AIB has announced it will provide medical benefits to all employees in Ireland and Northern Ireland, becoming the first bank to do so.
The bank also said it plans to introduce a measured variable remuneration scheme, conditional on the achievement of various performance targets across the business.
Variable pay includes bonuses, stock, and other annual or short-term incentives.
The company said these new initiatives will help the bank retain and attract employees.
The bank announced that starting January 1, all employees will have access to a plan that includes a wide range of health benefits, as well as access to Vhi and Bupa treatment and treatment centres.
It also said that while variable pay in Irish banks remains capped by the government at a maximum of €20,000, AIB’s variable pay will be no more than 5% of an employee’s salary, up to a maximum of €12,700 per employee.
This payment is subject to the Group’s performance conditions being met, including the Group’s financial performance, customer satisfaction, green financing targets and gender balance in the workforce.
Meanwhile, AIB also reached an agreement with the Financial Services Union in November to pay out €1,000 vouchers to staff.
AIB’s chief people officer David McCormack said the health and wellbeing of the bank’s employees remained a key priority for the group.
“The introduction of healthcare is a very important step forward and a demonstration of our continued commitment to providing AIB with a supportive workplace,” he added.
Commenting on today’s announcement, FSU general secretary John O’Connell said the union had been campaigning hard for the introduction of a health insurance scheme and the restoration of variable pay for ordinary bank staff.
Mr O’Connell said: “This agreement is the culmination of a tremendous amount of work and is a reward for the professionalism and loyalty of our bank staff.”
He said rank-and-file bank employees, who are on the front lines of bringing about change in the banking sector, are suffering like everyone else due to significant increases in the cost of living and the austerity measures introduced after banks collapsed.
“The FSU campaigned for changes to austerity measures to reward ordinary bank staff. Changes made by the Chancellor of the Exchequer last year have made it possible to introduce these pay and benefits benefits,” he added.
He said the union wanted to make the retail banking sector attractive to new graduates and this was certainly a step in the right direction.
Billy Barrett, FSU’s senior industrial relations officer, said a typical banker with a starting salary of 30,000 euros could receive health insurance worth up to 1,450 euros and a variable salary of up to 1,500 euros.
“AIB is the first bank to introduce health insurance for its employees and this can be seen as a positive start, but FSU will monitor the two schemes over the coming months to see their effectiveness and see how “We will look at how we can improve this over the next few years,” Barrett added.
