Siptu and National Bus and Rail Union (NBRU) members at Iarnrod Éireann have both voted to accept proposals aimed at ending a dispute over pay cuts.

Members of the NBRU voted in favour of the new proposals by 61 per cent to

39 per cent, while, earlier this afternoon, members of Siptu at the company backed the proposals by 79 per cent to 21 per cent.

About 160,000 passengers were affected in August when members of the NBRU and Siptu staged two work stoppages in protest at moves by management at the company to implement unilaterally a controversial cost-saving plan.

Management said it had no choice but to put in place the payroll savings, given the precarious financial state of the State-owned rail operator.

Iarnród Éireann welcomed the result of the ballots, saying “the acceptance ensures that customers will not experience further disruption from industrial action. The temporary pay reductions are in place for a total of 25 months, and range from 1.7 per cent for employees earning €56,000 or less (74 per cent of employees) up to 6.1 per cent for those earning over €100,000.

NBRU general secretary Dermot O'Leary said: "In advance of our ballot we conducted a comprehensive consultative process with our members. They have made it abundantly clear that they intend to hold the company to account in relation to addressing waste and extracting significant savings from the large non-payroll cost base. We are equally determined to engaging with the National Transport Authority (NTA) to achieve a route towards matching service levels with the appropriate and vital Government funding required to provide a modern public rail transport service.

“We have written to both the Company and the NTA putting them on notice with regard to them fulfilling their obligations under the LRC proposals, this is just the beginning in terms of securing a sustainable future for our Rail service and our members jobs.”

As part of a package of settlement proposals drawn up after talks at the Labour Relations Commission, management suspended the pay cuts – which ranged from 1.7 and 6 per cent – pending today's ballot by the two unions.

Under the new proposals, the duration of the temporary pay cuts has been reduced from 28 months to 25 months.

The new proposals allow unions to make and pursue any pay claim considered to be appropriate at the end of the 25-month period.

Management at Iarnród Éireann also gave an undertaking that no further pay cuts would be proposed for staff for the duration of the 25-month agreement.

The proposals also provided for “an appropriate mechanism” to be put in place under which the company, the unions, the National Transport Authority and the Department of Transport could meet regularly and share information.

“A forum will be established which will meet quarterly and which will be attended by these key stakeholders,” the proposals stated.