The Labour Court recommended changes to Irish Rail’s €20 million payroll reduction plan, including a 28-month limit on reduced gross pay arrangements and restoration of previous rates afterwards. The recommendation was signed on 11 April 2014.
The dispute involved Irish Rail and SIPTU, the NBRU, the TSSA, the TEEU and Unite. The unions said Irish Rail had not fully explored savings outside payroll and that workers would continue to cooperate with negotiated changes. Irish Rail said income had fallen sharply since 2008 and that pay and pensions accounted for 60% of its costs.
The Court cited accumulated losses of about €147.9 million from 2008 to 2013 and said two reports commissioned by the unions confirmed the company’s serious financial position. It considered the January 2014 proposals necessary to protect the company and jobs, while saying they could be modified.
The Court also recommended that Irish Rail make no further proposals to reduce pay or conditions during the 28 months, and that a cost management committee identify non-payroll savings. Any additional savings would shorten the period of reduced pay. It recommended enhanced exit terms for 73 employees who had applied for voluntary severance before the October 2012 deadline, matching terms received by 318 employees who had already left.