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Dublin Bus Workers Reject the LRC Proposals...

category national | worker & community struggles and protests | feature author Monday March 23, 2009 07:51author by A.R Report this post to the editors

and de facto vote in favour of all out strike action

featured image
The Government Started This - We'll Finish It!

Workers in Dublin bus rejected the Labour Relation Commissions proposals on Thursday 19th March. They are now planning an all out strike from March 30th. This article firstly deals with the background to the current standoff in Dublin Bus, then examines the initial proposed 'cost effectiveness plans' issued by Dublin bus management on the 16th January 2009, subsequently it will review the LRC proposal and conclude with some reflections on how the situation will unfold over the coming months. It is based upon detailed discussions with a driver with who has been working for Dublin Bus for 35 years.

1. Introduction: The problem began with the government

Dublin Bus is a semi-state private company which is legally mandated to be run on a commercial basis. It is not a state company and whilst it provides a public service, drivers are now de facto private workers. For example, drivers were not affected by the recent pension levy. Pensions differ within Dublin Bus but generally they are akin to private sector pensions defined by contribution. Some are defined by benefit. Drivers tend to view themselves as public workers even though in principle they are private workers. Dublin bus because of its commercial basis cannot run at a loss. So, whilst it makes rational sense for a public service providing transport to a population of 1.5 million people to run at a loss, it can only do so if it covered by a state subsidy. Dublin bus is the lowest subsidised 'public transport service' in the EU.

Dublin Bus was mandated by the government to introduce 160 new buses three years ago. Dublin bus argued at the time that the bus routes politicians wanted to introduce could not be filled by the public. They argued that the routes to Dublin’s many suburbs could not be commercial because they will not fill them with the necessary numbers. The government ignored this advice and insisted (via their quasi-public representation) that the buses be introduced and new drivers hired. Dublin bus launched an active recruitment drive and employed 160 drivers on contracts with poor working conditions. The routes were launched and Dublin Bus was proved correct. People stuck to driving their cars to work and the routes starting losing a fortune. There was no proper planning by either Dublin bus management or the government to ensure that people use public transport. The 160 workers who are now faced with losing their job fall are drivers recruited to provide for these routes/buses.

What is important to note here though, is that the government started this overall problem not the company itself. It is indicative of a complex public-private relationship whereby Dublin bus are expected to act like any other commercial company yet follow public service logic which is in tension with private sector logic. One prime example of this is the fact that many Dublin Bus route are unprofitable and run at a loss but they provide a service to the elderly community who use the service. The lack of belief in the concept of public service by the government resulted in an uncoordinated approach to public transport in Dublin city. The Fianna Fail government started the problem in Dublin Bus. They now need €30 million to pay for routes the government insist upon, but to maintain their commercial mandate (legislated for by the government) they cannot do this. The government will not recapitalise the company. Dublin Bus management are now sacking 160 drivers to potentially reemploy many of them as casual workers cut shift pay for over 300 drivers and decimate the working conditions for all drivers.

2. 16th January: Dublin Bus launches their cost effectiveness plans

Dublin Bus Management took advantage of the recession (like many others) and announced a 'cost effectiveness plan on 16th January 2009 without consulting any of the unions. These plans proposed to introduce work practice changes that the Unions (SIPTU and NBRU) had successfully resisted over the past 12 months and job cuts. The six main proposals were:

Force 160 drivers to be sacked without exploring alternative options.
Force a possible 20 permanent staff to be made compulsory redundant.
Re-employ the same 160 drivers on a 2 day week (Saturday - Sunday) that would be used as casual workers on a weekly basis.
Cut the shift pay (worth €112 a week for some drivers) and ensure future drivers would not be in receipt of this shift payment.
Completely eradicate all compensatory payments and decimate working conditions.
Ensure all drivers would suffer a cut in pay.

