Brexit could boost Irish bank wages

AIB issues a warning to the Department of Finance...

Brexit could boost Irish bank wages

Image: Photocall Ireland

The Chairman of AIB, Richard Pym, has warned Finance Minister, Michael Noonan that the bank may experience staffing problems if the ongoing Government-imposed pay caps on senior executives and management remain in place.

The warning, secured through a Freedom of Information request by Sinn Fein spokesman, Pearse Doherty, was delivered at a meeting between AIB, the minister and his officials last November and was given in the context of the possible post-Brexit arrival of UK banks to Ireland which would not be subject to such constraints.

A movement of financial institutions from the UK to Ireland could be one of the few positive economic impacts that Brexit will have on the Irish economy.

Meanwhile, the vast bulk of employees at AIB have voted to accept an average 2.75% pay increase for each of the next two years, commencing April 1st, in a deal brokered by the bank and the Financial Services Union at the WRC.

The value of the Irish State's stake in AIB has fallen by €900m - it was worth €11.3bn at the end of December according to the Ireland Strategic Investment Fund's quarterly report.

The Department of Finance says that this fluctuation will not affect the Government's plans to sell some 25% of its 99% holding.

It has been preparing for the offering for some time and it could happen as soon as May of this year.

Prior to last year's General Election, Finance Minister Michael Noonan said he was ready to trigger an IPO if Fine Gael returned to power.