JULY 2012
Marilyn 50 years after her death , the legend endures See Pages 49-50
Foul-ups, scandals and over-charging – lessons still to be learned!
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McCARTHY’S NEW NICHE
Former Ulster Bank Chief Executive, Cormac McCarthy, has taken a new job working for Paddy Power See Page 4
SPECIAL FOCUS
NEW FACES ON BOI BOARD
Bank of Ireland’s international investors make their presence felt on the Bank’s board. See Page 5
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M&S SET TO LAUNCH BANK
Marks and Spencer prepares to offer a full range of retail banking services to its customers. See Page 6
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• • • • •
Going for gold Crime seldom pays Blowing the whistle Busting jargon Health and safety at work See Pages 16-23
• • • • •
Boss’s bogus bonus bogey Duffy plans smaller AIB Hanna and Barrett return Bank Secretaries Conference Robert Thompson bows out See Pages 24-31
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• RBS IT meltdown paralyses Ulster Bank • Diamond in the Rough • ‘Appy Days • Mis-selling scandal in Republic See Pages 8-15
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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 0044-28-90200130 info@iboa.ie www.iboa.ie www.iboa.org.uk 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.
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• • • • •
Banking on future at BOI Legacy from Dark Ages AIB’s brave new world Ulster says sorry NIB branch closure concerns See Pages 40-47
• Marilyn Monroe – more than an empty icon • Olympic Torch-ure! • Level of personal debt in the Republic rises See Pages 48-53
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Top bankers pass test on fitness and probity
• • • • •
Building the Union Suite deal in Belfast Back to the future Diversity at work Lionel Richie plays country See Pages 32-39
enior executives of Irish banks who were directors when the State guarantee was introduced have been given a clean bill of health by the Republic’s Central Bank. The finding, which covers Bank of Ireland Chief Executive, Richie Boucher, and Irish Life and Permanent Chief, Kevin Murphy, follows a protracted investigation into fitness and probity by the Central Bank. In a statement issued last month, the Central Bank said that as it conducted its review over the last twelve months, many of the long standing directors of the institutions covered by the bank guarantee had resigned. It said it had no reason to suspect the fitness and probity of any directors currently in place who were on boards of
ALL CLEAR: Bank of Ireland Chief Executive, Richie Boucher (left) and Irish Life and Permanent Chief Executive, Kevin Murphy (right) (Photos: Photocall-Ireland).
Irish banks during the night of the guarantee. “In some cases this decision was taken internally within the Central Bank and in others the Central Bank sought an external opinion on the material available to the Central Bank. No further actions will be taken by the Central Bank at this time.”
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Stone Crazy Cinematix: Brave Game Time Prize Quizzes Ultra Violet See Pages 54-63
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The Co-operative Bank is favoured to acquire 632 branches being sold off by Lloyds Banking Group. See Page 7
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CO-OP BIDS FOR LLOYDS ASSETS
Central Bank tells 2008 veterans, Murphy and Boucher, that they can continue
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New ILO chief: Guy Ryder
British trade unionist, Guy Ryder, will become the next Director-General of the International Labour Organisation (ILO) in October when he succeeds Juan Somavia, the former Chilean diplomat who has headed the Genevabased body since 1998. With a global remit to pursue agreed international workplace standards, the ILO is the only United Nations agency that is not run by governments alone. Ryder, who was the first General Secretary of the 175-million strong International Trade Union Confederation, will be the first trade unionist to serve as Director-General since the ILO was founded in 1919.
Super-hero?: Cormac McCarthy at the Paddy Power AGM in May. (Photo: Laura Hutton/Photocall Ireland)
McCarthy finds niche Paddy Power appoints new finance officer U
lster Bank’s former Chief Executive Officer, Cormac McCarthy, has been appointed as chief financial officer of bookmaking firm, Paddy Power. McCarthy had previously been appointed as a nonexecutive director at Paddy Power last August. His appointment to the bookmaking firm mirrors the recent appointment of former HBOS boss, Andy Hornby, as Chief Executive
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Ryder to take ILO’s top job
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of Coral’s – prompting the observation that these rather unsuccessful practitioners of casino capitalism may have at last found their niche. Although McCarthy has now secured gainful employ-
You could NOT make it up!
ment with the bookmakers, the future is far from being a safe bet for the 950 Ulster Bank staff who may lose their jobs by the end of 2013 – on top of a similar number who left the Bank in 2010 – largely as a result of the deterioration in the Bank’s finances during McCarthy’s stewardship. Ulster Bank’s parent, RBS, has set aside around E9bn to cover the losses on its Irish loan book.
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epresentatives of two of the key players in the investment consortium which acquired a E1.1bn stake in Bank of Ireland last summer have now joined the Bank’s board as nonexecutive directors. Wilbur Ross Junior is Chairman of the US private equity firm, Invesco Private Capital, Inc. He also serves as Chairman and CEO of W. L. Ross & Co, which has a lengthy track record in restructuring “financially distressed” companies.
Metro on the move
Prem Watsa
New faces for Bank of Ireland board Prem Watsa is Chairman and CEO of Toronto-based Fairfax Financial Holdings Limited, a publicly traded financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and re-insurance and investment management. Bank of Ireland has also appointed a new Governor (Chairman) to succeed Pat Molloy who retired from the post last month. The new appointee is Archie Kane who recently retired
from Lloyds Banking Group plc, where he served as Group Executive Director – Insurance and Scotland, until May 2011. Before that, he held a number of senior management positions with Lloyds Banking Group and with TSB Bank plc. He is a former member of the Scottish Government’s Financial Services Advisory Board, the UK Takeover Panel and the UK Treasury’s Financial Services Global Competitiveness Group.
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New kid on the British banking block, Metro Bank, plans to expand its business with a further seven branches in South East England – to bring its total workforce to 700. Metro became the first retail challenger to the established banks in 100 years when it opened its first branch in London in 2010, Though still very much a minor player, Metro Bank’s “unique selling point” is extended opening – with service available on weekdays from 8am to 8pm and at the weekends for six hours a day. Metro Bank’s expansion is a further sign of increasing competition in the retail banking sector – with both Marks & Spencer and Tesco planning to extend the range of financial services on offer to their customers.
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Banks must be allowed to fail – says EU B
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anks will be allowed to fail if EU member States adopt new measures proposed by the EU Commission to avoid a repeat of the current banking crisis. Under the Commission’s plans to break the “too big to fail” culture in European banking, if a bank that poses no systemic risk to the national or international economy gets into difficulties, it will simply be allowed to close. However, if its failure is likely to result in a serious threat to the stability of financial markets, the institution will be propped up in part by making unsecured creditors of the bank – such as bondholders and shareholders – take losses rather than requiring the State to bail out the institution.
Retailer to offer current accounts and mortgages via link with HSBC B
ritain’s largest clothing retailer, Marks & Spencer, plans to open 50 bank branches in its stores within two years, with the first branch opening this month at the group's flagship store at London’s Marble Arch. Banking infrastructure will be provided by HSBC.
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M&S to offer full banking services
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By mirroring usual store opening hours, the M&S Bank branches will be open twice as long as traditional high street banks – thus enabling customers “to bank while they shop, seven days a week,” according to a company statement. Customers will also have access to online banking around the clock, as well as to UK-based call centres. Over 3 million customers already use M&S Money, Marks’ existing joint venture with HSBC – providing a range of financial services, including credit cards and insurance. The M&S Bank will take this to a new level by offering current accounts and eventually mortgages, too. According to the company’s Chief Executive, Marc Bolland, the M&S Bank “will be built on M&S values;
putting the customer at the heart of the proposition and delivering the exceptional service that sets us apart from the competition.” M&S Bank expects to employ 500 staff by the end of 2013 – including 400 in customer-facing roles in its branch network and around 100 at its head office in Chester. Staffed by a specialist team, each M&S Bank branch is planned to include private meeting areas as well as self-service banking points and a foreign exchange facility. While challenging the traditional high street banks, the M&S move will also steal a march on Tesco, Britain’s largest supermarket-based financial services provider – which recently opted to put plans for a major expansion in services on hold.
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Sky blue thinker?: Gary Hoffman, NBNK Chief Executive
loyds Banking Group has agreed to press ahead with the sale of 632 branches to the Co-operative Bank after it rejected a rival offer from the private equity company, NBNK. Lloyds has to sell off the 632 branches – known as the Verde group – in order to comply with EU conditions for receiving State aid. Once the sale of the Verde group is completed, the Cooperative Bank will acquire
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a 7% share of the current account market. The Financial Services Authority and the British Treasury are believed to be concerned that the sale of the Verde group should be accompanied by significant funding reserves to stay within regulatory rules. Lloyds has said that the Verde business would have equity capital of £1.5bn to protect customers in the event of a run on the bank.
Though widely expected, the Lloyds Banking decision has come as a major disappointment to the private equity company, NBNK, which has been desperate to gain a foothold in retail banking in Britain. NBNK is fronted by Lord Levene, the former chairman of the insurance underwriters, Lloyd’s of London, and run by the former Chief Executive of Northern Rock, Gary Hoffman.
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You could NOT make it up! Hoffman’s annual salary of just under £1m follows a £1.8m signing-on fee to smooth his transfer from Northern Rock, where he also served as CEO. Reports that he also received £0.5 million from his former employer while on six months’ “gardening leave” led some commentators to question if any information Hoffman might have about the bailed out failed bank could actually be quite so commercially sensitive.
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NBNK’s bid for 632 branches rejected L
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Lloyds nods to Co-op
Probably one of Coventry City Football Club’s best paid supporters is Gary Hoffman, Chief Executive of investment company, which failed in its latest attempt to enter Britain’s retail banking sector by buying 632 branches from Lloyds Banking Group. Hoffman was paid £910,300 last year – even though NBNK lost £23m on two previous bids to secure a foothold on the high street.
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Dark horses: Co-op outbids NBNK for 632 branches earmarked for disposal by Lloyds (Photo: IBOA).
Bustin’ Hoffman
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APPY DAYS
DIAMOND IN THE ROUGH
But British banking’s problems are about the culture – rather than the preceived failings of one individual. See Page 11
The Irish Central Bank’s report that a number of financial institutions have mis-sold payment protection insurance to customers is a further hammer blow. See Page 6
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The growth of mobile banking – based around the internet – has been gathering a seemingly unstoppable momentum in recent years. So will the RBS IT debacle now lead to a more measured approach? See Page 13
GUPTA GUILTY
MIS-SELLING SCANDAL
I learned to walk as a baby and I haven’t had a lesson since. Marilyn Monroe
IBOA NEWS
Retired head of consultants, McKinsey, and ex-Goldman Sachs board member, Rajat K. Gupta has been found guilty of conspiracy and securities fraud for leaking secrets to a hedge fund manager – following a major US Government probe into insider trading.
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A special 10% discount is available for IBOA members – for more information check out www.iboa.ie/my/services/ or www.iboa.org.uk/my/services/ july 2012
ARTS & LEISURE
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RBS IT meltdown paralyses Ulster W
ith around half of Ulster Bank’s 1.8 million customers believed to have been affected by the disruption to the Bank’s IT facilities – hosted by RBS – and with many thousands more customers of other institutions also drawn into the chaos, the impact of this unprecedented event is likely to reverberate on Ulster Bank and throughout Irish banking for many months to come. As British economic commentator, Will Hutton, noted recently: “there is no more serious business failure for a bank, bringing in its wake, as it does, vast economic and social con sequences. It’s like a water company unable to supply water or a power company gas and electricity.”
While much of the media focus on the hardships caused by Ulster Bank’s difficulties has understandably highlighted the impact on individual customers unable to access funds from their personal accounts, there has also been huge damage to businesses unable to verify whether payments due have indeed been received or even, themselves, unable to meet payment deadlines. Indeed so pervasive has been the impact of the crisis that a final tally of the full financial cost may take months. And of course, it remains to be seen what effect the affair will have on the Bank’s ability to retain customers. Perhaps the one saving grace in this regard has been the commitment
of the Bank’s frontline staff – which has received an overwhelmingly positive response from customers who may otherwise have been less than impressed with the overall crisis response from the Bank’s senior management. While the Chief Executive, Jim Brown, eventually came forward to “unreservedly apologise for the disruption that the issue has caused our customers and customers of other banks,” many felt that the timing of the statement – almost a week into the crisis – indicating a lack of understanding or respect for customers. Communications difficulties were evident throughout the critical early days of the crisis. ⁄
july 2012
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The Bank’s self-imposed deadlines for resolving the issue came and went with such frequency that when the Bank was finally in a position to provide more definitive forecasts, the message had lost credibility. While there was some appreciation among the public that accidents in the remote RBS IT systems were outside the control of Ulster Bank, it was clear that, whatever contingency plan Ulster Bank management may have had to handle the fall-out from the original problem, was completely inadequate. There was, in the eyes of many commentators, no ‘plan B.’ By the time Ulster Bank finally got on top of the situation, the reputational horse had long since bolted. The task of rebuilding trust with its customers is likely to take some time. A comprehensive compensation scheme is a start. The Bank has confirmed that no customer, or customers of other banks, will be left permanently out of pocket. It has also contacted credit reference agencies to ensure that customers’ credit ratings will not be adversely affected. Customers are to be compensated for: • Overdraft fees (both for being overdrawn and exceeding a credit limit) • Overdraft interest • Late-payment fees and interest on mortgages, loans and credit cards • Interest wrongly charged on late payments • Cash-advance fees and interest on credit cards Anyone affected by the meltdown – whether Ulster Bank customers or not – have been advised to keep written details of any losses and present this as evidence to the bank. According to UK banking experts, the total compensation costs for the three RBS banks – NatWest, Ulster and Royal Bank of Scotland – could exceed €130m. The implementation of a comprehensive “restitution” plan was one of the key demands of the Republic’s Central Bank whose Director of Consumer Protection, Bernard Sheridan, told the Oireachtas Finance Committee recently that Ulster Bank’s contingency planning was “self-evidently…appalling,” and its approach to communicating with customers “exasperating.” However, the Central Bank, itself did not escape criticism for its response to the Ulster Bank crisis. Aside from being castigated by public representatives for the delay in commenting publicly on the
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IBOA NEWS
Regulators: Staff from the Central Bank (left to right) Head of Payments Paul Molumby, Head of Banking Supervision, Shane O'Neill and Director of Consumer Protection, Bernard Sheridan, pictured on their way into Leinster House to attend the Oireachtas Committee on Finance, Public Expenditure and Reform to discuss the safeguards in place to mitigate technical difficulties in the Irish financial services sector. (Photo: Laura Hutton/Photocall Ireland).
crisis, the regulator was also shown to lack the expertise to assess the fitness of the IT systems in use across Irish banking – relying, instead, on the evaluations provided by the institutions themselves. Public representatives said that, with information technology playing such a crucial role in financial services, the Central Bank should be able to audit its use and effectiveness in all financial institutions. Lessons of the Crisis
“The Ulster Bank crisis should also provide pause for thought in the accelerating rush towards automated banking,” said IBOA’s Larry Broderick. “The frailties of the RBS IT system should at least serve as a warning to other institutions of the need to maintain and overhaul their IT infrastructure. “More thoughtful banking leaders might also reflect on the importance of enabling customers to interact with human beings rather than machines. “The staff of Ulster Bank have played a key role in the crisis: they will also be vital in persuading customers to remain when the dust settles,” he said. It remains to be seen how the need to rebuild the business leads man agement to re-assess its job reduction programme. But the timing could hardly be worse for trying to implement major job cuts across the Branch network.