160 job cuts could have been achieved through voluntary redundancies. The management refused to go down this route because it would have cost them more money. They would have had to pay out full statutory payments. Therefore they went for the easy option to sack 160 new drivers on weak contracts. These are generally young drivers with more to lose. Therefore the initial demand by SIPTU was to introduce voluntary redundancies which would have been taken up en masse by many older drivers.
Some of the proposed working conditions include drivers reversing back to a situation in the 1970's whereby they are not allocated a fixed route. This means that drivers would arrive into work and be allocated different routes on flexible basis. Other small changes include drivers on bogey duties working say four hours in the morning, taking an unpaid lunch break of five hours and going back to work in the evening for a further four hours. Ultimately the cost effectiveness plan was an assault of the achievements of Dublin bus workers over the past 35 years.

SIPTU and the NBRU called for an all out strike. This was cancelled when management changed course and stated they were willing to negotiate the plan. The Unions and Management entered talks in the Labour Relations Commission on the 2nd March. The LRC is an Industrial Relations conciliation service established in 1991. It emerged out of a series of Industrial Relations Acts aimed at providing a forum for workers and employers to enter into dialogue to solve disputes. It supports the introduction and use of consultation and negotiation procedures to resolve disputes which may arise in individual employments. The parties to an industrial dispute are encouraged to use the Commission's services when local procedures have been exhausted and when every effort has been made to resolve the issue in dispute.

It is a mechanism for unions and employers to enter into negotiations without resorting to the Labour Court. The LRC cannot issue legally binding recommendations. It is a conciliation service that makes proposals. Thus, even if Dublin Bus workers accept the LRC proposals management can legally renege on anything within the document.

3. March 19th: The Labour Relations Commission Proposal

The LRC proposal is an attempt to allow Dublin Bus management to achieve ‘cost savings’ whilst accommodating some of the fundamental objections that SIPTU had raised about the original proposals. SIPTU did not recommend to their membership how to vote. Usually SIPTU recommend a Yes or No vote. Not making a recommendation is often read as a semi-preference for the latter.
The LRC proposals ensure that no compulsory redundancies will take place, voluntary severances will be allowed for a number of drivers, no shift driver will suffer a cut in pay (though, crucially this is not ‘guaranteed’ in the proposal), members who previously got paid in cash should continue to do so, current drivers who are on the 6-week rota will have access to Sunday working.

SIPTU held two public meetings with members to discuss these proposals. Several meetings took place on Wednesday 18th March. Overall 200 drivers attended these meetings (interestingly no non-Irish drivers attended these meetings despite the fact that over one third of drivers in Dublin Bus are non-Irish. This created fear amongst many drivers that migrant workers would support the proposals due to the fear over job losses). The main concern that emerged by members was that nothing in the proposal was guaranteed, particularly the shift pay for drivers on bogey, universal and euro duties. The second main issue raised was related to the terms of voluntary redundancy.

In the proposal drivers over 60 would receive a full redundancy payment. Drivers under 60 would have received a payment of just over €74,000 yet they had to pay back their pension contribution. Thus, a driver after 35 years service was being offered a disgraceful payment of €27,000. On this basis Dublin Bus management could not have achieved their 160 job cuts. The drivers over 60 were generally in favour of the proposal but most other drivers rejected the agreement because of changed working conditions, no guarantee of shift pay and disgraceful redundancy package for drivers under 60.

4. Dublin bus workers reject the proposal and plans begin for an all out strike on 30th March

Over 80 per cent of SIPTU workers and 90 per cent of the NBRU rejected the LRC proposal on Thursday 19th March. It would appear that Dublin Bus Management predicted a YES vote. They issued letters some of the over 60 drivers with the terms of reference of their voluntary redundancy on Weds 19th March. When the NO vote came through Dublin Bus called many drivers off their duty to issue them with letters of resignation. Dublin Bus management are now reverting to their original plan of sacking 160 drivers and ploughing through regressive working conditions. An all out strike is planned for the 30th March.

