Bank's IT staff land #960 Y2K shift deal

HSBC is the first high-street bank to finalise a millennium working package for IT staff - worth up to #960 for a night's work, writes Gavin Clarke.

Employees are expected to take home eight times their normal pay for a day's work under the special agreement.

The deal is double the millennium salary being offered to IT staff outside high street banking and raises doubts over the confidence banks have in their bug fixes.

HSBC group's direct banking arm First Direct has also finalised a deal, offering five times normal pay to IT staff, plus a #500 lump sum bonus payment.

Tom Bamber, associate director at City consultants CMG, branded the remuneration packages excessive.

'It sends out the wrong message. It says: "We are not confident in our year 2000 preparations, and we believe we have to pay staff exorbitantly",' said Bamber.

Paul Tierney, HSBC year 2000 programme manager, said the bank was on target to hit its 30 July completion deadline. Tierney refused to comment on details of the package, but called it adequate renumeration.

'We are fully confident our IT will work - you can write that in capital letters,' he said.

Chris Webster, Cap Gemini's director of year 2000 services, said banks had more at stake than other sectors. 'For many, IT is a support function, but for banking industry it is the core of their business'.

He added that some IT specialists are believed to be charging up to #10,000 to be on call during the millennium period.

HSBC IT staff working from 6pm on 31 December to 2pm on 1 January will qualify for the deal. Someone on the highest grade, #18,544 a year, with a weekday hourly rate of #10 an hour, will make #80 an hour. Working the maximum 12-hour shift will net them #960.

Bamber said year 2000 pay deals could spark short-term pay inflation in the City, as staff representatives and management continue negotiations over millennium packages. 'It does set a precedent and can be used in negotiations with the employer,' Bamber said.