It also remains to be seen whether managements in other institutions with ambitions for a more automated approach to retail banking will reconsider the scope of their plans in the light of the Ulster Bank crisis. Another lesson to emerge in recent weeks is that, even in the face of such an unprecedented crisis, the quality of the relationships between customers and bank officials improved immeasurably when the high pressure sales approach was dropped and customers’ real needs were addressed. Customers were no longer put under pressure to buy financial “products” they did not need, while staff were no longer put under pressure to sell “products” which they already knew the customer did not want. Real Service to Customers
Real customer service – addressing the customers’ actual needs rather than their presumed needs – has once again become the order of the day. It has become a case of “back to the future,” even though it has taken a near meltdown to achieve it. But for how long? When “normal service” resumes, will the Bank’s blind obsession with sales resume with it? Many members of staff and many customers hope not.
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Exit strategy: Barclays’ recently signed Chief Executive Officer, Bob Diamond (left), with his predecessor, John Varley (behind) and soon-to-depart Chairman, Marcus Agius (right) pictured before Diamond took up his post in January 2011 (Photo: Dylan Martinez).
Diamond in the rough
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s if triggering a major economic crisis which has sent the British economy into a double-dip recession was not enough, British banking has scored more spectacular own goals this week. The computer turmoil at RBS – which also wrought havoc for customers in its NatWest and Ulster Bank subsidiaries – rapidly paled into insignificance (except in Ireland, for obvious reasons) when the shocking revelation broke that a small number of individuals in many leading international banks – with Barclays most prominent – had been trying to manipulate the London Inter Bank Offered Rate (LIBOR) in order to either exaggerate the financial health of their own institution or to line
At a hearing in the US Congress last month into how JP Morgan lost up to $9bn in derivatives trading in the UK before the LIBOR manipulation scandal broke, Congresswoman, Carolyn Maloney, remarked: “It seems to be that every big trading disaster happens in London.”
their own pockets from trading bonuses. Barclays was fined a total of $450m (£290m) by the British Financial Services Authority and its US counterpart, the Commodities Futures Trading Commission – with further sanctions likely against other banks. The regulators found that Barclays traders had routinely manipulated the LIBOR in the hope of increasing their trading profits and their bonuses. At one point, Barclays was lying “on an almost daily basis” in the information it supplied to the market, according to a US investigator. Barclays Chief Executive, Bob Diamond, and Chairman, Marcus Agius, eventually opted to fall – or were they pushed? – on
their swords in the wake of the scandal, Diamond’s initial refusal to waive a pay-off, said to worth between £20m and £30m, only added to public outrage. Agius, meanwhile, was given a reprieve in order to supervise the search for Diamond’s successor. No one seems to have queried how someone, who was deemed ⁄
Interest rate fix inquiry in Canada
An investigation into interest rate manipulation in Canada has alleged that traders working for British banks, RBS and HSBC, as well as for Deutsche Bank, J. P. Morgan, Citibank and Icap brokers conspired to fix rates for Japanese yen trades for personal gain. All dispute the claims.
july 2012
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…but problems go far wider than one man
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ROUGH TRADE
The FSA report on Barclays details various messages sent between the bank’s traders and “submitters” – whose job was to send accurate information on interest rates to the British Banking Association. The submitters are not supposed to be influenced by traders.
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Who could imagine that banking hooligans would bring football into disrepute?
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to be unfit to remain in a key role in a major institution, should nevertheless be permitted to play a pivotal role in the appointment of its next leader. As the LIBOR scandal was breaking, the Financial Services Authority announced that it had reached a settlement with four banks – Barclays, RBS, Lloyds and HSBC – after finding that they had mis-sold products to protect small businesses against a rise in interest rates. The small print on many of these products provided for penalties to be charged if interest rates fell. When this came to pass, these businesses incurred substantial penalties – putting their viability at risk.
This mis-selling scandal came a year after it was revealed that the vast majority of payment protection insurance policies bought in Britain had been mis-sold by financial institutions which subsequently had to set aside £5.5bn (E6.6bn) to compensate customers. The excessive sales culture within the banking sector – which encourages the sale of inappropriate products to illinformed customers – continues to cause untold reputational damage to the financial services sector in these islands. While many hoped that the financial crash in 2008
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would lead to a re-evaluation of this culture, banking bosses in both Britain and Ireland appear to have learned nothing. It seems that there is no ‘Plan B’ – only more of the same destructive policies and practices that led to the crisis in the first place.
In a trenchant commentary on recent developments in the UK, the Governor of the Bank of England, Mervyn King, made an angry attack on British banking culture earlier this month, saying that something had gone very wrong with an industry which he lacerated for resorting to “deceitful” methods to make money.
King’s counsel: Bank of England, Governor, Mervyn King, has launched a broadside at British banking culture.
King highlighted a number of key issues including “shoddy treatment of customers,” and “deceitful manipulation of one of the most important interest rates” as well as excessive remuneration for senior executives who are paid bonuses which are alone worth many times the average salary paid to employees in Britain. “What I hope is that everyone now understands that something went very wrong with the UK banking industry and we need to put it right…We need a real change in the culture of the industry," he said.
So what is the LIBOR?
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LIBOR is an interest rate that is based on what banks are charged when they borrow from other banks. It stands for the London Inter Bank Offered Rate and is overseen by the British Bankers’ Association chaired by Marcus Agius, who also happens to be the chairman of Barclays. While the price of ordinary mortgages is based on Bank of England base rates, the rate borrowers pay on many other products depends on the LIBOR. These include sub-prime mortgages offered to people with poor credit ratings, certain credit cards, personal loans and loans to business. Consumers could have been affected if they had a financial product whose price was linked to LIBOR. The difficulty faced by consumers is proving they have suffered a loss as a result of their bank’s actions. LIBOR changes every day and the regulators said, while Barclays attempted to manipulate it, it did not necessarily succeed.
july 2012
Trader: When I retire and write a book about this business, your name will be written in golden letters. Submitter: I would prefer this not [to] be in any book! Submitter: Hi all, just as an FYI, I will be in noonish on Monday. Trader: Noonish? Who’s going to put my low fixings in? hehehe.
Submitter: [A manager has] asked me to put it lower than it was yesterday …to send the message that we're not in the shit. Submitter to manager: We are therefore being dishonest by definition and are at risk of damaging our reputation in the market and with the regulators.
Trader to manager, complaining about a submitter: [He is putting in] the highest Libor of anybody …He's like, I think this is where it should be. I'm like, dude, you're killing us. Manager to trader: Just tell him to keep it, to put it low.
External trader to a Barclays trader, asking for a lower Libor submission: If it comes in unchanged I'm a dead man. Barclays trader: promises to ‘have a chat.’ External trader to Barclays trader later that day: Dude. I owe you big time! Come over one day after work and I’m opening a bottle of Bollinger.
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Appy days Irish banks include smartphone option in online banking services
with around 20% of sales now made through the internet or contact centres. Customer attitudes to mobile banking have also become more positive due to increased familiarity with smartphone technology, advancements in functionalities and enhanced security features. It is expected that by 2013, more internet browsing will be done on mobile devices than on desktops. With an estimated 740,000 smartphone users in Ireland today – of whom 63% are under 35 years of age – the potential uptake for mobile banking is already significant and likely to become more so.
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The IBOA is exploring the possibility of creating a free app which could provide members with exclusive access to a range of IBOA services. Delegates at the cent Bank District cretaries’ Conference Galway saw a workg demonstration of a pectrum’ app –showg how pages from the last issue of Spectrum might be transformed into multi-media presentations on an i-Pad tablet computer. “New advances in technology are creating exciting possibilities to link up with members,” said the Union’s Communications Manager, Séamas Sheils.
Following the recent launch of the Bank of Ireland app in May, all of the major retail banks in Ireland now provide mobile access to their online banking facilities on both Apple and Android platforms. First into the field in Ireland was Ulster Bank which, since its launch in September 2010, now claims to have around 100,000 active users for its apps which are also available on the Blackberry platform. When the Bank’s IT system is working, the Ulster Bank app provides ‘mini-statements’ for the last six transactions for all accounts managed through its Anytime Internet Banking facility including current accounts, savings accounts, credit cards and loans.
as payments to designated friends and family members – along with credit card and utility bills. The Ulster Bank app also offers weekly balance updates as well as special alerts to warn if the customer exceeds selfimposed balance limits. Both National Irish Bank and Northern Bank launched their apps in September 2011. Connected to their eBanking services, the apps offer users a quick overview of all their accounts as well as their transaction history for up ⁄
It also allows transfers of funds between accounts as well
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The changing needs and preferences of customers, along side technological innovation, has led to increased popularity for mobile banking technology. A report by international IT consultants, Capgemini, in 2011 noted that “direct channels” (online, phone, mobile) are expected to hold the highest share of global banking transactions volume by 2012. A similar European study also shows that around one third of active current account holders regularly bank online while 17% use telephone banking. The same report notes that 80% of all money transfers are currently conducted through online and telephone banking
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rish banks are increasingly embracing the growing potential of smartphone technology to enhance their capacity to offer online services to their high-tech customers. While they have yet to deploy the full power of the device to function as an alternative to credit or debit cards in routine retail settings, the range of services on offer through smartphones is gradually expanding.
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to thirteen months. The apps also enable customers to transfer money and pay bills. According to AIB, 200,000 downloads have taken place since its app was launched in October 2011. The app provides access to the most popular AIB Internet Banking services. Users can check account balances and view the 100 most recent account transactions over six months. It also allows bill payments, transfers to third party accounts and between the customer’s own AIB accounts. The app also allows users to set up, amend or cancel a standing order online and to top up their mobile phone online or register for top-up by text. In just a few months, since its launch in May, the Bank of Ireland app has been downloaded by over 65,000 of the Bank’s 500,000 customers currently registered for online banking with Banking 365. The app allows users to view all account balances and a history of all transactions since the last statement. The user can also pay bills and transfer money to the payees registered on the user’s Banking 365 profile. All of these apps are available free of charge from the Apple App Store or Google Play Store. They all offer facilities to locate your nearest branch or ATM – as well as general contact information for Branches and Head Offices. Most banking apps also include a currency exchange calculator.
The popularity of smartphone apps has undoubtedly assisted the development of e-banking. However, the proliferation of new technology has been seen in some quarters as the basis for a new model of banking which would seek to minimise human interaction. Recent events at Ulster Bank and its parent, RBS, have provided two important and timely lessons,” says IBOA’s Larry Broderick, “firstly that technology is unpredictably fallible; and secondly that frontline staff constitute a bank’s most valuable asset in maintaining its most crucial relationship – with its customers.”
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Payment protection insurance is intended to cover repayments on a loan or other form of credit for a specified amount of time if the policy-holder suffers an accident, illness or redundancy. In some cases, life cover may also be included. Many institutions offer this type of policy when consumers apply for credit in the form of a mortgage, personal loan, motor loan, credit card or store card. Around 340,000 policies are estimated to have been sold by Irish institutions between August 2007 and November 2011.
the payment protection insurance policies were sold to the self-employed, those close to retirement, and those on contract — even though most of them were ineligible to be insured under such policies. Where breaches are found any affected consumers must be “appropriately restituted.” In Britain, where it was found that the vast majority of payment protection insurance policies were mis-sold, British institutions have set aside over £5.5bn (E6.6bn) to compensate customers. Director of Consumer Protection, Bernard Sheridan, said that the reviews by the seven institutions will be overseen by an independent third party. “In advance, we are requiring these firms to submit detailed plans for how they will conduct their review, including contacting affected consumers and making refunds where necessary.
“We will carefully assess their plans and put in place monitoring arrangements to ensure that all firms take a fair and consistent approach to their review. The Central Bank’s main concerns arising from the inspection are: • institutions not gathering sufficient information to enable them to determine whether the product sold was suitable for the consumer; • institutions treating certain sales as ‘execution only’ without complying with the relevant requirements of the 2006 Code; • the timing of the provision of key information to consumers by firms; • failure to bring key information on policies explicitly to the attention of individual consumers; and • poor record-keeping and incomplete files.
july 2012
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he Central Bank in the Republic has asked seven financial institutions to conduct a comprehensive review of all their sales of payment protection insurance (PPI) since August 2007. This could result in extensive repayments of premiums to customers worth millions of euro if the PPI policies are found to have been mis-sold. Two banks, AIB and Bank of Ireland, have already paid back more that E4m to 13,000 customers who were mis-sold insurance. The Central Bank is also considering possible enforcement actions over concerns about the level of compliance by financial institutions with the 2006 Consumer Protection Code. The regulator’s announcement follows its latest round of inspections as part of the on-going investigation of the sale of PPI – which found that
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TIME TO CUT THE JARGON
Financial institutions have been told by the Central Bank to use plain English with consumers and to explain policies and products more clearly. See Page 20
CRIME SELDOM PAYS
Apart altogether from issues of ethics and criminality, robbing banks is generally a poorly paid career, according to a recent study by a team of economists from the Universities of Sussex and Surrey. The report also found that often the loss to the bank from a robbery may be less than the cost of installing some of the security devices designed to deter raiders. This may explain why some institutions have appeared reluctant to invest in security. See Page 18
Standing for long periods at work while pregnant may curb the growth of the developing foetus, according to a new report from researchers in Holland. See Page 22
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Sometimes I think it would be easier to avoid old age, to die young, but then you'd never complete your life, would you? You'd never wholly know you. Marilyn Monroe SPECTRUM
TIME TO SIT
BLOWING THE WHISTLE
The recent publication by the Government in the Republic of the draft outline of the Protected Disclosures in the Public Interest Bill 2012 marks a vital step forward in offering the prospect of protection for workers who come forward to blow the whistle on wrongdoing, according to the Irish Congress of Trade Unions. If enacted, this legislation will be a major advance on the previous patchwork of protections that has left many workers at risk. See Page 19
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CONTINUAL CHANGE BAD FOR BUSINESS
Employees need time to adjust after change, not be thrust again and again into new periods of uncertainty. See Page 23
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Going for Gold
workers said they were unable to wear the safety masks to protect against dust because of unrealistic production targets. The Playfair 2012 campaign – which is supported by the British Trades Union Congress and Labour Behind the Label – says this additional evidence should increase the pressure on the International Olympic Committee (IOC) to improve the conditions for workers in Olympic supply chains in the run up to the next games in Rio de Janeiro in 2016. The campaign recognises that, following engagement with Playfair 2012, the London Organising Committee of the Olympic and Paralympic Games (LOCOG) has gone further than any of its predecessors in requiring suppliers and licencees to comply with international standards and by developing a complaints mechanism so that violations can be reported, investigated and resolved. However, the report notes, “although the majority of production is likely to have already taken place, LOCOG is only
“Olympism seeks to create a way of life based on... respect for universal fundamental ethical principles.” Olympic Charter 2011
Multinational brands and retailers The following brands and retailers were recorded as sourcing from the factories investigated in the Playfair 2012 report: China • Adidas The Philippines • Adidas • Brooks • New Balance • Saucony • The North Face • Under Armour Sri Lanka • Adidas • Ann Taylor • Columbia Sportswear • Lane Bryant • Lululemon Athletica • Next • Nike • Soma Intimates • Speedo • Victoria’s Secret
now in the process of developing training for some workers, and workers across its supply chain have not been made aware in their local languages of their rights or how to use the complaints mechanism. While LOCOG has revealed some of its supply chain locations – mainly in the UK and China – others are unidentified so that it is impossible for local unions to verify its claims that its suppliers are respecting the human rights of workers. “Despite the best intentions of the London organisers and their confidence that factory audits would… expose any abuses, this report shows that there have been goods made in Olympic supply chains where the workers were treated in a way that cannot be described as ethical,” said TUC General Secretary, Brendan Barber. “We hope that the IOC can benefit from the LOCOG experience and ensure that the lessons learned in 2012 lead to better and fairer working conditions for those producing sportswear or merchandise in the run up to Rio 2016,” he added. “There is much, too, in this report for sportswear brands and our high street chains to take on board.”
july 2012
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s the global media prepares to focus on possible drug abuse by athletes as London 2012 draws near, the Olympic movement stands accused of doing too little too late on a much more widespread form of abuse – the abuse of workers involved in the manufacture of many products that will feature prominently during the Games. A new report reveals that workers making London 2012 Olympic sportswear for top brands and high street names including Adidas and Next are being paid poverty wages, forced to work excessive overtime and threatened with instant dismissal if they complain about working conditions. Researchers working for the Playfair 2012 campaign visited ten factories – eight of which were producing Olympic goods – in China, the Philippines and Sri Lanka, and talked to 175 workers about their working conditions. The report, Fair games?: Human rights of workers in Olympic 2012 supplier factories, documents a range of working hours, pay and safety abuses. In China, for example, at an Amerseas Enterprises Factory producing sportswear for the Olympics sponsor, Adidas,
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The Olympic countdown clock in Trafalgar Square, London
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Olympic suppliers bid to cash in on London Games by abusing workers’ rights
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Barrow and Parker: Despite Hollywood’s often romantic portrayal of bank robbers, the reality is far from glamorous and rarely as lucrative for the perpetrators.
