Irish Rail threatens to press ahead with pay cuts

Iarnród Éireann has said it will press ahead with implementing €4.7m in cuts to its pay bill unless talks with unions next week yield an agreement.

The rail company announced yesterday that “as a clear statement of its commitment”, chief executive David Franks and members of his senior management team were immediately implementing the cuts, recommended by the Labour Court, to their own terms and conditions of employment “including foregoing of basic pay”.

Members of both driver unions, Siptu and the National Bus and Rail Union (NBRU), voted to reject the court’s recommendation, with Siptu further balloting to begin industrial action if the terms were unilaterally imposed.

Yesterday, a company spokesman said: “The chief executive has invited the trade unions to enter into an intensive period of direct engagement with management for one week, to take place next week, to address the outcome of the ballots, as the company strives to make the critical savings required from payroll as outlined in the Labour Court recommendation.”

The company added: “Should next week’s engagement with trade unions fail to achieve progress, the company will then move to implement the Labour Court recommendation.”

In response, the NBRU general secretary Dermot O’Leary said it was “regrettable the company had decided to impose a precondition in advance of suggested discussions by indicating that they would implement the cost retrenchment measures without agreement”.