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KBC Bank Ireland has been criticized by the Labor Court for refusing to attend hearings aimed at addressing issues related to the organization’s layoff plans.
The dispute arose last September when KBC announced that it would close four branches or “hubs” at Dundrum in Dublin, Greystones in Wicklow and Naas in Co Kildare.
Their branch on Swords Main Street will also relocate to the nearby Pavilions Mall.
At the time, the bank said it had seen a change in customer banking behavior with an accelerating trend towards digital banking, which required changes to the core network.
The Financial Services Union said 50 people are directly affected by the closures, and up to 20 layoffs are being considered.
In the written recommendation by Labor Court President Kevin Foley, he noted that KBC chose not to attend the hearing “as is its right,” but had provided the court with a written statement that it had carefully noted.
However, it noted that the court was unable to collaborate with the employer to clarify or discuss any element of the issues discussed in it.
“The Court finds it regrettable that union-affiliated workers are not facilitated to engage as they wish with their employer through that union at a time when the future of their employment is threatened,” Foley wrote.
The Labor Court urged KBC to consider all possible means to reduce the possibility of compulsory dismissal, including the potential role of telecommuting as a strategy with respect to some roles.
“That consideration should be based on the knowledge gained in recent months as a result of the global pandemic,” Foley said.
He also highlighted a potential role for “employee-led” exchanges with “operational functionality” to improve the possibility of achieving voluntary layoffs.
The president of the Labor Court proposed a mechanism to facilitate exchanges between personnel willing to be fired voluntarily but whose functions were not threatened, and personnel who did not consent to voluntary dismissal, but whose functions were in jeopardy.
He cited union claims that such a mechanism has operated constructively in the sector on previous occasions, but warned: “Any such mechanism must be based on the operational suitability of the personnel involved in terms of the role they could perform.”
Regarding the termination conditions, Mr. Foley proposed an “adjustment” to the package offered to include two payment options of five weeks per year of service, including statutory entitlement, or payment of four weeks per year of service plus the statute, “whatever is most advantageous to the departing employee.”
The Court urged the parties to engage constructively in addressing issues raised by workers through their union and to commit to using the state’s dispute resolution framework as necessary.
The FSU, which had referred the matter to the Commission on Workplace Relations and the Labor Court, welcomed the recommendation.
FSU’s Head of Campaigns and Industrial Relations, Gareth Murphy, described it as “a complete vindication of the rights of KBC workers.”
He called on KBC to accept the Labor Court’s recommendation, saying the union remains available to meet with the bank at any time to work on possible solutions.
A response has been requested from KBC Bank Ireland, which is a unit of the Belgian bank and insurance company KBC Group.
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