No strikesingle-union deal at Dublin’s new tram system

In autumn 2003, the Services, Industrial, Professional and Technical Union (SIPTU) negotiated a single-union, closed-shop agreement with the Connex company on behalf of workers at Dublin’s new tram system, LUAS, which is set to commence operations in 2004.

Ireland’s largest trade union, the Services, Industrial, Professional and Technical Union (SIPTU) has negotiated a pre-entry closed-shop deal with Connex, the multinational rail operator, on behalf of the workers soon to be recruited to operate Dublin’s new tram system, LUAS, when it starts operations in late 2004 (IE0111202N).

The Connex/SIPTU pre-entry agreement, announced in autumn 2003, includes a rigid 'peace' clause in order to meet the strict condition of the Connex contract with the Department of Transport that the service must be provided without any form of disruption. Failure to meet this requirement will result in severe financial penalties for the company, even extending to a possible loss of the contract. Because of these strict performance conditions, the agreement also rules out any form of industrial action at any time, stating: 'it is agreed that there will be no industrial action of any form during the lifetime of this agreement.' This definition includes any disruption such as work-to-rules or 'go slows'. The agreement states that 'any form of industrial action will lead to immediate removal from the payroll and could render any employee involved in such action liable to summary dismissal.'

Connex can earn a bonus if it meets detailed service targets and has agreed to pay out an employee bonus of up to 5% of pay if 'continuity of service'- ie no disruption and good time-keeping and attendance - is provided by all employees.

Due to the strict 'no strike' rules, any union-management problems will be referred to an independent three-member panel and its recommendations will be binding on both sides. There is also to be an annual audit of the relationship between the company and SIPTU.

SIPTU has agreed a basic starting salary of EUR 29,000 per year for tram drivers. with annual increments of between 3% and 7.5%. These are higher than current starting rates for drivers in Dublin’s main state-owned bus operator, Dublin Bus. However, the rates are below the pay scales paid to drivers at Dublin’s rapid rail system, the DART. Connex plans to hire over 100 tram drivers for Dublin's two new tram lines, which are running two years behind schedule.

The union deal also covers customer service officers (CSOs) and traffic regulators (TRs) who will control the tram movements. The CSO pay rates will start at EUR 25,000 a year.

As Connex's contract with the Department of Transport is tied to the consumer prices index, it has told SIPTU that future pay rises will have to be capped at the inflation rate. The union, however, is likely to seek payment of any future national wage agreements and this could be a problem as such wage deals may exceed the inflation rate.

The single-union deal provides SIPTU with a closed shop and it will be a condition of their employment that LUAS staff must become SIPTU members. They must also remain members of SIPTU for the duration of their employment with the company, a stipulation that rules out any transfer to another union even under the strict rules governing inter-union transfers between affiliates of the Irish Congress of Trade Unions (ICTU) (IE0106238N). The inclusion of such a strong 'handcuff' clause may have been prompted by the fact that SIPTU 'lost' around 1,400 cabin crew members at the Aer Lingus airline to the Irish Municipal Public and Civil Trade Union (IMPACT) in 2000 (IE0011223N). The new agreement will also prevent the rival National Bus and Rail Union (NBRU) from recruiting LUAS staff.

An employee-management information and consultation forum is to meet every two months to discuss operational and service issues. Connex has also promised a defined-contribution pension scheme, with workers and the company each paying in 5% of salary.

The agreement was negotiated by Noel Dowling, the SIPTU national industrial organiser, Liam Doherty of the Irish Business and Employers Confederation (IBEC) and Connex management.