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Crime seldom pays – and certainly not very much! British researches study economics of bank robberies The report A found that often
part altogether from issues of ethics and criminality, robbing banks is generally a poorly paid career, according to a recent study by a team of economists from the Universities of Sussex and Surrey. The average proceeds from a bank robbery in the UK were £20,331, with a third of robberies yielding nothing at all. The average takings for each raider involved in a successful raid were around £12,706.60 – or less than six months' pay at the average wage. The results were published in Significance, the magazine of the Royal Statistical Society and the American Statistical Association. Based on data supplied by the British Bankers' Association, the researchers constructed an
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the loss to the bank may be less than the cost of installing some of the security devices designed to deter raiders. This may explain why some institutions have appeared reluctant to invest in security.
july 2012
economic model for a career in bank robbing – balancing the raider’s gains against potential losses. One of these potential losses was the possibility of being arrested and convicted – which, according to the study, was most likely after the fourth raid – with a long prison sentence the typical outcome. In conducting their “costbenefit analysis” of bank raids, the economists also identified factors which might influence the success or failure of bank raids. These factors include the number of raiders involved, the use of firearms, the activation of alarms, the number of bank staff and customers present during the event, and the deployment of bank security measures.
Of these, fast-rising security screens, which are present in only 12% of British banks appeared to be most effective, reducing the probability of a successful raid by one third. However, since the financial losses to banks through raids are reasonably low – compared with the cost of installing additional fast-rising screens – this might explain their low prevalence. Although the authors recognise that bank robberies involve other costs – such as social and psychological ones –– it may be the case that some institutions have adopted a rather simplistic accountant’s approach to the issue which calculates that the protection of staff and customers rates lower than the protection of the bank’s bottom line.
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Blowing the Whistle
he recent publication by the Government in the Republic of the draft outline of the Protected Disclosures in the Public Interest Bill 2012 marks a vital step forward in offering the prospect of protection for workers who come forward to blow the whistle on wrongdoing, according to the Irish Congress of Trade Unions. If enacted, this legislation which means that they will be will be a major advance on the re-instated in the job until the previous patchwork of procase is finally decided. tections that has left many Without this vital protection, workers at risk of falling bea whistleblower would most tween the gaps in protection. likely be at risk of financial ruin The draft outline incorpo– facing the prospect of being rates many of the recommenout of work and waiting for dations previously made by years until the issue was reCongress and is generally in solved through the legal process. line with the international best There can be no doubt that practice. fear of losing their jobs would However, according to the prevent workers back from ICTU, the proposed protection raising concerns. against reprisals by employers To be credible the new falls short of what is required legislation needs to protect and compares unfavourably workers in reality as well as on with international and best paper, says Congress. practice standards. The absence of this crucial If whistle-blowers in the provision is a major omission, UK are threatened with disaccording to Congress, especially missal, for example, they can since the draft legislation has apply for “interim relief” – ⁄
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Effective protection for whistleblowers is a key ingredient in the change in operating culture which is vital for the recovery of Irish banking. If such protection had been in place during the latter years of the ‘Celtic Tiger era’, then IBOA’s concerns about troubling developments in Irish banking might have been taken more seriously by the authorities. A climate of fear has continued to ensure that employees have been unwilling to come forward. This climate ensures that most bank staff believe that if they stick their necks out, there is every likelihood that they would not only be managed out of their current employment but also be effectively blacklisted in terms of future employment in Irish banking. This must change.
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Legislation must be effective
Proper protection is vital
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taken UK law as a blueprint in all other matters. Congress is also keen that the law should protect whistleblowers against long-term and enduring discrimination in the form of blacklisting by future employments. Congress has also argued that there should be no service requirement or qualification period before the protection for whistleblowers kicks in: “workers should not be forced to keep quiet waiting until they are covered by the legislation,” says the ICTU.
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Code of Practice
Congress has also strongly urged Government to develop a Statutory Code of Practice to underpin the operation of the legislation in the workplace. This code should set out model policies and procedures to be put in place – including measures to be taken to protect the confidentiality of whistleblowers, procedures for making internal disclosures and formats for reporting back on investigations. Union Representation
Congress believes that workers should be free to seek help, advice and representation from their union. Like the principle of privilege between lawyers and their clients, the ICTU argues that when whistleblowers discuss their disclosures with their trade unions in order to get support, information or representation, then this should also be considered to be a protected disclosure under the new legislation.
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Vicarious Liability
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To ensure that whistleblowers are also protected from any adverse treatment by their employer’s customers and clients, by contractors or even other employees, Congress is recommending that the new law should also make the employer vicariously liable for any adverse treatment of this kind, along the lines of similar provisions in employment equality legislation.
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No more jargon If in doubt, leave it out – or find a clearer way to say it – says regulator F
inancial institutions have been told by the Irish Central Bank to use plain English when dealing with consumers. They should also make a special effort to explain policies and products to older people or the less educated. many people have difficulties understandIn a review of the implementation of ing common financial terms – such as APR, the new consumer protection code introequity and compound interest – as well as duced at the start of the year, the regulator adding up a bill or understanding a pay slip. found that most institutions are making A joint initiative between the National satisfactory progress in training staff to deal Adult Literacy Agency (NALA) and EBS, with the new rules. However, some areas are in need of MakingCents.ie tries to tackle this problem improvement, according to the Central by providing tools to help users understand Bank – such as the use of plain English more about money and financial matters so to explain financial terms properly so that when they make important financial that consumers have clear and accurate decisions they understand what they are information. signing up to and are comfortable with The institutions have also been told to their choices. take account of the needs of vulnerable Makingcents.ie seeks to explain in consumers, including those with physical plain English common financial products disabilities – such as visual or hearing and the terms and procedures which finanimpairments – as well as those with cial institutions apply. intellectual disabilities. Although the website cannot provide specialised money advice, it aims to help people make informed decisions by equipMakingcents.ie ping them with the right questions to ask The Central Bank’s focus on jargon follows and the key points to look out for. the publication of research showing that
july 2012
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Keep your finger on the pulse…
july 2012
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orkers at the top of the wage scale in the US are more than four times as likely to have paid sick days than workers toiling near the bottom wage scale, according to a recent report by the Economic Policy Institute (EPI). The Economic Snapshot found just 19% of low wage workers have paid sick days in the US, compared with 86% of high-wage workers. These low income workers are the ones who can least afford to lose pay when they are sick. Overall one in four workers have no paid sick days and when they become ill, are forced to go to work sick, or stay home without pay and risk losing their job. The national trade union federation, the AFL-CLO, reports recent surveys show that three-quarters of Americans believe that paid sick leave should be a “basic workers’ right” and that Congress should pass legislation that guarantees paid sick leave for workers. More than 160 countries provide paid sick leave, but not the United States.
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Access to sick leave is effectively pay-related in US W
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Time To Sit down on the job Standing at work is bad for pregnant women
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tanding for long periods at work while pregnant may curb the growth of the developing foetus, new research indicates.
Dutch researchers, who published their findings online recently in the journal, Occupational and Environmental Medicine, assessed the foetal growth rates of 4,680 mums-to-be from early pregnancy onwards between 2002 and 2006. Midway through their pregnancy, the women were questioned about their working conditions and the physical demands of their jobs, including whether these involved lifting, long periods of standing or walking, night shifts and long working hours. 38.5% of the women spent a long time on their feet and 45.5% had to walk for long periods. Heavy lifting was part of the job for just 6%, while around 4% worked night shifts. The results showed that physically demanding work and long working hours were
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not consistently associated with restrictions on overall size or birth weight, or with premature birth. Nor did working up to 34 or 36 weeks of pregnancy have any adverse impact on foetal development. But women who spent long periods on their feet during their pregnancy, in jobs such as sales, childcare, and teaching, had babies whose heads were an average of 1 cm (3%) smaller than average at birth, implying a slower growth rate. Those who worked more than 40 hours a week had smaller babies than those who worked under 25 hours a week. Previous research has also indicated that long working hours may increase the risk of birth defects, premature birth, stillbirth and low birth weight.
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any employees feel it to be true and now research has proved it – businesses really don’t care how constant change affects their staff. Business failure is directly related to senior managers not understanding or caring that change can knock a workforce off its feet, according to researchers from the University of Portsmouth Business School. In their study, Continuous organisational change and burnout, published in the International Journal of Knowledge, Culture and Change Management, Gary Rees and Sally Rumbles found alarming results. “Employees are an organisation’s most valuable asset and collectively have the power to help businesses survive and thrive in bad times as well as in good,” Rees commented. “Managers seem to think they have a licence to change, but our research has shown high-level executives admit only about a third of changes they’ve made are successful and have helped sustain their company through turbulent times.”
“Employers and senior managers need to stop foisting continual change upon their staff in a bid to stay viable as a business,’ he said. “The secret is not to ignore the fact change can threaten the staff who, in turn, can become exhausted, cynical or depressed, which destabilises the organisation.” “The worst thing is that those who are more likely to burnout in the workplace are the most engaged and hardworking staff,” added his colleague, Sally Rumbles. “If a business loses those people, then it risks destabilising the business. Instead of seeing people as the most important asset and what gives a business its competitive advantage, too many senior managers think what is good for business is good for the workers.” “Continual change can feel like bereavement and employees need time to recover and adjust after change, not be thrust again and again into new periods of uncertainty and new initiatives and restructuring. Businesses need to plan change, execute it and then tell staff the turmoil is over.”
july 2012
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Constant change is more likely to result in staff burn out, say researchers
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Employee anxiety is bad for business
The IBOA Safety, Health, Welfare and Security (SHWS) Committee aims to work with members and employers to create healthier, safer working environments for everyone. IBOA has produced guidelines on your rights under health and safety legislation in the Republic and Northern Ireland. These can be accessed on the IBOA websites by following these links: • www.iboa.ie/knowyour rights/yourrightsroi/healthsafety.html for the Republic of Ireland; and • www.iboa.org.uk/knowyour rights/yourrightsni.html for Northern Ireland. If you have any questions or concerns about health, safety or security in your workplace, please contact a member of your local health and safety committee in the first instance. If there is no health and safety committee in your workplace, please contact one of the following members of the Union’s National Committee: Elaine Barker (BOI), Carmel Curran (FTB), Margaret Power (BOI-GB), Stephen Kennedy (BOI), Etain Ryan Lyons (AIB), Jaynette Stirling (UBG-NI), Kate Varley (AIB) and Billy Barrett, Senior Industrial Relations Officer. You can contact all of these by e-mail at safety@iboa.ie or by phone at 00-353-(0)1-4755908 or 00-44-(0)2890-200130.
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It’s your right to work in safety and security!
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DUFFY PLANS SMALLER AIB
AIB has informed its staff that it intends to close a number of its branches as its customers will be able to do more business at post offices in future. See Page 26
HANNA RETAINS NIC-ICTU SEAT
IBOA Senior Industrial Relations Officer, Gerry Hanna, has secured re-election to the Northern Ireland Committee of the Irish Congress of Trade Unions. See Page 27
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HISTORIC BANK SECRETARIES CONFERENCE IN GALWAY
IBOA’s recent Bank District Secretaries’ Conference in Galway had just about everything – with a thoughtful and at times emotional celebration of the Union’s past amid serious contemplation of Irish banking’s future and IBOA’s vital role in influencing it. See Page 28-29
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UNION APPOINTS NEW OFFICIAL Billy Barrett has rejoined the staff of IBOA as Senior Industrial Relations Officer with responsibility for AIB and Ulster Bank. See Page 27
ROBERT CALLS IT A DAY
Robert Thompson has decided to stand down as IBOA’s Danske Group Officer and Executive Committee member as he leaves Northern Bank. See Page 30
10% off all products purchased in the Republic of Ireland or Northern Ireland on presentation of your IBOA membership card in store.
Women who seek to be equal with men lack ambition. Marilyn Monroe
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Boss’s bogus bonus bogey
“While we acknowledge that the current unprecedented difficulties clearly originated in RBS, the handling of the ongoing fallout by Ulster Bank has raised serious concerns for the bank’s own customers as well as others affected by the consequences of the event,” said the IBOA leader. “Apart from the immediate issue of restoring a full and effective banking service, a key task for the Bank will be to reestablish trust with its customers, restore faith with its staff and rebuild confidence with the public at large. “Jim Brown’s decision on his personal finances can be seen in this context. But this gesture should be accompanied by further substantive measures which will be of enduring benefit to all of Ulster Bank’s customers.
"In view of the huge damage to its reputation, Ulster Bank should follow up on its commitment to provide compensation – by setting out an agreed independent mechanism for the lodging, assessing and settling of claims for both its own customers and those of other institutions who have been adversely affected by the crisis. “The Bank also needs to put in place a genuinely effective risk management plan which would not only seek to minimise the risk of any technological failure – but also lay down clear procedures and processes to be followed in the event of such a failure in the future,” he said. “In this case, it is clear that the delays in resolving the IT problems for Ulster Bank were exacerbated by the fact that they were enmeshed in the computer systems of RBS and NatWest Bank. “The independent review, which RBS has committed to conduct into this affair, must give serious consideration to the provision of a stand-alone IT facility for Ulster Bank – and at the very least review the architecture of the RBS system which, whether by historical accident or otherwise, has resulted in a different level of service to Ulster Bank customers compared to others in the RBS Group.
Ulster Bank chief’s bonus gesture is necessary step in bid to rebuild Bank’s reputation – Broderick
Staff key: Ulster Bank should remember the key role played by frontline staff in crisis – IBOA General Secretary, Larry Broderick (Photo: Sasko Lazarov, Photocall-Ireland).
