SIPTU negotiators walked out of a meeting with Dublin Bus management after 30 minutes yesterday.
One of the senior union negotiators, Mr Ken Fleming, said later that they would not negotiate on proposed cutbacks of £8 million in the company's annual operating costs until outstanding grievances had been dealt with.
Later the Minister for Transport, Energy and Communications, Mr Dukes, said on RTE's News at One that the investment package to make CIE competitive was at stake in the negotiations. These talks are now beginning between the group's unions and individual managements within the subsidiary companies.
The companies "need to contribute in the region of £40 million internally" to the restructuring, Mr Dukes said.
"If we don't get those kind of savings then the investment plan will be vitiated by that amount and there will be even greater difficulties for the CIE group of companies in the future".
He refused to be drawn on whether the Government would make up any shortfall to the company if CIE failed to meet its cost saving targets in the negotiations. These are due to conclude by March 31st.
At yesterday's meeting with Dublin Bus management, negotiators representing the craft unions remained after the SIPTU walk out to hear details of proposed cutbacks in bus maintenance operations.
Unlike Iarnrod Eireann, which announced all its cost cutting proposals to the unions on Thursday, Dublin Bus is disclosing details department by department.
Yesterday the craft unions were told that 19 redundancies were being sought among the 220 workers involved. The company also wants to cut basic pay for new recruits and reduce sick leave provision.
Because of a successful productivity agreement in 1993, bus maintenance is likely to be one of the least contentious areas within the company, or the CIE group as a whole. The total number of redundancies Dublin Bus is expected to seek is around 150, compared with over 500 in Iarnrod Eireann.
The walk out by SIPTU is part of its new go it alone policy, especially in areas traditionally dominated by the craft unions.
Before the walk out the SIPTU delegation succeeded in winning commitments from the company to address two long standing grievances over disciplinary procedures and redundancies.
The CIE union group secretary, Mr Hugh Geraghty, said later that none of us are any happier with the proposals than SIPTU. If management realistically want us to move forward there will have to be incentives for people to change".