game has ever seen. South Africa awaits. Sofia has been a waypoint for both in the past. The city may well find itself a footnote in another story of Irish success. Blue summer skies, those green peaks flecked with snowy white, soft green spaces, garden cafés. I m just glad I got the chance to go back.

IBOA - THE FINANCE UNION

The Mother of Invention “Right!,” said Fred

Trousering the Cash

The recently published minutes of Royal Bank of Scotland (RBS) board meetings held on October 10, 11 and 12 to consider the replacement of Chief Executive, Sir Fred Goodwin, reveal that the board never discussed the specific size of the payments to Goodwin. The minutes show that Goodwin was given a choice of taking his full pension at 50 (his current age) or his full pension at 60. Tough choice, eh? But the Bank’s gratitude to the Chief Executive who had brought it to the brink of collapse was truly boundless. When he decided to withdraw a lump sum of £2.7m from his £16.9m pension pot, the Bank very kindly offered to provide it on a tax-free basis – which, at 40%, meant that the lump sum cost the Bank £4.5m. In the wake of the public outcry over Fred the Shred’s pension, he very generously offered to return the lump sum – but only if the pension pot was restored to its original level!

On a recent talk radio show, the host was conducting a panel discussion between a stock– broker, a senior banker and a trade union official. As the discussion drew to a close, the interviewer asked one final question to each of the panellists: “what would you do if you found e50,000 in your trouser pocket in the morning?” The stockbroker told the nation that he would put the money into equities because rapidly falling real estate prices would make property a very risky investment. The senior banker disagreed – pointing out that the stock market was still far too volatile. “Government bonds are the best bet,” he declared. “So now," said the host to the union official, “what would you do if found e50,000 in your pocket in the morning?” “Well,” he said, “I’d be wondering how on earth I came to be wearing someone else’s trousers!”

In these recessionary times, two for the price of one deals should be much prized. Problem No. 1: British MPs are causing public anger by making excessive expenses claims for “second home” allowances. Problem No. 2: The Olympic Village in East London risks becoming a “white elephant” when the 2012 Games are over. Can you see where I’m going with this? You’ve guessed it. Why not turn the Olympic Village (or part of it) into standard accommodation for each MP – paid for by the taxpayer – and scrap the farcical claims for dog food, glittery toilet seats, tennis courts, plasma screens, fridge magnets and, of course, cleaning moats!

CRUNCHIN NUMBERS

The pension (in 1000s of pounds) ex-RBS chief, Fred Goodwin, draws every week!