“As a further measure to rebuild confidence, RBS should also give a clear and unambiguous commitment to the future operation of Ulster Bank in Ireland – including the provision of the necessary support to staff to ensure that Ulster can become a fully functioning bank as soon as possible. One of the major lessons that has come out of this catastrophic situation has been the sterling performance of the Bank’s frontline staff in the branches and call centres. “The Union’s belief in the quality and dedication of its members in Ulster Bank has been confirmed by the glowing tributes that have been paid in the media by customers, who, despite their obvious frustration with the responses from the Bank’s senior management, have praised the frontline staff for their unfailing patience and courtesy in such difficult circumstances. “These staff have made a real difference in getting the Bank through this crisis. I hope the Bank will continue to recognise the significance of their role after the dust settles – and will ensure that this role is properly supported within the new operational framework that is being developed in Ulster Bank,” said the IBOA leader.
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he decision by the Chief Executive of Ulster Bank, Jim Brown, to forgo any bonus that might have been awarded for this year has been welcomed by IBOA General Secretary, Larry Broderick, who added that, “even before the current crisis, there was something surreal about providing extra rewards to the boss of a lossmaking business which earlier this year announced plans for a further 950 job losses.”
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Brown off: Ulster Bank Chief Executive, Jim Brown, leaves Dáil Éireann by car, after appearing before the Oireachtas Finance and Public Expenditure Committee to answer questions on the crisis in Ulster Bank arising from the RBS computer failure. (Photo: Sam Boal, Photocall-Ireland).
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Branch closures planned in Republic after AIB links up with An Post A
IB has informed its staff that it intends to close a number of its branches in the Republic as its customers will be able to conduct more transactions at post offices in the future. AIB recently reached an agreement with An Post to co-operate on extending the range of banking services currently available in post offices. New services to be introduced in the coming months are likely to include cheque lodgements and deposit account transactions. Media commentators have speculated that as many as 90 branches – including many in rural areas – could close. AIB currently operates 270 outlets excluding its EBS subsidiary. In a strategy update to staff AIB’s senior management said: “Regrettably this means that the number of branches will reduce as part of the move to lower costs. “But through the use of mobile banks and new branch openings in selected areas, AIB will bring banking services to new locations.”
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Duffy’s circus: AIB Group Chief Executive, David Duffy, at the Bank’s recent AGM (Photo: Laura Hutton, Photocall-Ireland)
Duffy plans for smaller bank Intensive T talks get started between AIB and IBOA
july 2012
he Union’s AIB Executive Committee met AIB Group Chief Executive, David Duffy, earlier this month to discuss the senior management’s strategy for the future of AIB Group and the implications for the staff of the Bank. Mr Duffy outlined his vision for the Bank as follows: • a new Bank model with greater customer focus; • a One Bank structure with a new management team; • a restructure of the Retail network across UK and Republic of Ireland involv-
ing some branch closures; • a return to profitability by 2014; and • engagement with key stake holders including IBOA and staff – with the Chief Executive committing to full consultation and negotiation with the Union in line with the agreed Partnership Principles. While the IBOA team – led by General Secretary, Larry Broderick – welcomed the Chief Executive's commitment to full negotiation with the ⁄
Next Steps
As a result of the meeting, AIB senior management and IBOA have agreed on a number of measures. The Bank has now begun to review all the applications received from staff for voluntary severance and early retirement in line with the Foley agreement. Senior management has also pledged to honour the requirement from the mediator to enable the Bank’s staff to make informed decisions about their future. The Bank has committed to provide timely information to IBOA and staff on the Bank's specific proposals in each area including timelines for their implementation. Intense negotiations have also begun now between IBOA and the Bank on the Chief Executive’s earlier announcement on proposals on pay, pensions and benefits. These are expected to be concluded by September 2012.
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At the rostrum: IBOA Senior Industrial Relations Officer, Gerry Hanna, addresses the recent Biennial Delegate Conference of the Northern Ireland Committee of the Irish Congress of Trade Unions (NIC-ICTU) at the City Hotel in Derry (Photo: Kevin Cooper/Photoline).
Gerry gets back… I
BOA’s Senior Industrial Relations Officer, Gerry Hanna, has secured reelection to the Northern Ireland Committee of the Irish Congress of Trade Unions (NIC-ICTU) for another two-year term.
He was re-elected at the recent NIC-ICTU Biennial Delegate Conference in the City Hotel, Derry. The Conference also backed a comprehensive motion from IBOA on the continuing fall-out from
the banking crisis – highlighting its impact on jobs and services to customers – and pledging support for IBOA’s ongoing efforts to change the culture of banking in both Northern Ireland and the Republic.
…and Billy’s back, too
B
illy Barrett has returned to the staff of IBOA as a Senior Industrial Relations Officer. Billy left the service of the Union in 2008 to become Head of Human Resources for the Superquinn supermarket chain. Billy’s replacement in IBOA was Steve Tweed who left the Union last December to become Director of Industrial Relations at the Irish Medical Organisation. Billy has now assumed particular responsibility for negotiations on behalf of IBOA members in AIB and Ulster Bank.
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Billy Barrett
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Union, they also highlighted the major contribution which has already been made by IBOA members in AIB during the most difficult of circumstances in order to maintain the Bank’s relationships with customers. The IBOA team stressed that the success of the Bank would depend on the following: • agreement on a Fair Deal to Stay for staff who wish to remain in the Bank; • delivery of all aspects of the agreement brokered by the mediator, Kevin Foley, for members who wish to leave the bank voluntarily; • full transparency about the Bank’s plans in each area – including its proposals for the branch network, outsourcing and for all support structures; • full engagement with IBOA on outstanding issues such as pay, pensions and terms and conditions of employment in line with the Partnership Principles.
LIFE & STYLE
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THE FUTURE IS AT STAKE
WE ARE STAKEHOLDERS
Bank District Secretaries Conference
Action packed event Memorable in many ways
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he Union’s Bank District Secretaries Conference in May at the Clayton Hotel in Galway was most memorable. From the opening session of the Conference – which included a celebration of the Union’s past – right through to the breaking news on the second day of major developments in AIB Group and Bank of Ireland – following hard on the heels of earlier substantive announcements in Ulster Bank
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and Danske Bank, the Conference could truly be described as historic. The opening session saw the official launch of Handling Change: A History of the IBOA, written by Dr. Paul Rouse and Mark Duncan, who were both in attendance along with publisher, Con Collins, as well as a number of former Presidents and former General Secretary, Ciaran Ryan. ⁄
ON SCREEN: Union General Secretary, Larry Broderick, is interviewed for RTE television news during a break in the Conference (Photo: Tadhg Keady).
SPECSAPPEAL FOR IBOA MEMBERS
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Galway 2012
Up close and personal: Pat Brady, Director of Workplace Solutions, addressed delegates on how trade unions can address the growth in the number of individual – as opposed to collective issues – including personal cases involving employee grievances and threats of disciplinary action by employers (Photo: Tadhg Keady).
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E30 off glasses from the E149 range or above in the Irish Republic
£20 off glasses from the £99 range or above in Great Britain and Northern Ireland
To receive your SpecSavers discount voucher, call 0(0-353-)1-4755908 or 0(0-44-)2890-200130.
IBOA EXTRA
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ARTS & LEISURE
THE FUTURE IS AT STAKE
WE ARE STAKEHOLDERS
Bank District Secretaries Conference APPRECIATION: Applause from some of the delegates at the Bank District Secretaries Conference in Galway (Photo: Tadhg Keady).
The context for the book’s key themes was admirably set by Professor Bill Roche from UCD who also paid tribute to the authors’ skill in bringing the subject matter to life so vividly. The session also featured a video collage with images of some of the key events and personalities woven into the rich tapestry of IBOA’s history. Aside from formulating responses to the major industrial relations developments in key
employments – which are outlined elsewhere in this issue of Spectrum, delegates also heard a number of presentations on important developments taking place in the Union – including preparations for the launch of an online basic training course for IBOA Reps, ongoing work on creating an IBOA app for tablet computers based on Spectrum, and recent developments in the Union’s activities on health, safety and security.
Guest speakers, Alan Tate and Pat Brady, also provided useful updates for delegates on emerging trends in the areas of trade union organising and responses to the increasing incidence of personal cases, respectively. In between this actionpacked agenda, delegates also availed of the opportunity to network informally and exchange experiences.
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Galway 2012
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The Phantom of the Opera Bord Gais Energy Theatre, 27 July 2012, 6:30p Normal Price: E55 IBOA Price: E45
www.iboa.ie Organising through the crisis: Guest speaker, Alan Tate, from the UNI Global Union Federation made a very insightful presentation on how trade unions in the financial services sector are responding to the global crisis by building their membership strength in order to defend jobs, pay, terms and conditions (Photo: Tadhg Keady).
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Robert calls it a day
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BOA’s Danske Bank Group Officer, Robert Thompson, has decided to avail of recent developments in Northern Bank to pursue his career outside the Danske Bank Group. Accordingly he has resigned from the Union Executive and from his post as Danske Bank Group Officer. IBOA General Secretary, Larry Broderick, paid tribute to Robert for “his excellent service to the Union’s members in Northern Bank over sixteen years – particularly in his role as Bank Officer” representing staff in Northern Bank and National Irish Bank in National Australia Group and latterly Danske Bank. In addition to his immediate representative role, Robert also
On the move:(above) former Danske Bank Group Officer, Robert Thompson, has now resigned from Northern Bank. On the line: (above right) Robert Thompson (right) on picket duty during the 1994 strike in Northern Bank.
Handling Change A history of IBOA P
ublished by the Collins Press – and written by Paul Rouse and Mark Duncan, Handling Change, was specially commissioned by the Union. The evolution of the IBOA offers a fascinating picture of Ireland – not least of how banking moved from a thoroughly conservative industry to one so reckless as to bankrupt the Irish State. IBOA has a limited number of copies of the book for sale to members at the special discount price of E10 or £8 (including postage and packing). To order up to two copies at the special discount price, please send your name, address, the number of copies required and your IBOA membership number – together with a cheque or postal order for the appropriate amount to IBOA History Orders at IBOA House, Stephen Street Upper, Dublin 8 or e-mail history@iboa.ie.
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developed a keen interest in workplace health and safety – achieving a higher level qualification –and representing IBOA with distinction in a number of fora dealing with the issue. He was deeply committed to membership training and served on the Union’s National Education Committee.
Robert was also a longstanding member of the Belfast Bankers’ Club Committee. His resignation leaves two vacancies in the Union – for Executive Committee member and for Danske Group Officer – which will be filled in due course in line with IBOA’s Constitution.
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THE IRISH BANKERS’ CLUB
CLUB OPENING HOURS: Tuesday-Saturday: 4.30pm IBOA HOUSE, STEPHEN STREET UPPER, DUBLIN 8 until late. Telephone: 01-4758970 10am-12noon or after 5pm (Tuesday-Saturday). Sunday-Monday: closed.
Coming Up:
THE 27th BANKERS’ CLUB DRAW Magnificent Holidays and Magnificent Cash Prizes NB: 10 prizes of E100 each for early entries received by October 31, 2012 Still only E45 for 10 Great Draw Months
See Draw Application Forms included with this issue of Spectrum.
Friday September 28: Two weeks holiday for two to Majorca Friday October 26: 1st Prize – Two weeks holiday for two to Seychelles and Dubai
For more information, please contact Michael Martin, Honorary Secretary, Irish Bankers’ Club at the address above.
Each monthly draw also offers 2nd Prize: E300, 3rd Prize: E250, 4th Prize: 2100.
Results of recent Bankers’ Club draws are posted on the IBOA websites: www.iboa.ie/services/sports andsocial/bankersclub.html www.iboa.org.uk/services/ sportsandsocial/bankersclub.html
All Draws at 9pm. Bar Food Each Draw Night from 5pm-10pm plus Big Attendance Prizes
Club Bookings
SPECIAL OFFERS FOR 2012 All IBOA members,
y party or special function for just E100 for July-December 2012
kers’ Club for a
Phone Alan at 01-4758970
Book your Christmas Party at the Bankers’ Club and enjoy free room hire during November and December! july 2012
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Facilities include: • Reduced room hire rates • Bar and meeting room facilities. • Catering and DJ facilities available • Big screen for all sporting occasions • Full bar licence – extensions available
IBOA THE FINANCE UNION
New members welcome – Cost only E20 per annum!
Friday July 27: 1st Prize – Two weeks holiday for two in Portugal
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CLUB MEMBERSHIP
UPCOMING CLUB DRAW NIGHTS
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IBOA NEWS
SUITE DEAL FOR IBOA MEMBERS IN NORTHERN IRELAND
Minister for Employment and Learning, Dr. Stephen Farry, was on hand to endorse two major training initiatives by IBOA – the official opening of the Union’s computer training suite in the IBOA Offices in Malone Road, Belfast, and the signing of a new partnership agreement with the North-West Regional College for the provision of education and training courses for IBOA members in Northern Ireland. See Page 34-35
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BACK TO THE FUTURE
If you're going to be twofaced, at least make one of them pretty! Marilyn Monroe
The Union’s Pensioners Members’ Committee gears up to campaign for fair treatment. See Page 36
Entry to Dublin Zoo is FREE for IBOA members on Saturday September 1.
DIVERSITY AT WORK
IBOA backs campaign for more tolerant workplace. See Page 37
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E•V•E•N•T
Just show your IBOA membership card at the gate and get free entry for either 2 adults and 4 children or 1 adult and 5 children.
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LIFE & STYLE
Now more than ever
It’s time to build the Union
Gareth Murphy, IBOA Organising Official
Despite the unprecedented crisis in the financial services sector, IBOA has managed to ensure that any job losses would be voluntary and that major changes to terms and conditions of employment should be negotiated and agreed before implementation. The Union has managed to achieve this – even though in some cases it represents less than half of the staff in a particular employment. So just imagine how much more effective the Union
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aintaining the Union’s strength – and even building it where possible – is crucial to ensure that IBOA has the bargaining power to secure the best possible terms for members in their relationships with employers, regulators and other Government agencies. Every member has a personal interest in encouraging as many work colleagues as possible to join IBOA so that the Union can exert the maximum influence on behalf of everyone in the employment.
uld be – if it had higher mbership levels – not just the employments where OA already has members t also in other parts of the ancial services sector. To assist members who wish approach work colleagues to courage them to join IBOA, ecific resource materials are w available for members to wnload from the Union bsites – including PDFs, werpoint presentations and ord files. These resources include: Techniques and Tips for Organising; Powerpoint Presentation for Non-Members; IBOA Notice Board Poster Identifying Growth Potential: Mapping Your Workplace; • Dealing with Objections from Non-Members; and • Membership Application Form These resources are available at www.iboa.ie/my/strength/ or www.iboa.org.uk/my/strength/. For further information, please contact our Organising Official, Gareth Murphy, in IBOA House at 00-353-14755908 or 00-44-2890-200130 or gareth.murphy@iboa.ie.
