Mr Ciaran Masterson
Director, Human Resources
Iarnród Éireann
Connolly Station
Dublin 1

10th April 2015

Re: Foregoing of Gross Pay
(a) Reported Increase in Passenger Numbers
(b) Proposal to Increase Dart Frequency

Dear Sir,
I refer to the above and to recent media coverage regarding the increase in passenger numbers and the positive response from the Company in relation to the accelerating growth in demand for services.

This story has attracted quite a significant amount of interest from our members; understandably so when one considers the contribution being made by staff, to, as it were, put their shoulder to the wheel to help the Company address its financial problems.

Whilst others within the Company might see themselves as being directly responsible for the €45m Capital Funding injection at the end of last year, it is quite clear that the staff had a major input by publicly highlighting the shortfall in exchequer funding as one of the fundamental issues at the heart of last summer’s dispute.

Significantly, the reasons advanced by the Company in seeking a contribution from staff were, among other issues:

• Loss in exchequer funding
Whilst the argument could be made that the two cash injections over recent years, approximately €76m, were granted under the umbrella of Capital Funding, it is significant that the Company’s submission to the Labour Court highlighted a similar amount, €73.7m in reduced subvention as a factor in having to reduce our members’ pay.

• Loss in Revenue
Again the Company argued (at the Labour Court) that revenue had reduced in the period 2008 to 2014 as a factor in having to reduce our members’ pay.

Yet another argument advanced by the Company was that the “Amended Cost Reduction Proposals constitute just one part of an overall solution, which may also entail the reduction of services and the securing of additional funding”.

There is a sharp contrast between the foregoing and the following:

• Increased exchequer funding
• Significant increase in passenger numbers
• Potential increase (as opposed to reduction) in services
• InterCity: favourable revenue returns (2014) ahead of the Company’s own forecast and we believe 3.5% ahead of 2013 figures
• Commuter: ahead of forecast and 8.6% up on 2013
• Dart: also ahead of forecast and 9.3% up on 2013

The referenced increases in passenger numbers are a contrast and compare between 2013 and 2014. They do not include the figures as reported yesterday, which, we are given to understand, are on a steady and continuous upward trajectory.

The widely reported reduction in the cost of fuel will also, we presume, bring added relief to the Company’s finances, if only by using the relatively low price now to hedge for future usage.

We believe the conditions are right to commence a debate around the necessity to maintain a 25-month pay reduction on staff who, as previously acknowledged by the Company have contributed to substantial increases in productivity since 2002, best represented through the achievement of a 37% reduction in staff numbers, delivered in parallel with a simultaneous increase in train services during this period.

Furthermore, it would be unconscionable to expect that staff would just simply cooperate in the provision of additional services in the absence of a debate on the foregoing of gross pay, to which should be added a material recognition of past productivity and an agreed agenda on whatever future productivity may be required to facilitate increased services.

I am now to request an immediate meeting to discuss the foregoing.

Yours Sincerely

______________
DERMOT O’LEARY
General Secretary

CC Mr Kevin Foley Director Conciliation Labour Relations Commissnion