Banking unions and financial services group ING have agreed to extend the current pay and conditions agreement until the end of 2011, news agency ANP reports.

The original deal ran until April 2010. The new agreement means wages will rise 1% for permanent staff on January 1, 2010 and a further 1% in September 2011.
But unions and the bank have agreed to lower performance-related bonuses by 2 percentage points – or between 6% and 14% of salary – depending on the pay scale. The two sides have also agreed to discuss top level pay in the autumn.
‘This new deal is an important signal to society,’ Ike Wiersinga of the CNV banking union told news agency ANP. ‘We have opted for moderation because we realise the situation facing ING demands it, thanks to the economic crisis and the state support.’