Bank Job Losses Overshadow 500 New Posts

There's both good and not-so-good news on employment today as a major jobs boost has been announced by global financial services company, Citigroup.

However, between 220 and 230 jobs are to go at the Bank of Ireland's NI operation, a move that was revealed this morning around the same time as an announcement was being made on the new jobs.

First Minster Peter Robinson said the US-NI Economic Conference in Washington in October helped showcase Northern Ireland to potential investors: "While we are confident that new investment will be generated as a result of the conference in the months and years to come, this latest commitment by Citi is proof positive that our ongoing efforts to secure investment are paying dividends.

"Over £8m of Invest NI support has secured this expansion against competition from other global locations.

"This support will help to inject upwards of £16m of new annual salaries into the local economy, providing the quality, world class employment opportunities that local people so richly deserve," he said.

Also commenting, Deputy First Minister Martin McGuinness said: "At a time when global businesses are still trying to manage their way out of the downturn, Citi has recognised that this region offers the skills, infrastructure and support necessary to develop its presence here and support growth in key global markets.

"Over the next five years, Citi plans to create 440 new high quality roles in its technology and operations divisions and a further 61 new specialist posts in its legal and compliance division.

"This is an extremely significant boost for the local economy particularly in terms of job numbers and the high quality of the positions."

However, Bank of Ireland is pushing ahead with jobs cuts rumoured over the summer when it said it would be cutting its workforce in Northern Ireland, the Irish Republic and the Great Britain, by about 750 people.

However, the Irish Republic's biggest lender had said the cuts would be on a voluntary basis over a two-year period.

Now, it has been reported that bank staff have been called to an emergency meeting in Belfast this morning.

The bank has since announced the loss of 270 jobs in Northern Ireland and Great Britain as part of the restructuring plans announced by the bank in July.

Support activities from Belfast and London are to be consolidated to the Bank's existing operations in Dublin and Bristol.

The restructuring plan was approved the EU in July - a necessary step because of rules governing state aid to business.

The bank said the plan has subsequently been agreed with the main banking union, the IBOA.

It added that there would now be a 90-day consultation period with affected staff.

A spokesperson said it remained committed to Northern Ireland and would be opening a new branch at Donegall Square in the centre of Belfast.

"The Bank of Ireland is however committed to growing its business in Northern Ireland and supporting its customers through its extensive branch network and experienced customer service staff," said a statement.

(BMcC/KMcA)