600 jobs in NI ‘at stake’ as Ulster Bank withdraws from Republic of Ireland, union says

The bank is understood to be one of the three largest banks in the south, prompting concerns about the impact on the wider economy and about maintaining adequate market competition in the interests of customers.

The general secretary of the Financial Services Union (FSU) John O’Connell called on Ulster Bank to give assurances that jobs would transfer to new owners along with loans and work.

“This is a very bad morning for Ulster Bank staff,” he told RTE. “There were 2,800 jobs in the Republic and 600 further jobs in Northern Ireland at stake,” he said.

Protecting those jobs must be a priority for Nat West, for potential buyers and the Minister for Finance, he urged.

Ulster Bank’s chief executive in the Republic, Jane Howard, said that no branches will be closing this year.

“There’s never a good time to deliver news like this and I understand that it’s extremely disappointing news for both customers and colleagues,” she told RTE Morning Ireland.

“But now that the decision has been made, my focus and our focus will be on making sure that we complete this phased withdrawal over a number of years, in an orderly fashion, so that we do a good job for both customers and colleagues.

“What’s really important for today is there is no change right now, we’re continuing to offer a banking service, and no branches will be closing this year. (Customers) don’t need to take any action and we’ll be starting to communicate with our customers today.”

Sinéad McLaughlin MLA , the SDLP’s spokesperson on the economy said the announcement was “expected, but is still very disappointing”.

She added: “It is at least good news that Ulster Bank will continue to operate in the North. It had been reported that the operations of the whole of Ulster Bank were being reviewed.

“I have been frustrated over recent months that Ulster Bank declined to meet me to discuss its future plans for both the South and the North. I requested a meeting to urge it to continue trading in both the North and the South, avoid job losses and not close branches. I did meet with the Financial Services Union and supported their calls to avoid job losses.

“Ulster Bank is one of the largest and most important banks in both markets in the North and the South. Its withdrawal from the market in the South creates a very difficult situation for consumers and businesses, significantly undermining market competition.

“Ulster Bank is one of only three major banks that operates on a retail basis in both the North and the South, providing all-island, dual currency banking. Given the growing importance of the all-island economy following Brexit, the withdrawal of Ulster Bank from banking markets in the South is particularly harmful and badly timed.

“It is essential that the Central Bank of Ireland ensures that Ulster Bank withdraws in a managed way that protects banking competition.”

She added: “The closure of Ulster Bank’s operations in the South is not only seriously damaging to the interests of consumers and businesses across Ireland, but it is also a grievous blow to its workforce.”

She said that thousands of jobs across the island are dependent upon the bank.

Sinn Féin MLA Caoimhe Archibald said Ulster Bank must engage with workers and their representatives.

The party’s economy spokesperson said: “This is undoubtedly a huge blow for workers, communities, mortgage holders and small businesses in the south.

“While Ulster Bank in the north is a separate entity and this withdrawal doesn’t affect its banking operation here, there are around 600 workers based in Belfast who service Ulster bank’s southern operations and it is vital all efforts are made to protect jobs.

“Ulster Bank must communicate with workers and their representatives at all stages throughout the process that will now take place.

“There is also a need for the government in the south to use its influence in pillar banks and Permanent TSB to minimise the damage and provide security to mortgage holders, businesses and customers.”

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