NAG job cuts could impact on Northern Ireland

Northern Irish banking staff could be hit by the latest round of redundancies in the National Australia Group (NAG) restructuring programme.

The Northern Bank is one of four banks in the UK that could be affected as NAG seeks to reduce costs by $370 million by September 2004. It has been reported that up to 500 jobs could be shed as the group attempts to cut costs and there may be a headcount loss of up to 3,400 throughout the group's operations. However, that figure will be offset in Europe with the announcement that jobs will be created in the region to the tune of 300 posts. On a worldwide basis, NAG will create 1,380 posts.

The Irish Bank Officials' Association (IBOA) have stated that they will oppose any compulsory redundancies and called on the management of the Northern Bank to give them reassurances that jobs will be secured in Ireland.

"IBOA has sought and been refused guarantees on job security for staff," said John O'Connell, IBOA Assistant General Secretary.

"IBOA is seeking a clear and comprehensive statement from management in Northern Bank, guaranteeing staff their jobs and a commitment to dealing with change in consultation with the recognised trade union."

Mr O'Connell went on to criticise senior management for not better protecting their employees.

"The strategy would not have been initiated had it not been for the banks mismanagement in its American operation resulting in a $4 billion loss … no one in senior management has taken responsibility. It is a disgrace that 500 bank staff in Europe and 3,500 worldwide have to lose their jobs in order to save the chief executives. Mr Cicutto [NAG managing director] should now show leadership and resign," he said.

Besides the job losses, Mr O'Connell claimed that the NAG restructuring programme – the third in three years – would also lead to a 13 per cent reduction of front office services.

However, Steve Targett, European CEO for National Australia, defended the move as essential to the repositioning of the company and to allow "clear accountability, greater customer focus, simpler reporting and reduced bureaucracy".

NAG has a presence in 15 countries and results for last year saw total balance sheet assets of $375 billion with more than 8.2 million banking customers and 2.8 million wealth management clients on their books.

The banks owned by the NAG in the British Isles are the Northern, National Irish, Clydesdale, and the Yorkshire banks.

(GMcG)