Business

Danske Bank staff to get 3.5 per cent pay increase in 2022

Danske Bank staff are to receive a 3.5 per cent pay increase from April 2022.

THE Financial Services Union (FSU) has said it has reached an agreement with Danske Bank on a 3.5 per cent pay increase for staff in 2022.

The union previously balloted members in 2020 on a three year pay deal, which guaranteed a 2.5 per cent increase in pay for 2022. That deal also secured agreement for no compulsory redundancies within the Northern Ireland organisation.

However, the FSU said negotiations restarted late last year on the back of the current cost of living crisis.

Following those talks, the bank and the Irish union settled on a 3.5 per cent pay rise from April.

Staff are also set to receive what the FSU described as “a once off non-consolidated cash payment" of £500, again, effective from April 1 2022.

It comes as Asda announced on Friday that around 3,000 staff across its 17 Northern Ireland stores will share in a £27.8 million bonus shared among 103,000 workers in February.

Asda said while it will depend on individual circumstances, the average bonus for full-time staff will be £413, while the average figure for all hourly-paid workers is £269.

Commenting on the Danske Bank pay deal, the FSU’s senior industrial relations officer, Mandy La Combre, said the union had argued for inflation proofed pay increases since its conference in Belfast last November.

“Pay increases play a significant role in protecting workers from rising costs of essential everyday items such as foods and home heating. We are set to face the toughest cost of living squeeze in many years as bills soar.

“This pay increase is also a recognition of the professional work carried out by our members during Covid in keeping branches open and providing a customer friendly service in difficult circumstances,” she added.

“We commend the bank for agreeing to revisit the previous agreement and for acknowledging that their staff deserved more”.

It comes less than two weeks after the FSU struck a 7.5 per cent pay deal with Bank of Ireland.

The increase, which rolls out in two tranches, will see staff take a four per cent pay increase in 2022, backdated to January 1, with a further 3.5 per cent rise taking effect from January 1 2023.

The Bank of Ireland said it will also increase its entry level salary in Northern Ireland by £1,000 to £18,500, while staff in the Republic joining the organisation will start on €26,500 (£22,144), an increase of €1,500.

The lender chief people officer, Matt Elliott, described it as the most significant pay award the Bank of Ireland has made in over a decade.

“Following the exceptional challenges of the last two years, we are pleased to be able to provide our colleagues with clarity on pay to the end of 2023,” he said.

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