Agreed Clarification Document on Labour Court Recommendation (LCR 20741)
As part of an agreed and concerted process to explore central reasons underpinning the recent rejection of LCR (20741) the Company and representative trade unions have engaged in a series of face-to-face discussions. During the course of these facilitated talks the following issues were surfaced for further discussion, definition and clarification:
• Clarification of Subvention Levels
• Trust & Confidence(086) 817 3947(086) 817 3947(086) 817 3947
• Towards 2016
• Reduction of Foregoing of Gross Pay
• Productivity
Clarification of Subvention Levels
The allocation of PSO funding for 2014 is currently set at €117.5M. This has been confirmed as part of the 2014 budgetary process.For the period 2015 to 2018 in respect of PSO subsidy funding we have used the 2014 figure for each year up to 2018 which Iarnród Éireann have included in our 5 year plan.
The DTTAS has confirmed its support for this position.
It should be noted that in the unlikely event of further reductions in subvention levels, it is confirmed that such reductions will not impact negatively in any shape or form on the terms and conditions of employees.
Trust & Confidence
As outlined within the LCR and verified by the trade unions’ independent financial advisors, it is clear that the measures contained in the proposals of 30th Jan 2014 are unavoidable if the future of the company and the employment that it maintains is to be protected.
In this context the company are willing to apply further definition to the commitments contained in the Labour Court Recommendation as follows:1. The foregoing of gross pay measure will [should] apply for a defined period of time (28months). after the expiry of which, the pre-existing rates should be automatically restored.2. During the period of 28 months the company will not propose or otherwise process any claims for increasing the foregoing of gross pay element of this agreement.In addition, the following is proposed:
• A quarterly meeting of an agreed Top Participation Group (in line with company procedures), where ongoing reviews and updates of progress on Cost Containment and financial performance are undertaken.
• A communications plan will be agreed at the first meeting of this agreed Top Participation Group.
Towards 2016
It should be noted that Toward 2016 commitments were made at a time when starkly different economic conditions were prevalent. However, trade unions contend that payment under the terms of the last National Wage Agreement (Towards 2016) remains outstanding.
It is recommended that the parties agree in good faith immediately on the expiry of this agreement, to address trade union claims in the context of all prevailing economic circumstances at that time.
Any future based discussions must reflect and be based on the financial circumstances prevailing at that time.
Reduction of Foregoing of Gross Pay
In relation to the issue of foregoing of gross pay, and the trade unions contention that the 28 month period should be reduced, with additional savings sourced from other areas to realise the full value of the 30th January proposals.It is the company’s position that we cannot commit to a reduction in the 28 month period at this juncture. However, we are willing to examine with the full cooperation of the trade unions other potential sources of non-payroll savings which could potentially reduce the 28 month period.These examinations can be fed into, and form part, of the proposed quarterly reviews and will focus on meeting the trade union’s aspiration to reduce the period dependant on verifiable savings realised.
Productivity
Management will work in conjunction with representative trade unions to deliver productivity by distinctive groups across the organisation.
Underpinning any agreement is the requirement for both management and representative trade unions to work together over time and with concerted effort, to generate ‘a pot’ of verifiable savings from which benefit can accrue to both parties.
All savings must be fully realised and verified in order to fund the various elements as we progress through the phases of agreement. Savings will be achieved through a reduction in overall Numbers through Voluntary Severance (predicated on the availability of funding), combined with natural wastage (Promotion, Illness, Ordinary Retirement), achievable through the incremental introduction of more efficient rostering and the cessation, over time, of rest day working.
It is proposed that while benefit accrues as per viable assessment, no payments will be made unless real savings are identified.
In order to calculate the benefit accruing to staff the following basic principles will apply across all groups:
1. Annual Savings through all measures i.e. Voluntary Severance, Efficiencies, Flexibilities etc will be established.
2. The costs involved in giving effect to these savings e.g. Voluntary Severance Funding including the associated borrowing costs, will be divided over the period of the productivity arrangements and deducted from the Annual Savings.
3. Net savings after (2) above will then be divided on a 50/50 basis between staff and the Company.
4. The benefit accruing to any particular group will then be converted into a percentage increase.
5. In some circumstances the benefit will be afforded on the basis of an increase in grade where applicable.
Payment of any benefit accruing to staff will be paid following the completion of the 28 month period.
These discussions will begin on acceptance of the Company’s cost reduction proposals, and in the particular circumstances of a small of number of groups where engagements have already taken place these discussions will recommence within 8 weeks of the acceptance of the proposals. It is envisaged that discussions in respect of all groups will be completed 18 months.
Discussions on productivity will be conducted with three defined groups, those being, The Railway Undertaking, the Infrastructure Manager and Shared Services (Central), will reflect the realities and business needs of these three defined areas.
Recommendation
All parties will recommend to their respective membership the acceptance of the measures outlined above.
