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BOSI warns staff - no redundancy if you reject moving

WORKERS at Bank of Scotland (Ireland) who turn down an offer to move to Britain or take up a position in the new independent services company face being laid off without redundancy pay.

Last week, parent Lloyds Banking Group made the shock announcement to withdraw from the Irish market and said that 36 staff would be made redundant.

A new services company would take over the operation of the wind down of Bank of Scotland (Ireland) operations here and 850 would be transferred to this firm.

But in the "draft terms" for the merger between BOSI and Bank of Scotland plc, it is revealed that some BOSI staff will be transferred to an IT service provider called the "independent service company", known only as ServCo.

But the bank has outlined the "likely repercussions of the merger on employment" within the document and stated that all workers whose functions are transferring to the new companies will be automatically moved across.

But it says that the remaining workers will either be "made redundant by BOSI no later than immediately before the merger becomes effective", or be given a choice between working for Bank of Scotland in Britain or moving to new roles in ServCo.

"Some employees of BOSI who are not ServCo employees or IT employees will be invited to apply for employment with ServCo to carry out new functions to those currently being carried out by those employees," the document says.

"Any of those employees who do not wish to transfer to BOS and have declined alternative employment with ServCo will be considered to have declined suitable alternative employment and will be considered as disentitled to any redundancy payment."

Last week it was revealed that staff were pressing for a large shareholding in the entity which has been tasked with managing the wind-down of its €33bn loan book in the coming years.

It is understood the bank's management team here has submitted a proposal to Lloyds to set up an entity to manage the wind-down.

But other parties are believed to be considering making an offer to take over BOSI's entire Irish business as a functioning bank, but sources yesterday stressed that there was no question of such a deal happening.