The National Bus and Rail Union (NBRU) is to ballot its members for industrial action at Bus Éireann after management confirmed it is seeking to separate its loss-making Expressway service from the rest of the company and introduce lower terms and conditions for staff.

The trade union Siptu, which also represents staff at the company, said it would be consulting its members about a similar ballot.

Both unions described the company’s proposals as unacceptable.

The company has also ruled out pay rises for staff.

Meanwhile, talks between management at Iarnród Éireann and trade unions on a reduced working weeks for drivers as well productivity and driver-training issues ended unsuccessfully on Wednesday. The issues have been referred to the Labour Court.

Position critical

In a letter to the company’s 2,600 workers on Wednesday its chief executive Martin Nolan said Bus Éireann’s finances were in a critical position.

He said the company had lost €5.6 million last year and had projected losses of €6 million in 2016. He said a minimum €7 million financial turnaround was needed.

Mr Nolan said its commercial Expressway inter-regional coach service was facing challenges from growing competition and increasing costs.

He said the company had formulated an outline commercial plan to address the severe financial difficulties it was facing.

“There will be some structural changes required in order to deliver the commercial plan. These will involve separating out the Expressway product entirely from the rest of the business and implementing new terms and conditions for staff within the Expressway product. It is proposed to sub-contract a number of routes within the plan, but it is expected that all routes currently operated will continue to operate.

“A new management and support structure will be implemented for the Expressway business. Other efficiency measures may be required across the entire business. Regulatory issues and market conditions would indicate that the company will need to restructure as it moves into the future. Staff will be consulted on these measures with a view to gaining agreement.”

Management at Bus Éireann gave broad details of its restructuring plans to trade unions at the Workplace Relations Commission o n Wednesday.

The unions have referred the company’s refusal to consider any pay rises for staff to the Labour Court.

They have said they will not engage with the company on its proposals for the Expressway service.

Low wage service

The general secretary of the NBRU Dermot O’Leary said his union would not tolerate “the imposition of a low-wage bus transport service as a solution to a problem which has directly resulted from Department of Transport policy”.

“The current Dublin Bus dispute and this crisis at Bus Éireann are not unconnected. There are huge question marks over the Department of Transport and its stewardship of the State-owned public transport services, cutting off vital financial support and overseeing a licensing regime which has now led to the potential decimation of an Expressway service that connects into every nook and cranny in rural Ireland. ”

Willie Noone of Siptu said the Bus Éireann proposals were unacceptable to his members and the union would not be discussing any such proposals with the company.

Mr O’ Leary also warned on Wednesday that cuts at Bus Éireann could lead to wider industrial action in the transport sector.

He signalled industrial action could spread to the country’s railways which also form part of the broader CIÉ group.

He said he had been told by some rail workers that they would not tolerate seeing the wages of colleagues in the CIÉ bus companies decimated.

He said rail workers were not at present in dispute with their employer and he could not allow them to take industrial action.

However, he said he “was not in control of everyone who moved around the city in terms of trains and buses”.

Mr Noone said it would not be acceptable to his union for Bus Éireann not only to state there was no money for pay rises, but also that more cuts could be necessary.