A CIE worker director has called for an emergency meeting of the board to discuss a proposed pay freeze for more than 10,000 company employees.
Mr Michael Faherty, a member of the National Bus and Rail Workers' Union, wrote to CIE's group chief director, Mr Michael McDonnell, yesterday demanding an urgent meeting of the board.
CIE management and union leaders have been invited to attend informal discussions at the Labour Relations Commission this morning to discuss the growing likelihood of industrial confrontation over the company's £44 million cost cutting viability plan.
On Wednesday, the unions were told by Dublin Bus that the latest phase of payment under the Programme for Competitiveness and Work, due on October 1st would not be paid until the unions agreed to accept its seetion of the viability plan. This involves cuts of £8 million.
Neither unions nor management in any of the CIE companies is likely to do anything that might escalate the dispute ahead of a High Court judgment on the legality of changes pioposed by management in Bus Eireann, as part of the overall viability plan.
In his letter to Mr McDonjiell, Mr Faherty expresses his annoyance at the manner in which managements in the three subsidiary companies are announcing their intention of linking the payment of the 2.5 per cent wage increase due from October 1st with their viability plan negotiations. Traditionally the payment or otherwise of successive wage increases were always subject to board approval."
Although there was a full board meeting two weeks ago, the issue of refusing to pay the 2.5 per cent increase was not discussed, nor did it arise at a board meeting of Dublin Bus on Wednesday, although managements told unions, the same day they would not be paying the 2.5 per cent.
In his Jetter to Mr McDonnell, Mr Faherty said: "I would remind you that when the board approved the current business plans, provisions were made for the payment of the full cost of the PCW."
He described staff morale as "rock bottom" because of the refusal of CIE managements to enter negotiations with the unions on the changes proposed in the viability plan.
Mr Faherty was not contactable yesterday, but the NBRU general secretary, Mr Peter Bunting, said the 2.5 per cent increase should be paid on time. "Staff and management made a commitment to abide by the terms of the PCW. I can't understand why the Irish Congress of Trade Unions is agreeing to negotiate a new agreement when the current one is being reneged upon by a semi state company.