BUS Éireann services in Clare and around the country are likely to cease on Sunday, due to a dispute regarding cost-saving measures.
The company plan to reduce overtime rates from 1.5 times to 1.25 times; reduce shift, premium and rota payments; cut allowances and expense payments by 33.3%; reduce annual leave and increase the working week for clerical and executive staff from 36 to 39 hours.
The measures are due to come into effect on Sunday but Dermot Healy, who represents the Mid-West Region on the national executive of the National Bus and Rail Union (NBRU) warned that if such a move is made, members will strike.
Speaking to The Clare Champion on Wednesday, Mr Healy warned, “All I can say to you at this stage is that if the company persists in putting through these pay cuts on Sunday, our members will not be at work.”
He said that at the moment there are no talks taking place to reach an agreement.
Mr Healy said Bus Éireann have not complied with proper procedures. “What management have done was send a letter to all staff on December 14 saying they would implement these cuts effective from January 13 but they did so without reaching any agreement with the union and they did so outside of the agreed procedures.”
Also on Wednesday, SIPTU members voted to take action, which would begin next Thursday. The Transport Salaried Staffs’ Association have also voted for industrial action.
A spokesman for Bus Éireann claimed the NBRU had failed to provide seven days’ notice of industrial action and said if there is industrial action at the weekend, it would be “unofficial and illegal”.
In a statement, Bus Éireann claimed unions hadn’t taken up a request for a Labour Court hearing. “As Bus Éireann outlined to its employees on December 14, the company intends to implement a number of changes to the terms and conditions of staff from January 13, 2013. This followed a decision in December by trade unions to reject a request from Bus Éireann to avail of a hearing in the Labour Court on the company’s cost recovery plan, which is required to get Bus Éireann back to profitability. The plan protects the core wages and jobs of staff, while reducing overtime, shift, premium and expense payments and annual leave, and increasing the working week.
“It is entirely a decision for the trade unions on whether they take industrial action in relation to these changes. However, any industrial action would be counter-productive for customers, staff and the company. All it would achieve would be to worsen our financial situation, which would then require us to seek even further savings in the area of terms and conditions.”
It also accused the unions of intransigence and said losses of over €300,000 a week have to be addressed. “For several months, the company engaged in talks with unions via the Labour Relations Commission positively and proactively but the trade unions made it clear they didn’t want to negotiate on changes to premium payments such as overtime and shift rates that would deliver the biggest savings under the plan. In December, they also rejected the opportunity to participate in a Labour Court hearing on these matters that had been requested by Bus Éireann.
“Bus Éireann has repeatedly stated since June 2012 that failure to agree to this plan will leave the company facing potential annual losses of €16m. This level of potential losses must be addressed in order to protect services and jobs and ensure the company can continue to invest in providing a quality service.