Analysis: Bus route tendering will go ahead but with new safeguards for workers

Under the new proposals to end the bus dispute the Government’s controversial plans to put out to tender some routes operated by State transport companies will go ahead.

However the full ultimate extent of this programme remains to be seen.

At the same time tougher new rules will be put in place to govern the operation of this new more liberalised bus market.

The new measures proposed are aimed at providing greater protections to workers and preventing what unions fear could be a race to the bottom in relation to staff terms and conditions.

The proposals build on the commitment given earlier this month by the Minister for Transport Paschal Donohoe that no Dublin Bus or Bus Éireann employee would be forced to move to a private bus company even if the State firms lost the right to operate any route.

The proposals also make use of planned new legislation to enhance the protections for workers.

The unions are still opposed to the principle of the Government’s plans but have secured sufficient safeguards to call off the planned strikes.

The Minster has insisted that he is not planning the privatisation of services.

His department and the National Transport Authority have argued that ownership of the routes will remain in the hands of the State and the plan is only to contract out the right to operate the routes for a fixed period.

Standards of services, frequencies and even the physical buses used to operate the routes would remain the same, they have contended. They have also pointed out that State companies would be permitted to take part in the tenderprocess.

However from the union perspective any transfer of the operation of services previously carried out by the State sector to private operators is de facto a form of privatisation.

Under the new Labour Relations Commission proposals existing terms and conditions for staff would be guaranteed as part of a registered employment agreement reached between management and the unions in the two State bus companies.

There had been concern on the part of unions that Dublin Bus and/or Bus Éireann could be left facing millions of euro in additional costs if they lost out in the current tender process and that ultimately management would come to staff for further cost-saving measures to bridge any financial gap. This scenario would be ruled out under the proposed registered employment agreement.

There would be new rules governing the operation of any bus market which received a public subvention.

It is proposed that under new legislation, a sector employment order would be put in place setting minimum terms and conditions which would be set out in any contract awarded by the National Transport Authority.

This “floor” in relation to terms and conditions may be lower than those applying in the State companies. However, it would prevent jobs in the sector becoming minimum wage employment.

There would also be new rules applying to the tendering process. All contractors would have to adhere to employment law and abuses of the employment-related terms in the agreements could result in financial penalties being imposed or even the withdrawal of contracts.

In assessing tenders, labour costs will be one but not the sole criteria to be considered.

There is also some consolation for the union in relation to future route tendering plans.

The unions had argued that under theirinterpretation of the law, the National Transport Authority would be compelled to put out to tender the remaining 90 percent of Bus Éireann and Dublin Bus services in 2019.

The proposals state that the Minister for Transport maintained that this was not the intention of the Oireachtas when the legislation was passed.

The Department of Transport said the Government was strongly supportive of the public transport companies and that it would seek further funding so that services could be expanded to meet a growing economy.

Given the divergence in views between the parties, the Labour Relations Commission has recommended a consultation process take place in the months ahead with a view to clarifying any perceived ambiguity about the future plans.

What is unclear at present is what will happen in relation to court action initiated by the two State bus companies against the unions for losses incurred as a result of the previous two-day strike over the route tendering plan.

The companies contended the strike was illegal and that they lost about €3 million on foot of the industrial action. The unions for their part contended strongly that they were engaged in a lawful trade dispute.