Bank of Ireland staff have voted in favour of a new pay deal that will see their pay rise by 2.2pc in 2016 and a further 2.61pc in 2017.

The new deal was negotiated between senior management and the Irish Bank Officials’ Association (IBOA) with the assistance of independent mediator, Martin King.

Speaking about the pay increases IBOA general secretary, Larry Broderick, said that staff had to be rewarded for the bank’s return to profitability.

“At a time when Bank of Ireland is back into profitability, it is important that the key role played by staff in the success of the bank is recognised.

“This recommendation is significant in that it differentiates between the need to provide compensation for cost-of-living changes and to reward performance improvements,” Mr Broderick said.

The pay deal follows on from an agreement concluded at the end of 2014, which saw a new career and reward framework implemented in Bank of Ireland.

The IBOA also revealed that it has begun balloting its Ulster Bank members in both the Republic of Ireland and Northern Ireland over a deal that would see an average increase of 2pc for this year.

“There is a clear marker now for other employers – including the State-owned AIB and Permanent TSB – along with the Government and the Department of Finance – to recognise that their staff are entitled to reasonable pay increases for their substantial contribution to the recovery of the financial services sector after its near collapse in 2008 through mismanagement,” Mr Broderick said.

Online Editors