Bailed-out Irish banks ordered to cut staff salaries

13 March 2013

Irish banks that received state-funded bailouts at the height of the global economic crisis have been ordered to reduce their pay bills by up to ten per cent.

Michael Noonan, finance minister in the eurozone member state, has instructed the institutions that were aided by taxpayer money - Bank of Ireland, Permanent TSB and Allied Irish banks - to make provisions to cut their payroll and pension benefits sooner rather than later.

This order came after consultancy firm Mercer published a report, in which it emerged that members of staff at the former Anglo Irish Bank enjoyed a remuneration rise of one per cent over the last four years, despite the ongoing tough operating environment.

Even though salaries at other lenders had declined over the same time period, Mr Noonan said the review clearly shows that, being as these companies are "still incurring losses", more drastic action is needed.

"This is essential if they are to return to profitability, be in a position to support the economy and repay the state's investment through a return to private ownership," he noted.

By Gary Cooper

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