Dublin light rail bidder agrees pre-entry union deal

In autumn 2001, Transdev, one of the bidders for the contract to operate a new light rail system in Dublin, agreed a pre-entry recognition deal with the SIPTU trade union, to take effect if Transdev's bid is successful. The deal includes an industrial peace arrangement.

A pre-entry union recognition deal was agreed in autumn 2001 between Ireland's largest trade, union, the Services Industrial Professional Technical Union (SIPTU), and the French-based transport company Transdev, one of the five bidders to operate Dublin's new LUAS light rail transport system. The deal provides for a binding commitment to industrial peace, through a 'security of service' commitment and the introduction of a novel form of arbitration.

The existence of an industrial peace clause is important because under the terms of the LUAS contract, service is to be provided without interruption. If the service is affected by industrial action, the light rail operating company could incur severe financial penalties – and possibly termination of the contract.

The existing state-owned public transport operator, Irish Transport System (Córas Iompair Éireann, CIE) – which runs all rail, city bus and most inter-urban bus services in the Irish Republic – has been dogged with industrial relations difficulties over the years (IE0004149F). If Transdev wins the LUAS contract, the deal with SIPTU would be a unique departure in the industrial relations of the Irish public transport sector.

The industrial peace guarantee is underpinned by a three-member arbitration panel selected by both parties. This panel would make decisions on a consensus basis, but would be able to take decisions on a majority basis if necessary, as a last resort. Both union and management agree to accept the arbitration panel's findings.

However, many decisions may not go to arbitration, as there would be an extensive mediation process before the arbitration panel is called in. At the same time, the prospect of a binding arbitration process would be likely to spur the parties to reach agreement at mediation level.

A bonus of 5% would be paid to the workers because of the existence of this particular dispute resolution mechanism.

The SIPTU/Transdev deal also provides for a employee/union partnership forum, which would meet every two months and would include six employee representatives, elected in a secret ballot.

The deal also allows random drug and alcohol testing. It would be a condition of employment that employees would cooperate with such testing procedures. This testing is to be done on a random and fair basis, with proper respect for employee privacy - and is designed solely to ensure compliance with health and safety regulations.