Second group of AIB employees after bonuses


Another group of Allied Irish Bank (AIB) workers plan to file claims for bonus payments promised them by the Irish bank in 2008, but since deferred.

The group of workers are claiming for bonuses ranging from 3,000 euro to 38,000 euro with the Irish courts.

The workers are responding to the new Credit Institutions Stabilisation Act, which came into force this week, giving the Irish Minister for Finance Brian Lenihan the power to make the government's support for banks conditional on them not paying out bonuses.

The group of staff in AIB’s capital markets division are expected to file claims with the Irish Circuit Court for the payment of the deferred bonuses.

the move comes after the Finance minister Lenihan warned the bank not to go ahead with plans to pay 9.2 million euro in bonuses, as the government would not provide it with any further bailout funding.

AIB had agreed to pay the bonuses after John Foy, a capital markets trader, succeeded in getting a High Court judgement against the bank for his 161,000 bonus.

90 other AIB employees took a similar action and the bank believed it had no choice but to pay them. But after a public and political outcry the minister intervened and the bank said it would not pay out.

AIB was due to pay 58.7 euro million in bonuses in total, with some senior individuals receiving as much as 780,000 euro individually.

The Irish public is enraged by these moves since AIB is due to get over 13 billion from the Irish taxpayer and the State will end up owning over 90 percent of the bank.

However the anger is not exclusive to the Irish public. AIB's Capital Markets staff are said to be furious their overseas colleagues received their bonus payments, as did employees working for Irish competitors such as Bank of Ireland.


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