EUROPE'S railways "must either change or die", the Minister for Transport, Energy and Communications, Mr Lowry, has warned.
He said unions and managements had to accept "the reality of the market place in which rail companies must, whether they like it or not, compete".
He was speaking yesterday in Luxembourg as chairman of the EU Transport Minister Council at the launch of the White Paper prepared by the Transport Commissioner, Mr Neil Kinnock. However, he was clearly including CIE in his audience.
Earlier yesterday, the CIE group of unions was told by Iarnrod Eireann management that cuts of £30 million and a reduction of 800 jobs would be needed to make the company competitive.
After the meeting, Mr Tony Tobin, of SIPTU, criticised the company for not consulting unions about the proposed cuts until after informing all its workers. The company seemed to be "undermining the unions".
The unions were prepared to do business on the viability plan, Mr Tobin said. "If the company is prepared to negotiate, that's fine. But we didn't get that feeling from them this morning."
The company wants to reduce staff by 198 in the mechanical engineering sector, 148 in the Intercity and suburban services, 114 in the clerical and administration area, and 182 in the freight sector. It also wants to close two freight lines; from Claremorris to Limerick and from Athenry to Tuam.
Net job losses will be around 400 after redeployment.
The most contentious issue is likely to be the removal of overtime and shift allowances - this could cost workers over £100 a week.
The changes being sought by Iarnrod Eireann are paralleled by proposals to cut costs by £6 million at Bus Eireann and £8 million at Dublin Bus. Already, strike ballots have begun and a major transport strike could begin within the next fortnight.
The SIPTU rail council is meeting tomorrow to discuss the situation and a general meeting of members will be held at Liberty Hall on Sunday morning.
Under the framework agreement dealing with disputes in Iarnrod Eireann, either side must give a month's notice of unilateral action. Mr Tobin said that Sunday's meeting may decide to ballot members for strike action.
The National Bus and Railworkers Union - it has the majority of locomotive drivers - is already balloting members for industrial action at Iarnrod Eireann.
Its general secretary, Mr Peter Bunting, said his members may be in dispute as early as October 14th over proposed changes at Bus Eireann. Members there also face the prospect of £100-a-week cuts in, pay and have already voted overwhelmingly for industrial action.
. Last night, NBRU members in Dublin Bus voted by 94 per cent to 6 per cent for industrial action over the £8 million cost-cutting plan proposed by CIE.