Irish Rail seeks to shed ‘minimum’ of 450 jobs

Irish Rail is to seek a minimum of 450 voluntary redundancies over the next four years as part of a bid to bridge a €43m deficit.

This week, the company agreed a €12m range of measures with its unions, including cuts to entitlements, pension arrangements, and reduced expenses rates.

This is on top of previous rounds of job cuts at the commercial semi-state company, which saw numbers employed fall from more than 6,000 to 4,100.

The confirmation by Irish Rail that at least 450 additional redundancies are being sought comes ahead of key cost reduction talks scheduled for Bus Éireann and Dublin Bus next week.

Irish Rail opened its latest redundancy drive in April. However, unlike previous rounds of cuts, the current scheme will target all staff rather than just the higher paid.

Irish Rail spokesman Barry Kenny said reducing the number of people employed by the company by a minimum of 450 over the next four years was part a wider drive to save money.

“[Unlike other redundancy offers] that were targeted more at older colleagues in the company, or that would have been restricted to certain grades, this time anybody who is interested can apply.”

Mr Kenny said the 450 figure was a “minimum type number” that was flagged with trade unions during negotiations on a separate €12m cost-saving plan. Staff will be balloted on the proposal on June 20 and the company hopes to implement the changes, if accepted, on July 9.

This seeks to get €3.8m from revised pension arrangements, cut the entitlement to uncertified sick leave from seven days to four, and lower subsistence rates by a quarter.

Last year the company, in a cost-saving report delivered to the Department of Transport, said it planned to pay out €49m in voluntary redundancy deals over the next four years and this would reduce its payroll bill from €198.5m to €178.7m over the period.

In 2010, the company paid €22m in voluntary severance payments.

Mr Kenny said it had entered into negotiations with the Labour Relations Commission, working with staff to find savings without affecting basic pay. However, he said if Irish Rail’s financial situation deteriorated further, staff would have to be asked for additional sacrifices.