A lengthy strike resulting in the orderly wind-up of the State- owned Dublin Bus is one possible outcome in the absence of agreement on cost-saving plans for the company, a new independent report suggests.
The report, carried out by former union official Noel Dowling and management consultant Ultan Courtney finds that the three-day strike at the transport company in August "damaged the reputation and revenues of Dublin Bus and did not resolve the issues between the parties".
The report says a further dispute would probably be more protracted, "only finishing when one or both sides has lost more than they have gained".
Investigation
Mr Dowling and Mr Courtney were appointed by a group comprising the Government, the Irish Congress of Trade Unions and the employers' body Ibec, to carry out an investigation into why Labour Court recommendations and clarifications about cost-saving proposals for Dublin Bus were consistently rejected by bus workers.
The report says that both union and management at Dublin Bus accepted that the company was in a financial crisis.
“All parties understand the implications for the company and its employees if the proposals and five-year plan are not successful. The company says it cannot continue as is and in the absence of an agreement with bus workers difficult decisions will have to be made.
“No one knew with any certainty what decision will be made but all the parties accepted that the risk is that an imposed solution will be worse than an agreed one.”
The report says the parties were frank and open in talking about the potential scenarios that could arise in the absence of an agreement such as a lengthy strike resulting in an orderly closure of Dublin Bus.
Options
"Other scenarios raised included Dublin Bus seeking the protection of examinership or being placed in receivership by its creditors. The fast-tracking of privatisation was also recognised as an option for Government as was the extension of the FEMPI-style (financial emergency) legislation to semi-state companies.
“Some workers have told us that they do not believe any of these scenarios will happen in any circumstances. Others said that this Government will make the difficult decisions and the only real issue is what input bus drivers had into the final outcome. Most accepted that in the absence of a voluntary agreement between the parties that they would have little or no input into the final decision.”
The report says that the principal and overriding reason for workers rejecting the Labour Court recommendation on cost-saving measures was the complete lack of trust in the word of the company.
“This mistrust is based on the fact that major concessions by drivers in at least two previous productivity/cost-cutting agreements failed to resolve the company’s financial crises despite management’s assurances to the contrary and are now followed by yet another cost-cutting exercise.”
"Management acknowledged that this has created mistrust but point to the unforeseen consequences of the fallout from the . . . financial crisis, and the resulting reduction in Dublin Bus Government subvention across the CIÉ companies and the dramatic fall (up to 2012) in passenger journeys."
Proposals
The report says that the current proposals represent "the best that can be achieved in the current financial circumstances". It says any further concessions "would fatally undermine the company's cost-saving plan".
However. the report sets out a number of operational changes to address many of the drivers’ concerns which were identified as contributing to the rejection of the previous ballots.
