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Why are AIB using Taxapyers money to fund pensions and redundancies?


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Stephen Donnelly TD rightly raises this issue.


http://www.google.ie/url?sa=t&rct=j&q=&esrc=s&frm=1&source=web&cd=2&cad=rja&sqi=2&ved=0CC8QFjAB&url=http://www.independent.ie/opinion/analysis/stephen-donnelly-its-time-to-shout-stop-over-this-economic-lunacy-3311986.html&ei=rerBUMvKKtSGhQefk4HABw&usg=AFQjCNHvnVvYIEU_6gJq9HjSMfhjqU1dNg

From the article:
'' And there's more. To the €5bn, let's add the €1.1bn that AIB used to top up its pension fund. This €1.1bn is our money, after all. And according to the Taoiseach, it's being used to ensure that the 2,500 planned redundancies at the bank can be voluntary.

Why? It's a failed bank. And in failed companies, people lose their jobs. Harsh, but do you see the Government topping up the pension funds of other companies with your money?''


Little or nothing from any other politician, social commentator or strangely enough ICTU!

Surely David Begg or Jack O'Connor must have an opinion on this?
 

meriwether

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If you sack people, you have a statutory obligation to pay them redundancy, do you not?

Am I to understand that AIB would not have a statutory obligation to pay redundancy to these employees Donnelly wants to be sacked?

He does know that if an employer cannot pay wages, holiday pay and redundancy owing, it falls to the state to give them statutory entitlements?

Money put forward to redundancies is a legitimate expense - it is to pay mopney now to (hopefully) save money in the future from lower labour costs.

I'm unsure of what Donnelly's poitn is, unless its that the bank should sack workers, and refuse to pay them reduncany entitlements.
 

bonkers

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AIB staff are not getting statutory redundancies. This money was also used to top up the pensions of senior staff. It's an absolute disgrace. The workers in Waterford glass were left out to dry. I'm sure the FG bots will be along to derail and defend this.
 

meriwether

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AIB staff are not getting statutory redundancies. This money was also used to top up the pensions of senior staff. It's an absolute disgrace. The workers in Waterford glass were left out to dry. I'm sure the FG bots will be along to derail and defend this.
Are you saying they are getting more, or less?
 

Analyzer

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Because they are in with the government.

Ruairi Quinn (Looper Family Franchise party) and Lochlainn Quinn (ex-Chairman of AIB) are brothers.

Then we have the love between Suds and the blueshirts.
 

Crazy horse 6

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Because they are the banks and when you let them do as they please (as the present government have) they will just continue on as normal. Suck it up people you voted this government in.
 

Crazy horse 6

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AIB staff are not getting statutory redundancies. This money was also used to top up the pensions of senior staff. It's an absolute disgrace. The workers in Waterford glass were left out to dry. I'm sure the FG bots will be along to derail and defend this.
They are on the phone to HQ as we speak.
 

meriwether

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And the only statutory obligation due is statutory redundancy.


Statutory redundancy is what people normally receive in a company which is broke.
Outstanding wages and holiday pay are also statutory entitlements, taxed at the top rate, IIRC.

We need to define 'broke'.

No, really, we do. If AIB was broke, it would be broke. It is not broke. It is solvent, based on state intervention (but would be broke without it).

It is not uncommon for investors in, or acquirers of, companies to then make people redundant post transaction. If you are telling me that in every sinlge case, these people are let go with statutory minimum only, I would love to see your back up for this.
 

Absurdo

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Also it looks like BoI got jealous of AIB

The last set of accounts whizzed up the pension liability due to a change in accounting procedures.

Watch out for BoI pulling the same stunt shortly (if they haven't done so already)
 
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