Cost-cutting at Irish Rail ‘unavoidable’, Labour Court says

The Labour Court has said cost-cutting measures sought by management at Iarnrod Eireann are unavoidable if the future of the company is to be protected.

In a recommendation issued today however, it has modified proposals brokered at the Labout Relations Commission aimed at delivering savings.

The Labour Court said that proposed pay cuts for staff at the rail company should apply only for a 28-month period rather than 36 months as originally put forward.

It said after this period original pay levels must be restored.

The Court said that during the 28- month period when the pay cuts were in place, the company should be prevented for seeking any additional reductions in terms or conditions.

The Court also said a committee should be established to pursue non-payroll savings.

It said any cost reductions secured in this process should be used to reduce the impact on payroll.

The recommendation said the rail company had generated accumulated losses between 2008 and 2014 of just under €150 million.

Minister for Transport Leo Varadkar had ruled out the provision of additional State funding for the company.

The original proposals involved the introduction of graduated pay cuts of between 1.7 to 6.1 per cent aimed at generating savings of €20million.

Labour Court chairman Kevin Duffy said it had consistently pointed out it would only recommend retrenchment in established conditions of employment where on independently-verified evidence it was plainly and unambiguously necessary to do so in order to protect employment.

Iarnrod Eireann had argued that it had experienced a catastrophic fall in income since 2008 due to cuts in the Government’s subvention, rising fuel costs and declining passenger numbers.

Meanwhile, an expert panel set up by the Department of Transport to investigate a row over cuts to pensions at Aer Lingus and the Dublin Airport Authority (DAA) has said it will continue to engage with both parties and trade unions in an effort to resolve the dispute.

A court order prevented planned industrial action by union members at Aer Lingus and the DAA last month over the €780 million deficit in the Irish Airlines Superannuation Scheme, jointly operated by Aer Lingus and the DAA.

In an update to the Department, the panel said it will complete its investigation into issues relating to the implementation of the IASS in the coming weeks, and report back in early May.