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First Trust staff lobby council amid redundancy fears

Thursday, 15 July 2010

All 15 of Strabane's First Trust employees have lobbied councillors amid growing fears around forthcoming redundancies and a 'fire sale' of the bank's UK division.
Standing orders were suspended at last week's council meeting on the request of the council's chairperson, Michaela Boyle. Lodging the motion, she spoke of the council's 'deep concern' following AIB's April announcement "to sell off its six counties subsidiary 'First Trust', and the implications such a move would have for the employment security of its 1,500 employees" in Northern Ireland.
In a letter to the board of AIB (Allied Irish Bank) and the Republic's finance minister, Brian Lenihan, Strabane District Council will state its opposition to any such sale.
“Such a sale would be taking place at a time when international financial markets are in the doldrums and would almost inevitably result in a fire sale," warned Ms Boyle.
“[It] would be an invitation to an asset stripper with little or no commitment to First Trust's branch network, to its current level of employment or to the wider economy of Ireland north or south."
Letters
By the middle of last week, Ms Boyle had received letters from all 15 employees of Strabane's First Trust branch. They detail how redundancy would affect their own lives and that of their families, and the changes acquisition by an international buyer could bring for struggling small and medium business and bank employees.
One local employee, who has been working for the company for 28 years, said she faced the possibility of home repossession if First Trust's sale goes ahead.
“I am a single parent and whilst the two children, who still lives at home with me, are presently employed they are both on minimum wage and are still mainly dependant on me to ensure we have a basic standard of living," the employee wrote.
“Like most people nowadays, I am a house-owner with quite a considerable number of years left to pay on my mortgage and would be extremely fearful that should AIB proceed with [the] sale of First Trust Bank, job losses would be probable and this could ultimately result in my family and I losing our home."
That is a predicament faced by 1,500 people working in 48 First Trust branches across Northern Ireland, and their families.
The effects of a 'fire sale' to an international buyer will be felt across the business community for years to come, and weaken cross-border economy at a time when it is needed most, one local employee said.
‘Implications'
“Depending on the overall plans of any new owner, the proposed sale may also have implications for the availability of credit to small and medium enterprises in Northern Ireland. For example, a more remote parent institution may lack the sensitivity to local conditions needed to meet the specific needs of local businesses - with the result that the entire economy becomes impoverished.
“Although First Trust is fundamentally sound, it may not be sufficiently attractive to merit the interest of a significant player in the financial services sector in the current depressed financial climate. In such a situation there is a real danger that, if AIB pursues a "sell at all costs" approach, First Trust may be acquired in a "fire sale" by a company that lacks the necessary experience or commitment to maintain or develop the business into the future."
It is a time of great uncertainty for bank workers across the island, as employees of both First Trust and Bank of Ireland, which employs 1,100 people across Northern Ireland, wait to hear their fate. Bank of Ireland has refused to confirm if there will be any job losses across it branches, a line echoed by AIB last week.
“We signalled our intention to sell our UK division at the end of March and at this point we would not be commenting any further on the process," an AIB spokesperson said.
“We understand the concerns of staff but unfortunately we are not in a position to make any further comment."
Meanwhile, local bank workers are calling for "much further scrutiny" of the proposed sale "than it appears to have been given so far".
In the coming weeks, West Tyrone MP, Pat Doherty, will raise the issue with the First and Deputy First Ministers.
For Strabane District Council's chairperson, Michaela Boyle, the developments are deeply concerning for the area.
“An international company [if it were to buy First Trust] would not have the interests of the area and of jobs and the economy here," she said. "The implications that would have... It's a big issue for everybody."

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