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Suite deal
IBOA THE FINANCE UNION
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for Union members in Northern Ireland
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Minister backs IT training for IBOA members
M
inister for Employment and Learning in Northern Ireland, Dr. Stephen Farry performed the official opening of the new computer training suite in a ceremony last month at the IBOA offices in Malone Road, Belfast. The Minister also endorsed a new partnership agreement between the North West Regional College (NWRC) and IBOA under which the college will provide a number of education programmes for Union members across Northern Ireland (see page opposite). Speaking at the launch, IBOA Training Officer, Marian Geoghegan, said: “Finance workers in Northern Ireland face a very uncertain future. All of the major banking groups are retrenching – some more dramatically than others. “It has been estimated that up to 2,000 banking jobs could have been lost in Northern Ireland by the end of 2013 as the repercussions of this unprecedented global crisis
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work through the financial services sector here. “IBOA is endeavouring to assist our members in a variety of ways – both in terms of the traditional industrial relations agenda and other vocational supports – which can provide
Minister for Employment and Learning, Dr. Stephen Farry performs the formal opening of the Union’s IT training suite in Belfast – with IBOA President, Jessie Doherty (Photo: Kevin Cooper/Photoline).
Take pride in your union Entry to Belfast Zoo is FREE for IBOA members on Saturday October 6.
july 2012
some measure of security in these difficult times. “Our Computer Training Suite has already been put to good use by our first groups of learners. So we are confident that it will make a real difference for our members.”
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Just show your IBOA membership card at the gate and get free entry for either 2 adults and 4 children or 1 adult and 5 children.
IBOA Training Officer, Marian Geoghegan, signs the partnership agreement, watched by John Hueston of the North West Regional College and Union President, Jessie Doherty (Photo: Kevin Cooper/Photoline).
Express training Partnership opens up new horizons for members in Northern Ireland I
BOA’s training provision for members in Northern Ireland has taken a further step forward with the ratification of a partnership agreement between the Union and the North West Regional College (NWRC) – one of the foremost providers of adult education in the region. The formal signing of the agreement was witnessed by the Minister for Employment and Learning, Dr. Stephen Farry, whose Department has been responsible for administering the Union Learning Fund which is likely to support some of the training courses to be provided under the new partnership arrangement. ”The Union Learning Fund helps unions work in partnership with employers to raise employees’ skills levels and aspirations,” said Dr. Farry. “It also helps to ensure that we continue to invest in the skills and talents of our people – because it is people who will get us through these challenging economic times. “This training commitment will be made even more tangible by the partnership agreement between IBOA and the North West Regional College to provide future learning opportunities for finance workers.”
The College’s Principal and Chief Executive, Séamus Murphy, highlighted the NWRC’s key aim to provide quality education and training for all: “We are committed to providing programmes that respond flexibly to the educational and training needs of local industry, and we are pleased to offer this to our colleagues in the IBOA. This partnership will allow IBOA members to develop their lifelong learning and enhance their career prospects by accessing our portfolio of bespoke upskilling courses.” IBOA Training Officer, Marian Geoghegan added that the Union was confident that “our growing relationship with the North West Regional College will deliver further crucial support to them in the months and years ahead. She also acknowledged that these latest initiatives had been made possible by IBOA’s involvement in the Union Learning Project – which has been funded and supported by the Department of Employment and Learning through the Northern Ireland Committee of the Irish Congress of Trade Unions. “The contribution of the Union Learning Project supported by the Department cannot be overstated,” she said.
ARTS & LEISURE
The Union Learning Fund for Northern Ireland was established to promote activity by trade unions in support of the Government’s objective of creating a learning society. IBOA successfully applied to become a Union Learning project in 2011. Under this project, trade union members are encouraged to become Union Learning representatives (ULRs). A ULR is an activist who is trained to support learning in the workplace and to advise members about learning opportunities. There is evidence that more individuals will undertake training and education if they are offered information, advice and support from a ULR. ULRs communicate directly with fellow workers, employers and training providers to identify a range of learning opportunities and to make them available to the workforce. Any members interested in taking on such a role in their workplace should call the Union’s Training Officer, Marian Geoghegan, in IBOA House on (00-44)2890-200130 or e-mail her at marian.geoghegan@iboa.ie.
Learned Reps: Two of IBOA’s Union Learning Reps recently received diplomas from the Open College Network – John Burns (left) in Employment Law and Liam Ross in Occupational Health and Safety.
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he Union’s Pensioner Members’ Committee represents the interests of IBOA members who opt to continue as Union members when they leave the bank’s service on pension. Many former bank staff, now on pension, have retained their IBOA membership. This is to their benefit in several respects. They can make their concerns known to the Committee and raise them at meetings for pensioner members – such as the formal biennial meeting which elects the Committee, discusses a range of issues and hears a report from the General Secretary Larry Broderick – as well as at other meetings held from time to time.
SPECIAL FOCUS
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Age is no barrier
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Keeping up to date
There are social advantages also. Members enjoy meeting up again with former work colleagues at meetings – this is especially the case since some banks cancelled the annual pensioners’ lunches! Also, pensioner members are kept up to date with major issues. Pensioner members also receive Spectrum as well as other communications from IBOA from time to time. They also have access to the My IBOA area of the Union websites – which is exclusive to members and where they can learn about the latest developments in each mployment and the latest discounts on offer to members for various goods, services and social events.
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The Pensioners’ Committee, which meets quarterly, plays an important role in IBOA. It is represented at the Union’s Biennial Delegate Conference and may propose motions for debate which, if passed, become part of IBOA policy. The Committee’s Chairman and Honorary Secretary meet IBOA’s General Secretary and Honorary Secretary on a regular basis to discuss matters of mutual interest and concern.
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Planning for the Future: The Union’s Pensioner Members’ Committee pictured at a recent meeting (Photo: Tommy Clancy)
IBOA Pensioner Members’ Committee
The members of the current committee are: Hilary Acheson Cecil Barron Frank Cannon Leonard Coote Ken Doyle (Honorary Secretary) Maeve Gannon Colin Gracey Bríd Keelty Geraldine Langan Marie Lohan Tom Lydon Michael Miller John McKenna Margaret McGoldrick Brendan O’Donohue (Chairman) Ted O’Leary Seán O’Sullivan Fergus Reynolds Des Sheridan Harold Strong
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The Committee is affiliated to the Irish Senior Citizens’ Parliament – a key body which interacts with Government on matters of concern to pensioners and older people. The Parliament scrutinises legislative proposals coming from Government Departments – such as the Department of Health – and their likely effect on senior citizens. The Parliament also lobbies on the growing threats to occupational pensions, especially Defined Benefit schemes. The IBOA Pensioners’ Committee plays an active role in the Irish Congress of Trade Unions’ Retired Workers’ Committee – which seeks to represent the interests of retired workers. Still Campaigning
With the pay and terms and conditions of employment of serving staff coming under increasing pressure as banks continue to down-size, retired members of IBOA have been active in writing to their local parliamentary representatives to outline the need to treat staff
with respect – particularly in institutions that are virtually 100% State-owned. Pensioner members are writing to their own former employers deprecating the attack on staff terms and conditions many of which are regarded as contractual. How to Join
This is simple. As members retire from work on pension, they receive an application form from IBOA to rejoin the Union. The subscription is payable twice yearly, in January and July and amounts to E22.36 or £16.40 each half year. With early retirement packages on offer in many employments, it is likely that many active Union members may now become pensioners. It is in their interest and that of the IBOA that they continue their association with the Union when they retire. For more information on the work of the Committee, you can contact any member directly or send an email to info@iboa.ie. Ken Doyle
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Excellence in Diversity Seeking Inclusion of Gay, Lesbian and Bisexual Employees
Excellence in Diversity is a quick and easy to use online self-assessment toolkit that helps organisations to realise the benefits of gay, lesbian bisexual and transgender diversity. It will help organisations to: • measure their diversity performance against best practice standards • receive practical guidance
on how to develop their diversity practice • find different approaches to designing and implementing their workplace diversity strategy • identify short-, mediumand long-term targets to improve performance The toolkit is accessible on www.excellenceindiversity.ie
DON’T BE LATE FOR THIS VERY IMPORTANT DATE!
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Diversity Matters: Davin Roche, Director of Workplace Diversity for the Gay and Lesbian Equality Network (left) pictured with IBOA’s Marian Geoghegan at the launch of the new Excellence in Diversity online toolkit.
Once again, Cheerios and Cork Opera House aim to present the most spectacular Christmas pantomime in the land.
Join Alice, Mad Hatter, The Tweedles, the White Rabbit and a host of timeless characters as they set out on an adventure like no other in a quest to overthrow the villainous Red Queen and restore happiness to the land known as Wonder. Featuring stunning scenery and special effects, this production will be a magical musical roller-coaster ride for all the family.
IBOA is offering members tickets for the performance on Saturday, January 5, 2013 at 2.30pm at a special discounted rate of E20 compared to the normal price of E27. These tickets are available from Stephen Kennedy at Bank of Ireland, 32 South Mall, Cork. july 2012
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ow does your employer measure up in regard to their policies and practices on the inclusion of lesbian, gay and bisexual employees? Not well, according to some IBOA members who are interested in developing greater inclusion in the workplace. IBOA was singled out by Davin Roche, Director of Workplace Diversity at the Gay and Lesbian Network (GLEN), as a key support in the design of a new online toolkit, Excellence in Diversity, which was launched recently by Dublin’s new Lord Mayor, Naoise Ó Muirí, and Jim Ryan, Director with Ernst and Young. In particular, he thanked IBOA Equality Officer, Marian Geoghegan, for assisting in the development of the toolkit which has been piloted in the financial services and IT sectors. Marian has asked IBOA members, who wish to assist in progressing the LGBT agenda in the financial services sector, to contact her by e-mail at marian.geoghegan@iboa.ie.
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Lionel Richie’s greatest hits – country style Tuskagee tour focuses on soul star’s Southern roots
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T
he European leg of Lionel Richie’s Tuskegee tour kicks off at the O2 in Dublin on September 24, followed by Belfast’s Odyssey Arena on September 26. The tour marks a new departure for the former soul man into Country music, showcasing his new album, Tuskegee, which features new treatments of Richie’s greatest hits in duets with major country artists like Willie Nelson, Shania Twain, Kenny Rogers and Jimmy Buffett. While the prospect of “It’s about where I came Lionel Richie answering the from and how I arrived at call of Country raised many where I am today,” says Richie. eyebrows initially – and even “I’ve come full circle. It’s a infuriated some Country music validation. It’s a state of mind – a purists – it has proved highly place that represents possibilities, popular with the public in hope, promise, empowerment, the US where Tuskegee is now and where dreams come true – the second biggest selling no matter how old or young album of 2012. you are, or where you’re from.” Named after his home In a remarkable career town of Tuskegee, Alabama in spanning more than thirty America’s Deep South, the years, Richie has sold over 100 new album has been described million albums; registered 22 as “a journey of return and top 10 hits; and won five revelation.” Grammys, a Golden Globe and
IBOA Family Day
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Lionel Richie: The Tuskagee Tour Monday September 24 The O2 Dublin 7.30pm Normal Price: E78.00 plus E5.00 booking fee Special IBOA Price: E65.00
Wednesday September 26 Odyssey Arena Belfast 7.30pm Normal Price: £57.00 plus £5.00 booking fee Special IBOA Price: £45.00
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an Oscar for Best Original Score. He has also received a host of other awards from virtually every major entertainment organisation. Audiences are rarely disappointed with Lionel Richie’s exuberant live shows which draw from his very extensive repertoire of songs from the early days of the Commodores, through the memorable soulful classics of the 1980s to the more recent up-tempo pop material from the 2000s. IBOA is offering members a special discount on tickets for the shows in Dublin’s O2 and in Belfast’s Odyssey Arena – on a strictly first come, first served basis. Requests for tickets should be made with the Sports and Social Department in IBOA House by telephoning 00-353-1-4755908 or 00-2980-200130 or by logging on to the Union websites.
ARTS & LEISURE
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LIFE & STYLE
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FAIR DEAL TO STAY IN AIB
AIB staff meet to develop campaign to protect pay, terms and conditions for the staff who will remain with the Bank after the restructure. See Page 44
LEGACY FROM THE DARK AGES
Irish Bank Resolution Corporation moves to address a long-standing issue for former Irish Nationwide staff. See Page 42
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ULSTER SAYS SORRY
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As RBS Chair, Sir Philip Hampton, apologises to Ulster Bank staff for the RBS IT foul-up, Ulster Bank management suspend restructure to assess the damage. See Page 45
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Just because you fail once, doesn't mean you're gonna fail at everything. Keep trying and believe in yourself! Marilyn Monroe SPECTRUM
AIB’S BRAVE NEW WORLD REQUIRES FURTHER SACRIFICES FROM STAFF
IBOA has rejected proposals from AIB's senior management to close down its Defined Benefit pension scheme and to extend the current pay freeze for ordinary staff until the end of 2014. See Page 43-44
july 2012
NIB CLOSURES RAISE FEARS
Proposals from Danske Bank to close down National Irish Bank’s retail branch network have raised concerns about the strength of Danske’s commitment to Ireland under new CEO Elvind Kolding. See Page 46-47
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Banking on the future
Parting on good terms: The full terms of the Change Management Agreement – including the provisions for redundancy and early leaving – are available on the IBOA websites at www.iboa ie/bankof-ireland/ or www.iboa. org.uk/bank-of-ireland/. Members will need their IBOA membership number to access these pages. The number is displayed on the IBOA membership card. It is also listed on the Spectrum address label.
“Management has also given a commitment that all existing agreements with the Union will be honoured. “There will be no change to terms and conditions of employment without advance notice and negotiation with IBOA. “Any reduction in staff numbers will be managed on a voluntary basis,” he said. “The Bank has also committed to engage with IBOA on all aspects of reward, with a view to reaching an agreement when the Bank returns to profitability,” added IBOA Bank of Ireland Officer, David Keane.
“Any employees affected by change will be managed within the key principles detailed in the Re-deployment, Relocation and Change Transferability Agreement previously negotiated by IBOA,” added David Keane. Severance terms within this agreement are available to eligible staff, who are being invited to apply as the Bank carries out a phased restructure of its business. A number of applications are to be sought from each region and business unit and will be managed by the Bank over a period of time.
Protracted process of engagement
IBOA has attempted to agree a Change Management Agreement with Bank of Ireland Group since the Bank first introduced its EU Viability Plan in 2009. The first, brokered by independent mediator, Mark Connaughton, was agreed in July 2010 and allowed the Bank to restructure its business in line with its EU Viability Plan while protecting staff who were affected by this restructuring in Great Britain and Northern Ireland. In April 2011, when the Bank tried to implement this agreement in the Republic of Ireland, it was blocked by the Republic’s Department of Finance. So IBOA re-engaged immediately with the Bank’s senior management and with Mr. Connaughton – with the result that revised terms were finalised in September 2011. When the Department of Finance again refused to endorse these new terms, the Bank was unable to honour its agreement with IBOA. When the Bank attempted to roll out its change programme without agreement, IBOA withheld co-operation until a new round of negotiations was held – leading to a final agreement which was ratified in a ballot of members.
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he Union’s Bank of Ireland negotiating team has engaged in a series of meetings with Bank of Ireland Group senior management following the acceptance of new Change Management Agreement by a clear majority in a recent ballot of IBOA members in Bank of Ireland Group. “This agreement will form the foundation for the conduct of industrial relations within the Bank,” said IBOA Senior Industrial Relations Officer, Gerry Hanna. As well as finally securing agreement on the parting terms for staff who opt to leave the Bank voluntarily, IBOA members have endorsed an agreement which in the current economic climate, includes significant provisions such as: • job security; • protection of terms and conditions of employment; • an agreed process to manage change; and • a commitment to honour existing agreements between IBOA and Bank of Ireland management. “Under the new deal between IBOA and the Bank, all change will be negotiated with IBOA,” said Gerry Hanna.
