Irish Rail managers take 6pc pay cut ahead of talks
IRISH Rail’s most senior managers are taking an immediate pay cut of over 6pc as a “statement of commitment” to the troubled company’s future.
But it will cut the entire workforce’s wages if they fail to agree to the pay cuts within a week.
The move comes after members of SIPTU, the company’s largest union, backed industrial action - but not strike action - in a ballot.
SIPTU members rejected a Labour Court compromise to ease the impact of the pay cuts, which are temporary, by shortening the length of time they would last from three years to two years and four months.
In an email to staff, Chief Executive David Franks warned “there is nowhere else to turn”.
“We have exhausted the avenues provided for under the industrial relations machinery of the state over the past 19 months, with extensive engagements under the auspices of the Labour Relations Commission and the Labour Court,” he said.
“This has included three separate proposals formally balloted upon by colleagues.
“There is nowhere else to turn. The responsibility for securing these savings now falls on ourselves: management and workforce collectively.”
However, he said he believed there is a willingness on all sides “to constructively engage”.
“I earnestly hope that this will allow us to progress and address together the other challenges facing our company,” he added.
The pay cut will reduce Mr Franks €225,000 salary by €13,725.
The pay cuts range from 1.7pc to 6.1pc for those on wages over €100,000 a year.
However, the majority of staff would take a 1.7pc pay cut, which Mr Franks says equals €10 a week after tax.