In March 2004, strikes were averted at the last minute at Ireland's state-owned airport company, Aer Rianta, and national rail and bus company, CIE. The action had been called as part of a conflict over the government's proposed restructuring of the state transport sector. The Aer Lingus airline is also facing mounting industrial relations strife.
In early 2004, there has been significant conflict at the state-owned airport company, Aer Rianta, and national rail and bus company, CIE, related to trade union resistance to proposals by the Minister for Transport, Seamus Brennan, aimed at restructuring the two organisations. In the case of Aer Rianta, the Minister proposes to break up the company up into its three constituent airports (Dublin, Shannon and Cork), while, in relation to CIE, he proposes to open up 25% of the Dublin bus market to outside competition from the private sector. The unions and their members fear that the proposals could lead to a downgrading in terms and conditions of employment and possible job losses. The unions also take the view that the Minister has not clearly laid out details of his proposals, and that he has been sending out mixed and contradictory signals in the media.
Aer Rianta
At Aer Rianta, the Services Industrial Professional and Technical Union (SIPTU) had threatened a six-hour stoppage on 18 March, in protest over the government’s plans to break the company up into its three constituent airports. It took the personal intervention of the Prime Minister (Taoiseach), Bertie Ahern, to avert this strike. As was the case in a previous intervention in January 2004 (IE0402201N), a letter from the government to SIPTU, apparently providing 'assurances and guarantees' on employment security and pay and conditions, led to the union calling off industrial action at the last minute. Mr Ahern’s personal intervention came at a time when the Ryanair airline company had applied to the High Court for an injunction against SIPTU to prevent the strike planned for March from going ahead. In the end, the SIPTU leadership was satisfied with the Taoiseach’s assurances and the action was called off.
The outcome was that the parties are set to continue with the current talks process on the future of Aer Rianta, which is taking place under the auspices of the Labour Relations Commission (LRC). These talks are aimed at addressing the issue of future terms and conditions of employment, which SIPTU and its members are so concerned about. This still leaves the issue of whether the airport break-up plan should actually go ahead - which is in the political rather than the industrial relations sphere.
Although the strike was cancelled, there are many issues still to be resolved, and the possibility of industrial action remains. This is a far cry from the consensual relations that used to exist at Aer Rianta, which once had what was perhaps the most advanced form of enterprise 'partnership' in the country (IE0312202F).
CIE
At CIE, meanwhile, SIPTU was due to hold a 24-hour stoppage commencing on midnight on 18 March, in protest at the Minister’s plans to franchise out 25% of Dublin bus routes to private operators, in order to introduce greater competition. However, the strike was cancelled just a few hours before the deadline, following a tense and divisive meeting between the SIPTU leadership and the CIE strike committee. The SIPTU strike committee, comprised of CIE shop stewards and worker directors, was keen for the strike to proceed, but the SIPTU leadership asserted its authority and demanded that it be cancelled.
Some observers were somewhat surprised that SIPTU had threatened to strike when the other main union representing CIE workers, the National Bus and Rail Union (NBRU), had not done so. NBRU was satisfied that progress had been made in talks on the issue, taking place at the LRC. In contrast, SIPTU was not satisfied that meaningful progress had been made. There is a history of inter-union rivalry between these two main CIE unions.
According to the specialist weekly publication, Industrial Relations News, three options have been put to the parties at CIE during the LRC talks as a possible means of resolving the dispute. The first of these - allowing CIE's Dublin Bus company to compete for all new routes, but only if it would allow other operators to bid for all of its existing routes - was rejected by the unions out of hand. This left two other options, both of which would protect the existing Dublin Bus route network to some extent, most likely on a legislative basis. The main question then would be the extent to which Dublin Bus would be allowed to compete for new bus routes, of which a certain number are required to service the needs of a rapidly growing city. The first of these would allow Dublin Bus to retain all its existing routes but be barred from all new routes. Alternatively, the company could allow a set percentage of its existing routes to be open to competition, in return for being allowed to tender for twice that amount of new bus routes.
The final option would be to leave the current Dublin Bus network untouched, but leave the company out of the market for new routes for a period of time, to allow private operators a free run to establish themselves. Then, after this period of time, once the Dublin Bus share has dropped below a specified agreed percentage of the overall market, the company would be allowed into the market for the new routes. At that point, the private operators should be strong enough to compete with the state-owned provider.
It remains to be seen whether any of these proposals could form the basis for an agreement - alternatively, the situation could escalate. CIE has a history of adversarial industrial relations (IE0008154F).
Aer Lingus
As of March 2004, the state airline, Aer Lingus, continues to experience a turbulent industrial relations climate connected to its attempts to implement restructuring proposals emanating from the crisis that engulfed it after the events of 11 September 2001 (IE0111101F). The two main Aer Lingus trade unions, SIPTU and the Irish Municipal Public and Civil Trade Union (IMPACT), have complained recently that the company has acted unilaterally in relation to its restructuring agenda, rather than proceeding by way of consultation and agreement.
In mid-March, IMPACT pilots and cabin crew at Aer Lingus were facing potential disciplinary action over issues such as redeployment and transfer. Ballots have been held in each case. Meanwhile, in relation to two disputes involving SIPTU members, both are formally in procedure, but in each case the union’s members have balloted for industrial action. The union’s catering section has rejected an investment and change plan, which is now with the Labour Court, while ground handlers at Shannon airport have voted against a plan that would see them lose 100 jobs. The company insists these reductions would be voluntary, but the unions want a guarantee.
Given the level of conflict between the parties, the 'trouble-shooting' National Implementation Body (NIB), which is charged with overseeing national agreements and dealing with serious disputes (IE0103233N), is meeting with leading figures from Aer Lingus management and its trade unions to discuss the mounting industrial relations crisis at the airline.
Commentary
Ireland’s state transport sector has increasingly been bedevilled by conflict in recent times, related to attempts by the transport minister and management to restructure Aer Rianta, Aer Lingus and CIE. It is clear that, in industrial relations terms, all parties could have handled the issues better. As matters stand, there appears to be a distinct lack of trust between the parties.
In particular, attempts by the minister to introduce more of a 'private ethos' in the state transport sector sector have encountered powerful trade union opposition. The unions are concerned with protecting the terms and conditions of their members. There is also a feeling on the union side that the minister has not clearly spelled out the nature of his proposals and is sending out mixed messages in relation to his intentions for CIE and Aer Rianta, which is fuelling mistrust.
The country’s largest union, SIPTU, has left itself open to the accusation that it has handled the situation badly; for instance, by threatening strike action while talks were in progress at the Labour Relations Commission, and only cancelling at the very last moment. In the end, at CIE the SIPTU leadership had to go against the wishes of its own strike committee - which had become increasingly militant and angry - in order to cancel the proposed strike. The union is now in the process of restoring unity within its ranks.
While the most recent strike threats, in March 2004, have been rescinded, with talks set to continue, the respective disputes are far from being resolved, and the way ahead will be extremely difficult in Ireland’s state transport sector. (Tony Dobbins, IRN)