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Framework for change agreed at Bank of Ireland
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End of an Error? IBRC makes full refund payment to settle longstanding INBS pension anomaly
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fter several months of intense discussions on the commission charges paid by members of the Irish Nationwide Building Society Defined Contribution pension scheme between 1991 and 2009, IBRC has made a full refund payment – which have been very well received by members.
INBS Headache: The administration of the staff pension scheme was one of a number of unusual practices at Irish Nationwide Building Society under the stewardship of former CEO of Michael Fingleton. (Photo: Leon Farrell, Photocall Ireland).
The administration of the staff pension scheme in Irish Nationwide (INBS) was one of a number of major concerns identified by the members who joined IBOA in 2009 and 2010 – following the demise of the previous management regime, led by Chief Executive, Michael Fingleton. While the very generous terms of Mr. Fingleton’s own
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Claiming A Refund If there is a change in your employment circumstances – like moving onto part-time hours or changing to job-sharing, you may be entitled to avail of a lower subscription rate. The current membership categories and rates are published on the IBOA websites at www.iboa.ie/join/subscriptions.html and www.iboa.org.uk/join/subscriptions.html.
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Please make sure you inform IBOA Head Office of any change as soon as possible so that your subscription rate can be adjusted – and you receive prompt refund of any overpayments.
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Please note that the rebate for any overpayments will be capped at the amount overpaid for the first 24 months after the change of status occurred. You can check your personal profile online in the My IBOA Section of the Union websites and make any necessary amendments there – or you can contact the Membership Department in Head Office at the address below. Membership Department • IBOA The Finance Union • IBOA House • Stephen Street Upper • Dublin 8 • Tel: (00353)-1-4755908 or (0044)-2890-200130 • E-mail: info@iboa.ie SPECTRUM
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pension pot have achieved a certain public notoriety, the rest of the INBS employees were not so fortunate. Not only does the pension fund they are to share amount to less than a quarter of the size of the former CEO’s personal nest-egg – but some rather unusual charges were levied on the members of the scheme. Rather than being treated as a standard employee pension scheme which is administered on a group basis, the INBS scheme was developed as a number of individual plans – such as might have been sold to customers of the Society taking out personal pensions – with the result that separate commissions – amounting in some cases to many thousands of euro – were charged to each employee who joined the scheme. When the Irish Bank Resolution Corporation (IBRC) took over the INBS business – and many former INBS staff – IBOA again raised the issue of the pensions “anomaly.” The refund payment made by IBRC has been very well received by members who worked in the former INBS as yet another vindication of their decision to join IBOA.
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BOA has rejected proposals from AIB's senior management to close down its Defined Benefit pension scheme and to extend the current pay freeze for ordinary staff until the end of 2014. Union General Secretary, Larry Broderick, said that the Bank’s attempt to further undermine the overall remuneration of its ordinary staff was totally unacceptable – in view of the substantial savings AIB had already made on staff costs through the reduction in staff numbers that had already taken place since 2008 and with even more savings anticipated in future through the implementation of a major restructuring programme. “The move on the Defined Benefit pension scheme would produce relatively modest cost
Larry Broderick: AIB management needs to rethink its approach to staff remuneration (Photo: Tommy Clancy).
savings for the Bank – but would have a significant impact on the retirement income of many ordinary bank officials,” he said. “It would be particularly distressing for staff who have recently agreed to major changes in the scheme involving reduced benefits and increased contri-butions. “As for the proposal to freeze pay until the end of 2014, our members throughout AIB Group have already endured a pay freeze since 2009. Indeed some of our members have even been denied contractual payments – such as increments and performance awards – and unlawfully so, in the view of recent industrial tribunals in London and Belfast. “At the same time, it has been revealed that senior executives in AIB Group have been in receipt of substantial bonuses during this period,
that a tiny minority of selected staff have received top-up awards known as retention payments and that the Bank has also engaged an army of consultants costing many millions,” he said. “If implemented, the Bank’s latest proposals would further erode our members’ living standards at a time when AIB staff are being asked to make even more sacrifices in the most far-reaching restructure in the Bank's history. “Around 2,000 men and women have already left AIB since 2008 as a result of the non-replacement of retiring employees and the non-renewal of contracts for temporary staff. The Bank has also recently announced its intention to seek a further 2,500 job reductions over the next two years. ⁄
july 2012
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IBOA slams AIB proposals on pensions, pay and benefits
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Hare-brained?: AIB management proposes pay freeze, withdrawal of benefits and closure of Defined Benefit pension scheme.
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‘Fair deal to stay’ campaign under way T
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“In case we forget, all of these extraordinary measures have been necessary because of the reckless mismanagement of the Bank by its former senior executives,” the IBOA leader declared. “It is unacceptable that the Bank should ask those staff who will remain with the Bank – and on whose shoulders the recovery of AIB ultimately depends – to contemplate even more sacrifices at this time.”
Fair Deal to Stay: AIB members and IBOA staff – led by the Union’s General Secretary, Larry Broderick – demonstrate for a Fair Deal to Stay at the AIB Group AGM at Bankcentre in Dublin earlier this month.
INDICATIVE BALLOT An indicative ballot of AIB members taken in the wake of Mr. Duffy’s announcement, revealed that Union members are virtually unanimous in their rejection of the Bank’s cuts plan. An overwhelming majority would be prepared to join in litigation to prevent the implementation of the proposals while a substantial majority have said they would be prepared to take industrial action if the Bank attempts to impose the changes without proper negotiation and agreement with the Union. “This result should provide a wake up call for AIB’s senior management and for the Irish Government, AIB’s predominant
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share-holder, on the need to engage meaningfully with the Union on a fair deal to stay for those staff who will be essential to the future capacity of the Bank to meet the very daunting challenges that lie ahead if AIB Group is to recover.“ “An enlightened management would recognise the importance of motivating staff in a positive fashion to restore AIB to sound financial health in the interests of all its stakeholders. “An enlightened majority shareholder – the Irish State – would also see the value in such an approach for the public good. “AIB’s Chief Executive, David Duffy, has committed to engage with IBOA on these and other issues – including the Bank's future plans. IBOA is prepared to enter these talks in an effort to ensure that our members’ concerns are fully understood. “However, we believe AIB’s senior management must reconsider its position – taking due account of the major contribution its staff have already made. Such a rethink by the Bank would be in the best interests of all of AIB’s stake-holders, including its customers,” Larry Broderick declared.
he Union’s Fair Deal to Stay campaign in AIB has begun to gather momentum in recent weeks – with meetings of members and activists – either taking place or planned in all three jurisdictions. Around 250 IBOA members in First Trust Bank met in Belfast earlier this month – following an earlier meeting of activists. The mood of the meeting was determined as speaker after speaker condemned the proposed changes to pensions, pay and benefits announced by the Chief Executive in June. Similar sentiments were expressed in further meetings of AIB (GB) members – held in London, Manchester and Birmingham last week. Additional meetings are planned for locations in the Republic of Ireland.
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n a crisis meeting in Belfast with IBOA’s Ulster Bank Executive Committee, the Chairman of RBS, Sir Philip Hampton apologised to staff and customers for the major problems faced by Ulster Bank arising from the RBS technical problems – and fully acknowledged the tremendous support given by staff at the Bank at this crucial time.
IBOA’s Ulster Bank team told Sir Philip of their fears for the potential reputational damage to the Bank as a result of the RBS IT crisis. They explained that Ulster Bank staff, as well as customers, would need reassuring about the strength of RBS’s commitment to Ulster Bank and Ireland in the future. The Union team also urged the RBS Board to review the planned restructuring of Ulster Bank in light of these developments. In response, Sir Philip committed RBS to continuing support for Ulster Bank, north and south, and agreed that RBS would review all aspects of the incident and its impact to ensure that Ulster Bank is not affected again in the future. After the Chairman's reassurances, a separate meeting took place with Ulster Bank’s Head of Human Resources,
Steve Daniels, and members of its senior management team, to discuss a range of operational issues which had faced IBOA members in Ulster Bank in their crisis. Aside from ensuring that overtime working would operate on a voluntary basis and that appropriate overtime allowances would be paid, members were also concerned about the possible adverse consequences of abandoning sales targets and other performance criteria in order to focus on the immediate needs of customers. However, the Bank’s senior management has assured the Union that the suspension of targets necessitated by the crisis would not result in any negative consequences for staff. Although Ulster Bank staff have occasionally had to deal with customers who were deeply distressed, the majority of
Sign of the Times: Ulster Bank notice advises customers of the nearest branch opening late in Dublin. (Photo: Sam Boal/ Photocall Ireland).
Chairman of RBS: Sir Philip Hampton
customers appear to have been very appreciative of the staff’s commitment and courtesy in attempting to address their concerns. In all of the vox pops conducted by the media to date, customers have drawn a clear distinction between the response from the frontline staff and that of the Bank’s management – especially in terms of the quality and timeliness of its communications with the public.
Restructure Talks The negotiations on the Bank’s plans for a major restructuring of the business – which have been continuing since the acceptance of the recommendations of the independent mediator, Martin King – were suspended once the crisis began. When the talks resume, the Union team will seek a complete review of the senior management’s plan in light of the need to rebuild the Bank’s reputation with its customers and with the general public in the wake of the unprecedented developments of recent weeks.
july 2012
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Committed Ulster Bank staff win praise from RBS chair and, more importantly, customers!
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Patience under intense pressure
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ational Irish Bank should review its plan to close its retail branch network – which would result in a minimum of 100 job losses throughout the Republic of Ireland, according to IBOA. Responding to the Bank’s announcement at the end of June, Union General Secretary, Larry Broderick said the new management’s proposals are “totally at variance with the commitments given by Danske Bank as late as May and subsequently made at the time of the Bank’s announcement on its restructuring in Ireland.” Describing it as the blackest day in the history of National Irish Bank – especially for its staff – the IBOA leader warned that the proposed closure of the branch network would have huge implications for staff and their families. “While the financial position of National Irish Bank has been seriously compromised as a result of the mismanagement of the Bank in the past,” he said, “the decision to effectively scapegoat the branch network and its staff is disingenuous. “While IBOA’s primary concern is for our members in National Irish Bank, we also have serious questions about the impact of the Bank’s proposed changes on customers.
Shutting up shop? Radical surgery proposed for National Irish Bank (Photo: Photocall-Ireland).
Black day for staff in National Irish Bank Union appalled by plans to close branch network
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“The Bank’s management is attempting to sell this radical surgery as a response to changing customer demand – which now favours a more high tech banking environment. “They tell us that at least 70% of their interactions with customers are now conducted by phone and over the internet. “But that is hardly surprising when you consider that National Irish Bank had already withdrawn cash and cheque handling facilities from their branches – with customers redirected to An Post instead. “Recent events elsewhere in the financial services sector have also demonstrated quite clearly how dangerous it can
be to put all your eggs in the IT basket. “Fortunately Ulster Bank has a network of branches – staffed by highly dedicated employees who have been able to salvage at least some elements of the Bank’s battered reputation through personal contact with customers. ⁄
As we go to press negotiations have just commenced between National Irish Bank and the IBOA team – led by Senior Industrial Relations Officer, Gerry Hanna. All developments arising from the talks will be covered on the IBOA websites.
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“The business model being proposed for National Irish Bank by Danske is highly questionable since it would inevitably minimise the crucial role of branch staff in building and maintaining relationships with customers.” Expressing further concern about the Bank’s long-term intentions for many of the jobs that would remain, Larry Broderick said that on the basis of developments in National Irish Bank since 2008, the trend appears to be leading towards a gradual wind-down of the Bank – with remaining customers effectively serviced from Northern Bank. “The plan to rebadge the two institutions under the Danske Bank brand appears to be a rather expensive exercise to disguise this fact. IBOA has sought an urgent meeting with Danske Bank’s Chief Executive, Eivind Kolding. The Union also intends to meet Ulrik Nødgaard, Director General of Finanstilsynet, the Danish Financial Services Authority, since National Irish Bank is legally a branch of Danske Bank. The Union has written to the Taoiseach, the Tanaiste and the Minister for Finance, since this development highlights, once again the need for a comprehensive job strategy for the financial services sector in the wake of substantial job losses proposed earlier this year in Ulster Bank, AIB and Bank of Ireland.
both Northern Bank and National Irish Bank to discuss the Danske Bank proposal for the two banks and to highlight a range of key concerns raised by members about its possible impact. In the Northern Bank talks IBOA had received assured that would continue to manage change in line with the existing agreements with the Union which provide for job security and redeployment for affected staff.
Great savings and offers for IBOA members in Great Britain and Northern Ireland from Thomas Cook – including a 6% discount on thousands of holidays. Check the Members Only Section of the IBOA websites for more information. july 2012
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Danske CEO, Eivind Kolding
alks on the proposed restructure of Danske Bank's two Irish businesses – Northern Bank and National Irish Bank (NIB) – under a unified Danske Bank brand have been put on the back burner for a while following the dramatic NIB announcement about the proposed closure of its branch network. Before the announcement was made, IBOA’s Danske Group team had begun to engage with senior representatives from
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THE OLYMPIC FLAME BURNS BRIGHTLY – FOR A FEW SECONDS!
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IBOA member and self-confessed couch potato, David Lemon, dreams of Olympic glory – and then thinks better of it!
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for IBOA members only! Give a girl the right shoes, and she can conquer the world. Marilyn Monroe SPECTRUM
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Around 1,820,000 people in the Republic are left with E100 or less each month after all their bills are paid. See Page 53
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From inauspicious beginnings, her career in Hollywood fascinated global audiences – as well as an All-American sports star and an allegedly “un-American” playwright. She is reputed to have been courted by attractive actors and potent politicians. Her tragic death fifty years ago in August 1962 has not only given rise to numerous theories about her final hours – but also served to confirm her status as an international icon that has inspired writers, musicians and artists.
Gladys then changed Norma Jeane’s surname to Baker, the name of her first husband. However, Gladys’ mental illhealth meant that the child was passed around to family members and friends and even orphanages on occasions. To avoid another orphanage stay a family friend orchestrated a marriage proposal when Norma Jeane was sixteen. When her husband, Jim Dougherty, was objected strenuously to the famous skirtstudio was printed in newspapers sent to the Pacific with the merchant mablowing scene. throughout the United States, reports of rine, Norma Jeane began working on an Becoming increasingly concerned a romance with the Yankee Clipper led assembly line at an aeronautical plant. that she was being typecast as a “dumb to further public interest in Monroe. In 1945 a photographer took a snapblonde,” Munroe was determined to In 1953, she played the leading role shot of the stunning brunette at the broaden her range. “I want to grow and as a femme fatale plotting to murder her factory and encouraged her to develop and play serious dramatic husband (Joseph Cotten) apply to the Blue Book Modelling parts. My dramatic coach, Natasha in Niagara, a meloAgency. After being told that they Lytess, tells everybody that I have dramatic film noir. were looking for models with a great soul, but so far nobody's As audiences became lighter hair, Norma Jeane dyed her interested in it,” she told the New ever more captivated by hair golden blonde and quickly York Times. the appeal of the breathy, became one of the agency’s most Nevertheless she began to blonde bombshell, her successful models. hone her craft at the Actors’ growing talent for light A screen test and contract with Studio in New York under the comedy was apparent in Joe DiMaggio Arthur Miller 20th Century Fox followed along direction of Lee Strasberg who How To Marry A Millionwith a new name: Marilyn Monroe. later praised Monroe and Marlon Brando aire, Gentlemen Prefer Blondes and The While her early film roles were as the two students out of “hundreds and Seven-Year Itch. minor, her performances in The Asphalt hundreds” that stood out above the rest. The latter film, or more accurately Jungle and All About Eve in 1950 began Monroe achieved critical acclaim for one particular scene in it, is reputed to to cause a stir – not least with baseball her role as Chérie in Bus Stop, released in have sparked the end of her marriage to hero, Joltin’ Joe DiMaggio, whom she 1956. The film, her co-star, Don Murray, Joe DiMaggio after nine months. began dating at this time. and Monroe, herself, all received Golden After tying the knot in January 1954, When a photograph of DiMaggio Globe nominations. Monroe sued for divorce on the grounds ⁄ visiting Monroe at the 20th Century Fox of mental cruelty when Joe DiMaggio
Marilyn:
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Behind the icon
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n June 1926 Norma Jeane Mortenson was born in the charity ward at the Los Angeles County Hospital. Her mother, Gladys Monroe Baker, had separated from Martin Mortenson before she became pregnant and divorced him after she gave birth.
