CIE has told its unions it is not prepared to pay the latest pay rise due to its 10,700 workers under the Programme for Competitiveness and Work until agreement is reached on its plan to cut costs by £44 million.
The CIE group of unions is meeting today to discuss the situation. It is expected to seek third party arbitration, but some unions are understood to be pressing for immediate industrial action.
At a meeting with the unions yesterday, the CIE chairman Mr Brian Joyce and its chief executive, Mr Michael McDonnell are understood to have told them the company wanted to reach agreement on its viability plan by March 31st, 1997.
If this deadline was met the company would be prepared to pay the 2.5 per cent pay rise due last week, with full backdating. Union sources said Mr Joyce told them the board could not afford to pay the PCW increases until progress was made on the viability plan.
After the meeting the secretary of the CIE group of unions, Mr Hugh Geraghty, said the company's position was unacceptable to the workforce. It had an obligation to pay all PCW increases due. Talks on the viability plan could not begin until the money was paid.
The SIPTU rail representative, Mr Tony Tobin, said the board was making a fundamental mistake if it thought it could make payment of PCW increases dependent on progress in talks on the viability plan.
The general secretary of the National Bus and Rail Workers Union, Mr Peter Bunting, said the Government, as a PCW signatory, should provide CIE with the funds to meet its pay obligations under the agreement.
A CIE spokesman said the discussions were confidential.