Staff at the Luas light rail system in Dublin have voted overwhelmingly in favour of industrial action in support of a claim for pay increases of between 23 per cent and 50 per cent.
The trade union Siptu, which represents the vast majority of the 300 employees at the company, said its members would meet next week to consider the nature and timing of any action.
Under an agreement with the company, it is understood the union would be required to provide three weeks’ notice.
About 90,000 passengers per day would be affected in the event of industrial action interrupting tram services.
Bonus payments
The operator of the Luas system, Transdev, told staff they will loses out on bonus payments of between €2,500 and €3,000 in the event of industrial action.
Siptu organiser John Murphy said all four grades of staff in the company represented by the union - drivers, traffic supervisors, revenue protection officers and revenue protection supervisors - voted for industrial action.
Overall, 99 per cent of union members backed industrial action.
“This ballot resulted from a refusal by the management of Transdev to accept our members’ claim for improved terms and conditions of employment as part of a new collective agreement,” he said.
“Since it started operation in 2004 the Luas network has grown rapidly, with several extensions added and new developments planned. Correspondingly, during this period passenger numbers have also consistently increased.
“Transdev successfully retained the contract to operate the Luas network in September 2014. The company has consistently returned annual profits from the operation of Luas over the period of all preceding contracts.”
Comparable workers
Siptu members at Luas believed they were underpaid, particularly in comparison with comparable workers in Iarnród Éireann, Mr Murphy continued.
"They do not accept that the current contract between Transport Infrastructure Ireland and Transdev, concerning the operation of the Luas network, restricts possible pay increases to the consumer price index, as has been claimed by their employer."
In December, Luas staff rejected a Labour Court recommendation aimed at resolving the row. The company accepted the recommendation.
Increases sought by the Luas personnel to bring their pay into line with train staff vary, but depending on the grades concerned range from about 23 per cent to more than 50 per cent in some cases.
Transdev did not comment on the ballot result.
In letters sent to staff in recent days it described the union’s pay demands as “excessive” and said they would cost the company about €30 million - or about €6 million for every year of its contract to operate the light rail system.
Service continuity
The letter also stated that in the event of industrial action, the annual bonus of 6.5 per cent, which it said was conditional on service continuity, would not be paid in 2016 “nor will it be reinstated in any outcome”.
“The vast majority of tram drivers are paid a full bonus, and the average bonus is €2,493.78 per tram driver annually.
“Any time lost due to industrial action will be deducted from your salary and will not be reinstated in any outcome. The company’s ability to fund any increase in salary will be seriously compromised due to significant financial penalties which we will incur.
“These penalties will have to be factored into any resolution of the dispute,” the letter said.
The company said a recent independent financial review estimated that Transdev would lose about €700,000 this year.
The company told its revenue protection supervisors that their bonus payments - worth on average €2,555.26 - would not be paid if the threatened strike went ahead.
The bonus payment for traffic supervisors is about €3,000 per year.
