TRANSDEV, THE COMPANY that runs the Luas, is standing firm in the face of a threatened strike from drivers.

In a strongly worded statement this afternoon, it said pay and conditions on the Dublin tram system were very favourable, and called for fresh talks at the Workplace Relations Commission.

Drivers voted overwhelmingly in favour of strike action last week, with a Siptu representative saying that 24 or 48 hour stoppages were “quite likely”.

223 Luas employees took part in the ballot. 221 voted in favour of industrial action, with only two people voting against.

The union needs to give 21 days notice of any action.

Drivers are understood to be preparing for a two-day stoppage.

Escalating row

Speaking last week, Siptu organiser Owen Reidy said the union had been talking to management for 18 months but had been “getting nowhere”.

“I anticipate that given the result and the fact that it is emphatic that there will be a lot of frustration, and the ballot can allow us to do 24 and 48 hour stoppages,” Reidy said.

Drivers are essentially seeking pay parity with heavy rail drivers for Irish Rail.

Currently, the top salary after ten years of service is around €42,000. Siptu’s calling for an increase in the starting salary to €35,000 – up from €32,000 – rising to €60,000 after ten years.

Management hits back

In today’s statement Transdev Managing Director Gerry Madden said he believed “pay and terms and conditions of Luas employees are, and always have been, very favourable”.

The Labour Court issued a recommendation in December 2015 “that both parties should enter into realistic and meaningful negotiations under the auspices of the Workplace Relations Commission (WRC) on the issues in dispute,” he said.

Transdev firmly believes that the Labour Court’s recommendation provides the only framework within which this dispute can be resolved and is calling on SIPTU and internal staff representatives to re-engage under the auspices of the WRC to resolve this dispute and avoid any unnecessary disruption to our customers.

According to Transdev:

“The claims being pursued by SIPTU on pay alone are between 8.5% and 53.8% depending on the pay scale, and would cost Transdev €30 million over the 5 years of the Luas operating contract – €6m per year.

“This is at a time when Transdev finds itself in a loss making situation.

“The loss incurred by Transdev in 2015 was €700,000 and we are predicting further losses in 2016. The financial status of the company has been independently verified by Mazars and this analysis has been fully shared with SIPTU as recommended by the Labour Court.

“The Labour Court recommended that the Mazars report should provide a context for the parties to engage in the discussions under the auspices of the WRC.

SIPTU members rejected the Labour Court recommendation.

Pay scales

The company, in its statement this afternoon, included a link to detailed information on pay scales.

It also highlighted a bonus system for workers, in addition to pay, of up to 6.5%.

“This averages out at between €2,200 and €3,000 per employee per annum. Over 96% of employees achieve the maximum bonus.”

Signing off its lengthy statement, the company said:

“During the economic crisis, Transdev, unlike many other employers, did not cut pay, freeze pay or change our employees’ terms and conditions. On the contrary Transdev increased pay between the years 2009 and 2015, with increments ranging between 1.25% and 5%. During this period we also reduced average working hours.