Irish banks have been criticised for threatening to increase domestic bank charges as a result of the introduction of the euro. The banks made the threat in light of European Commission calls for regularisation of ATM and transfer fees across the euro zone.
The European Commission argues that, in a single market with a single currency, the cost of getting money out of a cash machine, or of making a transfer between banks, should be the same in any country in the euro zone.
It also argues that, when travelling abroad, the cost of taking cash out of an ATM machine should be the same in other euro zone states as it is in the consumer's home state.
But the banks have been slow to change, so slow that the commission introduced a law to force them to cut their charges by January 1 - the day Euro notes and coins start to circulate.
But six member states, including Ireland, argued against the plan. The Government has been resisting the Commission's calls to force banks to cut their charges, after the Banks said they would consider raising domestic bank charges or scrapping cross-border payments altogether.
A commission survey of bank transfer charges found Ireland already had the second highest charges in the euro zone, some 44% above the average. Sending €100 from Ireland to other euro zone states cost an average of €25, compared to a euro zone average of €17.5.
Labour MEP Prionsisas de Rossa criticised the Irish Banking Federation, saying that if they withdrew their services in an open market, somebody else would step in to serve consumers.
Governments finally agreed to a compromise law that will see charges for withdrawing money from ATMs equalised from July next year, while cross border bank transfers will be charged at domestic transfer rates from July 2003.
An industrial tribunal has recommended that bank staff at AIB receive a once-off bonus payment and an increase in overtime rates for the euro changeover period. The Tribunal made the recommendation, having assessed a claim by the Irish Bank Officials Association.
The industry tribunal recommended that AIB staff involved in the euro changeover receive a once-off payment of up to £750 and a 30% increase on their normal overtime allowance for extra work done from 27 December to 7 January.
AIB have agreed to meet the payments outlined by the tribunal. The IBOA has yet to issue a recommendation to its members, and a ballot is expected next week.
The IBOA has lodged similar claims on behalf of their members with Bank of Ireland, Ulster Bank, and NIB, which will be adjudicated over the next few days.
Brendan McGinty of the employers group, IBEC, says it is incredible that workers are to be compensated for doing their jobs. But the IBOA says the other banks should follow suit and pay extra for the euro.
The President of the Labour Party has criticised Irish banks over their objection to the introduction of standard bank charges in the euro zone. Proinsias de Rossa cited a survey of ten countries in the euro zone, which reported that Irish banks imposed the second highest level of charges for payments to and from other countries in the zone.
