AIB can't manage their arrears by themselves?

znv6i3h7kqf9ys

I find it ridiculous that state owned bank AIB seem not to have the ability to manage their mortgage arrears book by themselves. They have hired contractors from a UK backed company called Certus (formally Bank of Scotland Ireland) at the expence of the Irish Tax payer to do this work. AIB employs over 10,000 people in this country and thousands are being made redundant very shortly. AIB bonuses seem to be a thing of the past but these rules do not apply to the contractors they hired, so the Irish tax payer could probably still be paying bank bonuses by proxy. With the number of employees they have it seems strange that they would take on more people to do work that they should be able to do themselves. Especially when the bank is state owned.....

From Jan
http://www.irishtimes.com/newspaper/finance/2012/0113/1224310193453.html

dotsman

It's politics man, fcukin politics...

To "punish the banks", the politicians forced them to sell off many of their profit-making subsidiaries (that could have, instead, been used to help support the banks return to profitability and repay the government investments). As a result, now that they are "smaller" banks, the politicians are demanding that they make large redundancies, despite the workload not really decreasing (and in many areas such as arrears management and IT - greatly increasing).

The key here is the term "headcount". The banks lay off their permanent staff, but replace them with more expensive temporary staff, thus the numbers of people directly employed by the bank (headcount) is decreased. The plan is that they can then let all the temporary (indirectly employed) people go in 2-3 years time when things go back to normal. One problem (especially in IT) is that the the massive wealth of experience and knowledge that has been lost and will be lost can never be replaced, so they depend even more on contractors and offsite outsourcing. Ulster Bank is a perfect example of this problem.

cazzak79

Am the area of arrears are very specialised and there is so many now
Thousands of people in arrears we also have end now also
As ur aware Aib are laying off 2500 workers temporary and contract workers wouldn't cost as much don't have to pay sick pay benefits etc

znv6i3h7kqf9ys

dotsman wrote: »

It's politics man, fcukin politics...


The key here is the term "headcount". The banks lay off their permanent staff, but replace them with more expensive temporary staff, One problem (especially in IT) is that the the massive wealth of experience and knowledge that has been lost and will be lost can never be replaced, so they depend even more on contractors and offsite outsourcing. Ulster Bank is a perfect example of this problem.

I understand the perception of reducing headcount is paramount but the reality is that it actually costs them more cash to finance this. (especially when the Irish tax payer is still indirectly paying bank bonuses). On the Ulster Bank Issue it was actually an Oracle database that crashed. This would take at least 3 days to reboot. Then every missed transaction needs to be entered manually. That's why it's taking so long when you consider they do about 1000 transactions per min. No issue there as the Irish tax payers money goes nowhere near Ulster Bank.