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According to Joan Greenson, the daughter of Monroe’s last psychiatrist, Marilyn was “passionate about equal rights, rights for blacks, rights for the poor. She identified strongly with the workers.” Monroe also supported the anti-nuclear campaign, led by the Committee for a SANE Nuclear Policy, which also listed Marlon Brando, Henry Fonda, Harry Belafonte and Albert Schweitzer among its more prominent sponsors.
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During the filming of Bus Stop,Monroe’s growing relationship with playwright, Arthur Miller, was becoming more public – at just about the time Miller was called to appear before the House Un-American Activities Committee in the US Congress, like many in the film industry in the 1950s – to explain his alleged communist affiliations. When Miller refused the Committee’s order to identify communists of his acquaintance, he was charged with contempt of Congress – but later acquitted on appeal. At the same time, Monroe rejected pleas from studio bosses to abandon Miller rather than put her career at risk from the negative publicity. In 1956, as the press became ever more excited about the relationship between “The Egghead and The Hourglass,” a reporter, who was pursuing the couple by car, was involved in a crash which resulted in a fatality. Deeply distressed, Monroe and Miller immediately announced their engagement – in part, it seems, to quell the media hysteria around their relationship – and married in June 1956. Reflecting later on his attraction to Monroe, Miller wrote: “She was a whirling light to me then, all paradox and enticing mystery, street-tough one moment, then lifted by a lyrical and poetic sensitivity that few retain past early adolescence.” As the street-tough head of her own production company, Marilyn Monroe Productions, she released The Prince and the Showgirl in 1957 – starring opposite Laurence Olivier and earning a BAFTA acting nomination in the process. In 1958, she made the Billy Wilder comedy, Some Like It Hot, with Jack
Marilyn and Ella
Lemmon and Tony Curtis. Although it received a ‘C’ (Condemned) rating from the National Legion of Decency (formerly the Catholic Legion of Decency) on its release in 1959, Some Like It Hot was both a critical and popular success. The film won a slew of Oscars – including Best Director for Wilder – as well as Golden Globes for Best Motion Picture (Musical or Comedy), Best Actress (Musical or Comedy) for Monroe and Best Actor (Musical or Comedy) for Lemmon). Subsequently acclaimed as one of the best films ever made, Some Like It Hot was listed by the American Film Institute in 2000 as “the greatest American comedy film of all time.” During a short stay in Nevada in 1956, Arthur Miller wrote a short story about some of the locals. By 1960 the story was to become Monroe’s last completed film, The Misfits. Directed on location in Nevada by John Huston with a cast including Clark Gable, Eli Wallach, Montgomery Clift and Thelma Ritter, the film was dogged by illnesses to all of the leading players apart from Wallach. Although Monroe had to be hospitalised for ten days, she returned to Nevada to finish shooting. Miller’s screenplay for The Misfits was meant to be a Valentine gift for his wife, but by the time filming started in 1960 their marriage was beyond repair. Within ten days of completing the film,
Jazz singer, Ella Fitzgerald, took a major step to stardom when Monroe persuaded the owner of the Mocambo Club in Hollywood to book the first black artist to perform at the venue with the promise that Marilyn would come to see Ella whenever she sang there. “After that,” Fitzgerald recalled, “I never had to play a small jazz club again. She was an unusual woman – a little ahead of her times. And she didn’t know it.” SPECTRUM
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the couple had decided to separate and Gable had suffered a fatal heart attack. Opening to mixed reviews, The Misfits was not a commercial success – although Huston received a Directors’ Guild nomination for the film. However, eventually the performances of Gable, Monroe and Clift came to be admired by many film critics and the film has since come to be regarded as a classic. In the ensuing months, Monroe’s growing dependence on alcohol and prescription drugs began to take an increasing toll on her health. With her divorce from Miller finalised in January 1961, she voluntarily entered a psychiatric clinic in February. After two minor surgical procedures in May and June, Monroe returned to California to convalesce. In 1962, she began filming Something's Got to Give, directed by George Cukor, and co-starring Dean Martin and Cyd Charisse. As health issues meant that she could only report for work on twelve out of 35 days, Monroe was fired and hit with a $0.5m law suit from 20th Century Fox. In what were to be the final weeks of her life, Monroe had discussions about future film projects, as well as continuing negotiations on Something's Got to Give. However, none of these came to fruition as Marilyn Monroe died from an overdose of barbiturates in August 1962 in controversial circumstances at her new home in Brentwood, Los Angeles. Though officially classified as “probable suicide,” the possibility of an accidental overdose – or even homicide – have not been entirely ruled out. • In 1999, Marilyn Monroe was rated the sixth greatest female star of all time by the American Film Institute.
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Olympic torch-ure!
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t was a throw-away remark from my wife (“look at the gut on ye, ya big puddin’ ye”) that prompted me to consider a lifestyle change. Perhaps a take-away remark would be a more accurate way of putting it though. Should I abandon, or at least put on hold, my career as a couch potato, which up until now has been a spectacular success?
A position as Chairman – or rather comfy chair man – of Slob Leisure Pursuits Plc was surely just around the comer. Nevertheless, any number of people have changed career at a late stage in their lives so there was no logical reason why I couldn’t do likewise. Any amount of physical reasons why I couldn’t, mind you, but I cast aside such defeatist notions. Perhaps with a few sessions in the gym I could acquire a six pack stomach to replace the current beer keg variety. This option was somewhat alluring; what man wouldn’t be attracted by the prospect of being surrounded by leotardclad, lithe young women working out to the pounding beat of Beyonce?
However, I figured that a balding, red-faced, pot-bellied, middle-aged tub of lard struggling with a chest press would soon become an object of derision. So in view of the potential for embarrassment, and of course the fact that the gym would probably slim down my wallet at a much faster rate than my belly, I rejected this option. Swimming was a possibility but a natural aversion to water, finely honed during my teenage years, and the reduced opportunities for breathing when you’re at the knackered stage quickly rendered this a non-starter. Several films and packets of crisps later I decided that jogging was the answer; it didn’t cost anything, or require any particular
IBOA member and selfconfessed couch potato, David Lemon, dreams of Olympic glory – and then thinks better of it!
ARTS & LEISURE
skills, apart from tying your shoelaces, which I had mastered some time ago. It also had the advantage of fewer witnesses being present when the unpleasant side effects of your exertions are most evident – when you’re puking! So, having decided on jogging I immediately sprang into action, insofar as a couch potato can spring, and donned my track suit and trainers which – though lying idle for around twenty years – remained stylish and fashionable. Track suits hide a multitude of sins and unseemly bulges and as I glanced in the mirror I told myself I didn’t look too bad. “Are you going out in that ridiculous headband? You’ll look like a complete prat,” remarked my wife, once again displaying that trait for being oblivious to any sensitivities that may exist. I did a few stretching exercises, which I had learned from watching the Olympics on television. See, not all couch potato activity is wasted! Feeling suitably stretched the time had arrived for me to venture out on to the normally empty streets. They weren’t empty today, of course, as all the neighbours were out in force, mending fences, mowing lawns, repairing cars and unintentionally offering me encouragement. Their collective guffaws of laughter ensured I set off at a cracking pace, which I kept up for all of a hundred yards until I was round the comer and out of sight. I slowed to a gentle jog and after another fifty yards developed a stitch. I slowed to a crawl and after several more paces I ‘hit the wall.’ This is where the body sends a message to the brain to the effect: “Catch yourself on. I can’t take any more and if you keep moving, never mind running, I’m just going to collapse in a heap.” All athletes ‘hit the wall’ at some stage in a race – though usually it is after 18 miles not 180 yards! It is then a case of ‘mind over matter,’ when the athlete summons up all his inner strength to keep going. ⁄
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What kept me going was h alternative of limping b home past the neighbours l than two minutes after I had off. I decided to hang in there I walked for a bit, then stepp up to an energetic stroll. My heart was pounding, arms and legs ached. I was str gling for breath and, thanks to wife, I could hardly see wher was going as the swea streamed into my eyes. I wa having a hard time convincin myself that this was better th watching Match of the Day. But I kept going in the be that the long-term benefits of journey to health and fitn would outweigh the short-te cost of getting there. My sti eased so I increased my speed 2mph. For the next 15 minute plodded on manfully, fear that at any moment the pol would slap a “Slow Mov Load” sign on my back or charge me with loitering. As I neared the end of the run I made sure to keep enough in reserve to finish with a flourish and impress all my cynical neighbours that this vigorous effort was not taking too much out of me. I turned the corner into our street, and sprinted, at almost 3mph, over the last fifty yards. Robert, the lawnmower man
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Sweat flowed from every pore, attracting the dog, which proceeded to lick my face while I lay there with my tongue hanging out, unable to do anything about it.
from next door, later told me that the only thing that gave the game away was the white froth on my lips and the slabbers dangling from my chin. Once inside, I flopped on to the sofa, gasping and groaning and staring longingly at the remote control. Sweat flowed from every pore, attracting the dog, which proceeded to lick my face while I lay there with my tongue
The Physio Company is a growing chartered physiotherapy company with 21 clinics already in operation across Cork, Waterford, Galway & Dublin. On production of their Union card, IBOA members are entitled to: • E10 discount on treatment charges • Preferred Appointment Times • Free 15 minute Assessment SPECTRUM
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july 2012
ng out, unable to do anyabout it. Within half an hour I could again and an hour later, a painful struggle up the , I lay in a steaming hot I climbed out just as my began to shrivel up, dried lf off and clambered into tterly exhausted. decided to waive my conrights, as much to protect eputation as anything else, was asleep in 9.4 seconds, within Olympic qualifyme. slept the sleep of the eous and dreamed of gold ls, cheering crowds and, in of the righteousness, finely ted female athletes from ern Europe. I imagined warm embraces after I had ed from the podium, where just been presented with old medal for winning the metres and set a new world record to boot. There was no explanation in the dream as to why there were so many women at the men’s medal ceremony so I put it down to my newly found animal magnetism. The next day I felt fine and promised myself another jog in a day or two, as you don’t want to overdo these things and anyway the Olympics were on television and might provide a few more tips. The day after that I promised myself I would never run again. Every muscle in my body ached, tying my shoelaces was out of the question and I could only get about if I stumbled around like a cross between John Wayne and a tortoise with a dodgy hip. Somehow I managed to get through the day and that night I told my wife we’d have to find another solution to getting rid of my beer gut. “You could always stop drinking beer,” she said – somewhat malevolently, I thought. My heart pounded, my legs buckled and I broke into a sweat. It felt a bit too much like jogging for my liking. “I’ll tell you what, you can stop putting gravy on my chips,” I suggested. Looks like I’ll have to pass on that Olympic medal.
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Levels of personal debt reaching alarming levels A
round 1,820,000 people in the Republic are left with E100 or less each month after all their bills are paid. Half of bank account holders (50%) are unaware of what their bank charges to operate their current account while 54% of current account holders have no idea what penalties they pay when their account goes overdrawn. These are some of the startling results from a survey published earlier this month by the Irish League of Credit Unions (ILCU). The ‘What's Left’ tracker survey also found that Irish consumers owe on average E1,100 on their credit card – with 25% of credit card holders relying on their card to make ends meet each month. The report also revealed that 46% of those with a credit card do not know the interest rate charged on their card. Moneylenders
The ILCU survey also found 40% of consumers have had to borrow to pay their household bills in the past 12 months. Of this group, the largest pro-
portion rely on financial help from family and friends, 30% use the credit union, 10% rely on their bank and 10% on moneylenders. Expressing alarm at the role of moneylenders. ILCU Chief Executive, Kieron Brennan, said: “The ILCU recently called on the Government to put a legal cap on the interest rates charged by moneylenders in Ireland. “No such cap currently exists but in practice, the ceiling is just below 190% APR. With the level of personal indebtedness and financial exclusion in Ireland, there is a real danger of compounding the problem by allowing legal moneylenders to charge excessive rates.” Mortgage and rent continue to be the most expensive bills for the majority of Irish adults (72%). Groceries remain in second place (57%). Utility bills remain in third position (54%). Work Related Expenses
Child care comes in as the greatest work-related expense at E520 per month on average (for those with children), this
is followed by car fuel (E145 per month), daily lunches (E110 per month) and public transport (E77 per month). Commenting on the latest ‘What’s Left’ Tracker, Kieron Brennan added: “The issue of personal debt is something we are hearing more and more about and the issue is a growing concern, particularly for those who are relying on their credit card to make ends meet every month. “For consumers in general, it has never been more important that they really begin to get into the practice of managing their money very tightly. Keeping finances on track is a mix of being diligent and shopping around for the best value.” The credit union smartphone budgeting app, MyBudgetBuddy, is an easy-to-use budgeting application that helps you understand and manage your income and expenses and is available to download from the Android market and iTunes. For those who do not have smart phones, the ILCU has useful tips and information available for download on www.creditunion.ie/whatweoffer.
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IS THIS THE FIRST LESBIAN HEROINE IN AN ANIMATED FEATURE FILM?
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The character of the feisty Scottish princess, Merida, in the new Pixar movie, Brave, is causing a stir among the chatterati in America. Is she really a gender mouldbreaker or is she simply a refreshing change from the saccharin-sweet stereotype of a cartoon princess? See Page 57
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I've often stood silent at a party for hours listening to my movie idols turn into dull and little people. Marilyn Monroe SPECTRUM
PRIZE QUIZZES
Take a break with our prize quizzes – the crossword, the picture board and sudoku. Meet the challenge and enter for cash prizes ranging from E30 to E50. See Page 60-61
july 2012
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GAME TIME with George Hamilton
Irish soccer licks its wounds after Euro 2012. Are there lessons to be learned or is qualification the most we can ever aspire to, asks George Hamilton. See Pages 58-59
ULTRA VIOLET with Stephen Malone
In this issue, Malone discovers a new candidate to take over as CEO in Barclays. He realises why RBS reminds him so much of a motley band of vigilantes. He finds out why Spain still has a soft spot for Anglo Irish Bank. And he offers an even stiffer challenge for the team behind the Large Hadron Collider now that the Higgs boson has been identified. See Page 62-63
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From Jack Flash to Jack Sparrow: Rolling Stones guitarist and vocalist, Keith Richards, performing with the Expensive Winos at the Aragone Ballroom in Chicago, Illinois in 1987 (Photo: Getty Images).
