Rail dispute: Drivers could get 8% rise, says Iarnród Éireann

Indications by Iarnród Éireann that it would seek to recoup the cost of Friday’s strike by train drivers from any future settlement proposals could make the prospects of finding a resolution more difficult.

The exact cost of the three-hour stoppage is not yet known as the National Transport Authority (NTA) has not finalised calculations on how much of its €117 million exchequer subvention the rail company should forfeit for not operating its full schedule of services as contracted on Friday.

The average daily exchequer subvention to Iarnród Éireann runs at about €250,000. However, while the stoppage lasted for only three hours the NTA will examine the knock-on implications and whether any other services were disrupted after this period.

The company will also have to factor in loss of revenue at the start of a bank holiday weekend and offset this figure against salary deductions imposed on drivers who took part in the strike as well as any savings made on fuel costs.

However, it estimates that the strike overall could cost it €500,000.

Siptu said on Friday that "the threat by management to offset what it claims was the cost the company incurred from today's industrial action from any proposal it intends to present aimed at concluding this dispute is not constructive to finding an overall settlement".

The National Bus and Rail Union said that no formal proposals had ever been put to it by the Workplace Relations Commission during the recent talks.

However, it is understood Iarnród Éireann envisaged reforms which would generate efficiency savings of about €3 million over three years, which would be shared with drivers.

The company’s productivity proposals would have allowed for the departure of about 50 of the existing 515 drivers, the suppression of the posts and the introduction of revised rostering arrangements for those remaining.

Frequent Darts

By sharing savings on a 60:40 basis, the company believed this would have generated increases in earnings of 7.9 per cent for drivers while facilitating the provision of enhanced services such as more frequent Darts and the operation of new routes through the Phoenix Park tunnel.

However, the NBRU said it would need to examine closely how any efficiency proposals would operate in practical rather than theoretical terms.

It is understood the company envisaged a €21.33 per week non-pensionable allowance would come into force – funded by savings of €900,000 – in February 2016 while allowing for the introduction of 10-minute frequency Dart service, using savings from suppressed positions as well as reduced overtime and rest days worked.

In February 2017 the productivity allowance would rise to €45.03 per week.

“This requires efficiencies amounting to €1.2 million to be implemented. The negotiating teams have identified the introduction of services through the Phoenix Park tunnel and more flexible terms and conditions to deliver savings equivalent to 20 driver positions”, the Iarnród Éireann proposals state.

A third increase in the productivity allowance to €66.36 per week in January 2018 would be put in place under the company proposals. This would come about from efficiency savings of about €900,000.

The company envisaged that changes and reforms leading to the second and third payments would come into effect six months ahead of the money being paid.

The company has argued that unions were seeking the reduction in the working week of drivers but said this would increase costs.

Sources said unions contended that while drivers at Iarnród Éireann were rostered for 43 hours per week, those in Northern Ireland work 38.5 hours and some in Britain work 35hours.