A driver of 35 years (of which at least 12 months were spent on strike) predicts the events will unfold along the following basis. The drivers will go out on strike on the 30th. It will last for maybe two weeks. Drivers start feeling the pinch in their pocket and money issues start to determine their capacity to remain on strike. Bills have to be paid and kids fed & clothed. The unions will go back into talks with management and achieve a proposal with slightly better conditions. Strike action is a neccessary means to achieve neccessary demands. It affects families and should not be romanticised in and of itself. From my own persoanl experience 'strike' brings up memories of being broke. It is a neccessary and rational tool but for any working family it is a difficult experience. It is a decision taken by workers with their unions.

At the end of the day it is the drivers who will ultimately pick up the pieces for the governments incompetent handling of public transport provision. Fianna Fail created this problem through 15 years of PD transport policy. Its policies have failed and it is the state that should bail out Dublin Bus. If we can afford to bail out our entire banking system then surely the government can find €30 million to solve this problem in Dublin Bus? One might expect that the Green Party could find the resources to recapitalise Dublin’s public transport system? Unfortunately they have bought into the futile and irrational argument that it is the conditions of Dublin bus drivers that need to change not the financial structure of the company.

Dublin Bus is in financial difficulty because of incompetent transport-policy decisions by the government. It can be solved by either a) Dublin Bus management offering standard voluntary redundancy packages to the drivers who have provided a service to the city for over 30 years or b) the state recapitalising the company and restructuring its transport policy that puts quality public bus services at the core. The latter should be the ultimate aim and requires radical reform of transport policy. This requires a new vision for public-policy and can only be achieved by a Left-Led Government backed by a strong Labour Movement.

author by SCpublication date Sun Mar 22, 2009 16:53Report this post to the editors

Thanx for the overview. solidarty with bus workers!

author by .publication date Sun Mar 22, 2009 19:09Report this post to the editors

I didnt read it all but from what I read its ''good news''.

author by D_Dpublication date Mon Mar 23, 2009 13:29Report this post to the editors

Very useful. Indymedia at its best,

author by Miriam Cotton - MediaBitepublication date Tue Mar 24, 2009 09:28Report this post to the editors

Great thread.

The mainstream media is gunning hard against this strike - it will be relentless between now and Monday:

This needs to be countered - and very hard. Union organisers and members must put the word out that the mainstream media is the sworn enemy of all workers at this moment - pedalling fear and lies in equal measure. While many will of course know this perfectly well others again may well be intimidated by it - and it is intended to intimidate. We must let them feel our anger at their betrayal. The narrative is that it will put off foreign 'investors' and cause 'economic suicide'. Foreign investors being the people who have enjoyed billions from the public purse in subsidies, tax breaks, pathetic levels of corporation tax - all at the expense of small enterprises for whom running a business is made nigh on impossible - who must pay much higer rents, bank charges etc than the foreign divestors. Small businesses are the businesses on which our economy should really be built but they are pitilessly neglected and used. We don't want foreign investors on these economically suicidal terms - they've been a part of what created the problem. 3 million people marched in France recently, they are marchig and protesting all over the world and Ireland is no different. This isn't just about pay - it's about democracy itself and insisting the government abandons the policies which are destroying our country.

The Irish Examiner has been relentless in its attack on public sector workers. They and others are crowing about the Impact ballot result yesterday. As if a 65% vote in favour of the strike were not a ringing endorsement of it. I sincerely hope there was no funny business around the vote.

author by A.Rpublication date Thu Mar 26, 2009 19:10Report this post to the editors

The strike at Dublin bus has been called off by SIPTU & NBRU after a Labour court intervention, and an agreement by Dublin Bus management that they will not proceed with their cost cutting measures........

author by 46Apublication date Thu Mar 26, 2009 23:26Report this post to the editors

The full story is that the cost-cutting measures have merely been deferred pending an attempt to thrash out some sort of compromise before the Labour Court. This will probably see some sort of improvement in the redundancy terms and the cost-cutting programme phased over a slightly longer period.

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