Previously unreleased interviews, articles and more published in new e-book anthology
company, the Interview People (www.theinterviewpeople.com). “It’s not only a journey through 50 years of the Rolling Stones,” says publisher Matthias Würfl, “but also the history and evolution of music, press and western society of the last half century” The author, Hanspeter Kuenzler, has interviewed top music stars including Paul McCartney, Ringo Starr, Tina Turner, Robert Plant, Mark Knopfler, Blur, Oasis and Radiohead. The recommended retail price for the e-book is $14.99 – but is likely to be available on Amazon for less. It is being published in both epub and mobi formats. So it can be downloaded to most popular tablet devices – including iPad and Kindle.
WIN AN E-BOOK
As a special treat for Spectrum readers, we have a copy of the e-book to give away. A download voucher will be sent to the sender of the first correct answer to the question below, drawn from our postbag on August 1:
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hrough their long and wild career, the Rolling Stones have made an indelible mark on popular culture; from epic albums to notoriously bad behaviour. Over their 50-year history, journalists have collected a treasure trove of material, but none more prolific than music journalist, Hanspeter Kuenzler. A new e-book, 50 Years: The Rolling Stones – Views from the Inside, Views from the Outside, is a massive two-part collection of the best journalistic material spanning the band’s career. It includes feature articles from Rolling Stone magazine Britain’s Daily Mail and Daily Express newspapers with everyone from girlfriends and wives to the band members, themselves. Much of the material in 50 Years: The Rolling Sones has previously been unavailable in the US and the e-book comes in at over 2000 pages with over 150 images. Available this month, Part 1 covers the first 25 years of the band, from their early days in the UK, their arrival in America as part of the “British Invasion,“ and their sell-out tours around the world. Never before has such a landmark collection been available to the public and at a time when both music historians and music lovers are turning their attention to the "world’s greatest rock band.“ The book is being published by the eBook People (www.the ebookpeople.com) which is a new venture from the international interview syndication
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Which founder member of the Rolling Stones died in 1969?
Answers on a postcard, please, to Spectrum, IBOA The Finance Union, IBOA House, Stephen Street Upper, Dublin 8 or by e-mail to spectrum@iboa.ie 50 Years: The Rolling Stones Views from the Inside, Views from the Outside. (Part 1) by Hanspeter Künzler is published by the eBook People (www.theebookpeople.com)
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CINEMATIX Katy Perry: Part of Me
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lthough they are now a few centuries past their political prime, princesses still seem to exert an almost inexplicable fascination in popular culture – with a global television audience of 300 million said to have watched Catherine Middleton marry Prince William in Britain last year. Disney’s princesses have traditionally been sweet and at times simpering souls – looking to a future in the embrace of a heroic prince after rescuing her from a life of hardship/ drudgery/comatose sleep. The mould began to crack with Mulan, the Chinese warrior maiden – although the suspicion remains that Disney’s commitment to this project owed more to its commercial ambitions in
Merida is not the typical Disney princess – and what’s more she’s ginger!
China than any cultural or social considerations. Disney’s animation partner, Pixar – another of the large pies in which the late Steve Jobs had a finger – has gone one better in its new offering, Brave, which stars Merida, the flame-haired, bow-wielding teenager – whose singular lack of interest in the three princes seeking her hand has prompted debate in the US among people who ponder such things that she may be the first lesbian heroine in a mainstream animated feature! Voiced by Kelly (Boardwalk Empire) Macdonald, Merida is feisty and strong enough to defy King Fergus (Billy Connolly in fine form). Featuring the vocal talents of a host of Scottish actors, Brave is highly recommended.
Odeon Movie Club at Old Harcourt Street Station in Dublin
Watch classic movies on the big screen while you relax in big armchairs. During the film you can enjoy full waiting service for tasty food or simply sip away on a your favourite drink. Tasting plates sell for E6.00 – with cocktails from E5.00. There’s no cover charge and the movie club fills up fast so book early to make sure you get your seat. You can check out the club’s latest film listings on www.facebook.com/TheOdeon and call 01-4782088 or e-mail hello@odeon.ie for reservations.
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Some day my prince won’t come!
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Filmmakers, Dan Cutforth and Jane Lipsitz, follow Katy Perry during her year-long California Dreams tour. During 124 sold-out shows in arenas around the world, the constant camera presence creates both a front-row seat and a backstage pass as Perry performs for thousands of fans, then returns to the heightened reality of her everyday life. Interviews with family and friends add to the picture, as Perry gives her all onstage, then faces pressing challenges in her personal life.
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GAME TIME
After Poland-Ukraine...
Fresh Thinking Needed
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s it really better to travel in hope than to arrive? No doubt the fans who won themselves an award as the best at Euro 2012 were happy to arrive, experience, and then depart, all hope extinguished. Sure, isn’t it part of what we are?
The end justified the means. That was the motto, the mantra, as qualification was celebrated. And we did travel in hope. For the first time since 2002. That brave generation, two of whose number had smashed records in the course of a barren decade – Shay Given for international appearances, Robbie Keane for international goals, now had the opportunity to crown distinguished careers performing among the elite. Damien Duff would be there too, another veteran of the Far East trip, and Richard Dunne who’d travelled then but hadn’t made it off the bench. John O’Shea, the only other in the squad who’d already been capped at the time of the 2002 World Cup, was another whose time had surely come. The elite, the backbone of the team, alongside newer talents like McGeady and Doyle, not to mention Whelan and Andrews, who amassed experience amounting to 165 caps between them when the Poland/Ukraine Finals rolled around.
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How cruelly were the shortcomings exposed. How cruel too that Damien Duff’s 100th cap, not to mention McGeady’s and Doyle’s 50th, should have taken place against such a backdrop of disappointment. Ireland’s three performances amounted to a catalogue of failure that is equal to the worst there’s ever been in European Finals. At a month’s remove, it’s no less difficult to acknowledge the chasm that exists between what the Irish team was able to offer and what counted as the going rate at the Euros. Sure, Holland, too, departed without a single point. Was their failure not more abject?
DIFFERENT CLASS: Ireland’s centre back, Seán St. Ledger, attempts to tackle Andres Iniesta of Spain in the Euro 2012 group game in Gdansk, Poland last month (Photo: INPHO/Donall Farmer).
To the extent that theirs was a team blessed with outstanding talent, the answer is undoubtedly yes. But then their chequered history suggests that for every up, there will be a down. Our past hinted at a glorious challenge, eve though ultimate disappointment would be inevitable. There is the key. This was not ultimate disappointment. This was disappointment from the third minute of the opening half of the opening game. And the third minute of its second half. A pattern repeated with an eerie exactness when the team took to the field for its second fixture.
10% discount for IBOA members on trips to major sporting events in Britain, Scotland and Spain – as well as other holiday attractions in Britain.
For more information phone 00-353-1-6292000 or 00-353-21-4377501, e-mail: info@celtichorizontours.com or visit our website at
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tainment, and that Plan B consisted of a bizarre exercise in dice throwing rather than any radical refreshment of the playing personnel. In other words, those in charge figured that damage limitation was as good as it got. Where was the fire breathed by Charlton’s teams? Where was the fighting spirit McCarthy instilled after the Keane fiasco in Saipan? Ireland went out of that World Cup on penalties having scored the only goal conceded by the beaten finalists Germany on their way to the decider. But even more depressing than the defeats in Euro 2012 is the fact that nothing so far
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suggests a major rethink is in the offing. There’s one friendly before the World Cup campaign begins, away to Serbia in midAugust. Then it gets serious in Kazakhstan. Germany and Sweden are in the group as well. It’s easy to take comfort in the fact that both Euro finalists – as in 1988 – came from Ireland’s group. It was a tough one, and we’ve got to acknowledge that. But in 1988, Ireland drew with the Soviet Union, the beaten finalists, and only lost to the Dutch, the eventual winners, when they got a lucky late goal. In 2012, however, Ireland was a long, long way back when the chequered flag was waved. But is the summer a totally lost cause? The Olympics offer an opportunity of redemption. For spirit lifting, we need look no further than Katie Taylor. Patiently, painstakingly, she has pursued excellence since she was a teenager, collecting the European and World medals our footballers must dream of, over a dozen golds. Now, she’s on the brink of wrapping up the full set, an Irish woman who almost by her own efforts has blasted her sport on to the Olympic schedule. We yearned for so much from Poland. We left frustrated, but unbowed. Now London’s calling. This may yet be a golden summer.
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DIFFERENT CLASS: Ireland’s Katie Taylor (red) on her way to victory against Sofya Ochigava of Russia in the 60kg lightweight final at the World Women’s Boxing Championships held in the Olympic Stadium in Qinhuangdao, China in May (Photo: INPHO/China FotoPress).
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My first night out after returning from eastern Europe was a visit to Belfast’s Lyric Theatre for a stunning production of Oscar Wilde’s comedy, The Importance of Being Earnest. And as I laughed at the play’s memorable punchline, I couldn’t help thinking of Poznan and Gdansk. To lose one early goal may be unlucky, to lose two looks like carelessness. But three and four? I’m left wondering if the aim was in fact the qualification. That simply getting there was as far as it was going to go. It seems that the limit of the side’s ambition – as dictated by the tactics imposed – was to be con-
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WITH GEORGE HAMILTON
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WIN E50
PRIZE CROSSWORD Across:
1. City in South-East Asia (9) 6. Hurl (5) 9. Spanish friend (5) 10. Universal language (9) 11. Practising (10) 12. Mark of old wound (4) 14. Devotee (7) 15. Set in motion (5,2) 17. Coffee maker (7) 19. Long journey (7) 20. Ballet dress (4) 22. Lacking decorum (10) 25. Evaluation (9) 26. Fear (5) 27. Surpass (5) 28. Breathed in (9)
Down:
1. Ringo (5) 2. One who lives near (9) 3. Terminal global conflagration (10) 4. Supervise (7) 5. Uses up (7) 6. Kind (4) 7. Style of Greek architecture (5) 8. Academic subject (9) 13. One caring for infant (10) 14. Judge (9) 16. Will (9) 18. Loss of memory (7) 19. Cover partly º(7) 21. Subject (5) 23. Finished (5) 24. Post (4)
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The winning entry for the prize crossword competition in the last issue was submitted by Michael Power of Waterford City.
A prize of E50 will be given to the sender of the first correct entry drawn from our post bag on September 1, 2012. Entries should be sent to Crossword, Spectrum, IBOA – The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. A photocopy of the grid is acceptable if you prefer not to cut up the magazine.
Across: 1. Jerusalem; 6. Bible; 9. Navel; 10. Velodrome; 11. Heartbreak; 12. Snag; 14. Quintet; 15. Disdain; 17. Engross; 19. Academy; 20. Ulna; 22. Breakaways; 25. Overboard; 26. India; 27. Sleet; 28. Menagerie. Down: 1. Jonah; 2. Revealing; 3. Salutation; 4. Leveret; 5. Mallard; 6. Bide; 7. Brown; 8. Emergency; 13. Escalating; 14. Querulous; 16. Alexander; 18. Sarcasm; 19. Abandon; 21. Niece; 23. Snare; 24. Abet.
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A prize of E50 will be awarded to the first entry drawn from our post bag after the closing date.
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10% discount on any mobile phone* or mobile accessory for IBOA members in the Republic of Ireland. *except the Apple i-Phone
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PICTURE BOARD
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Use the first letter of the surnames of each of the celebrities pictured to spell out the name of an international pop star. Answers on a post card, please, with your name, address and e-mail address and IBOA membership number to Picture Board, Spectrum, IBOA House, Stephen Street Upper, Dublin 8. A prize of E30 will be awarded to the sender of the first correct entry drawn from our post bag on September 1, 2012. The winner of the last Picture Board quiz was Noel Cassidy of Salthill, Co. Galway. The answer was Madonna
WIN E30
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warded to the sender of the first correct entry drawn from our post bag on September 1, 2012. All entries should be sent to Sudoku, Spectrum, IBOA – The Finance Union, IBOA House, Stephen Street Upper, Dublin 8. You can submit your entry on a photocopy of the grid – if you would prefer not to cut up the magazine. The winning entry for the Sudoku Challenge in the last issue was submitted by Paul Gibson of Banbridge, Co. Down.
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ULTRA VIOLET
Big deal is no big deal! D
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id you hear the one about the Chinese rice trader who claimed to have bought a US bank for a bargain price? Lin Chunping became a celebrity in China when it was reported in January that he had acquired the Atlantic Bankin Delaware for $60m after spending two years in negotiations to buy the bank which had filed for bankruptcy in 2008 as the financial crisis began to bite.
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To add colour to the story, Lin told journalists that the US bank had been in operation for 85 years under Jewish management, whose business skills are stereotypically highly regarded by many Chinese. News of the acquisition led to a major political appointment in his local area in recognition of his “legendary” business expertise – which, of course, is precisely what it proved to be – in the sense that it was entirely mythical. When Chinese journalists checked into the story, they found that not only did he not buy Atlantic Bank in Delaware – but that there was no Atlantic Bank in Delaware. The 41-year-old is now under arrest for an unrelated fraud and has been forced to give up his municipal-level appointment to the Chinese People’s Political Consultative Conference, the government’s top advisory body. When his banking fantasy was exposed, Lin said he had ‘exaggerated’ in order to raise his social status and to secure future opportunities in banking. With an approach like that he could well have a future as the Chief Executive of a major financial institution in the West. Has anyone alerted Marcus Agius?
Head Hunter: Marcus Agius of Barclays
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with STEPHEN MALONE
Spanish Government appoints one-time backers of Anglo Irish to audit its banking system
by enhancing transparency and easing doubts about the value of bank shares in Spain. BlackRock – which had carried out the exhaustive stress tests of the Irish banking system in 2011 – was apparently passed over for the Spanish contract. However, it remains to be seen if investors will share the Spanish Government’s respect for Oliver Wyman’s views after its untimely endorsement of one of the most toxic banks in history. Oliver Wyman’s lack of transparency in the auditing of its own accounts, has also been flagged by rival consultancy, Deloitte’s. Roland Berger, on the other hand, is reported to be in preliminary talks with the German stock exchange, Deutsche Börse, about setting up a new European ratings agency to be based in Frankfurt.
Hadron Collider team rejects RBS request?
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No longer an Anglophile?: Oliver Wyman’s Chief Executive, John Drzik
There is no truth in the rumour that, following the discovery of the elusive Higgs boson – commonly known as the ‘God particle,’ the team behind the Large Hadron Collider at CERN in Switzerland has rejected a request to take on a truly impossible challenge – to find the cause of the ‘glitch’ in the RBS computer – commonly known as the ‘Sod particle’!
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t is heartening to see that the new Spanish Government does not bear grudges. Some might consider that a firm of consultants which described Anglo Irish Bank as a ‘model’ just two years before it collapsed – with devastating results for both the Irish and European banking systems – would be so reputationally damaged that it might never secure another contract. But not the magnanimous Spanish! The Spanish Economic Ministry was clearly willing to forgive and forget this unfortunate mistake when it decided to appoint US company, Oliver Wyman, and Roland Berger Strategy Consultants from Germany to audit Spain’s banks. The two consultancies were selected to provide an independent assessment of Spain’s banking sector as part of the ministry’s attempt to boost investor confidence
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‘Unlucky’ consultants given second chance in Spain
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