Confrontation with unions likely as CIE plans to shed up to 800 jobs

MANAGEMENT and unions at CIE seemed set for confrontation last night following the announcement of plans yesterday to save £44 million at the group of companies over the next two years, with the loss of between 780 and 800 jobs.

Between them, the three CIE companies, Iarnrod Eireann, Bus Eireann and Dublin Bus, employ a total of 11,500.

Already, the cost cutting plans for Bus Eireann, which were due to come into effect from next Monday, may have to be put on hold due to union action. The National Bus and Rail Union to apply for a judicial review of the company's decision to implement changes "without the consent of the union".

And a spokesman for SIPTU, which represents "about 65 per cent" of all CIE workers, has said it is "seriously concerned" about the plans, which "will take away money from the workers to reinvest as capital". He also said the union received the Dublin Bus plan from the media yesterday afternoon and that it had seen the Iarnrod Eireann plans "last Thursday or Friday" for the first time.

If Bus Eireann wishes to oppose the reliefs sought by the NBRU they must file notice of opposition to the High Court before 10 a.m. next Monday. In a statement, the union said: "It is now and always has been the position of the NBRU that this matter can be restored by meaningful negotiations between the parties."

Yesterday, the Minister for Transport, Energy, and Communications, Mr Lowry, said it would be "entirely inappropriate" for him to intervene between the unions and CIE management. He had been requested to do so by the unions. Mr Lowry felt it was in the best interests of company and staff "that the necessary change be negotiated on a basis of partnership". He also made it clear the Government fully supported CIE's efforts to become more competitive, commercially focused and customer driven but stressed that "it must develop a new industrial relations culture based on partnership and co operation".

The chairman of the CIE board, Mr Brian Joyce, explained yesterday that savings of over £30 million would come from Iarnrod Eireann, £8 million from Dublin Bus, and £6 million from Bus Eireann. The reductions in the cost base had been made necessary by competition and deregulation.

He said borrowings at the group had reached £200 million by the end of last year, and it was "set down in stone" that it would borrow no more. The £250 million needed for reinvestment in the group would have to be financed by CIE itself, "which is where the £44 million comes in", he said. The amount of savings to be made was "not negotiable", though the manner in which the savings could be made would be. Any industrial action would do "immense damage" to the group, he said, and he hoped "common sense and reality" would prevail.