Industrial unrest could be brewing at EBS Building Society as Unite, the union, prepares to confront management over "breaches" in commitments it says senior managers made to consult with employees before "significant changes to operations".

The union is so far threatening to put forward a motion of no confidence in the EBS HR function at its annual general meeting, which is scheduled for 2 July.

The dispute has emerged as EBS prepares to withdraw from the commercial loan market, a move which could threaten up to 42 jobs at the mutual. EBS announced two weeks ago that it would be letting go 25 staff from other parts of the organisation, as well.

According to a memo sent by a Unite official to EBS director of communication Dave Keenan, who has been party to discussions with the union alongside chief executive Fergus Murphy, the freeze on commercial lending came as a complete surprise to union members "notwithstanding the fact that less than 24 hours earlier [they] had attended a meeting with EBS HR management".

At that meeting, union representatives had already been surprised to be told that a cost cutting review process by external consultant, which had been announced just a week before, was underway, but that no details about its scope were available. Unite said it was "very dissatisfied" with the lack of information.

Cost cutting has been a contentious issue at EBS for some time.

Newly re-instated director Ethna Tinney has long claimed that the building society had let costs run out of control to the detriment of members and has threatened to push for demutualisation if management fails to get costs under control.

Last week Tinney revealed she had commissioned an independent audit of the building society's business back to 2000 to get a better handle on where the money has been going.