Irish Rail earmarks four routes for axe as it warns pay rise will push it 'towards insolvency'

Irish Rail has earmarked four routes that may be axed if a serious shortfall in its funding is not met and warned that a pay rise sought for staff would push it to the brink of insolvency this year.

In a submission to the Labour Court, seen by the Irish Independent, it says it is in a "perilous financial state" and spells out the options that could land on Transport Minister Shane Ross's desk in the near future - writes independent.ie.

These include closing routes with the largest State subvention per journey.

The document also reveals that the subsidy for the Limerick to Ballybrophy route is a massive €761.60 per passenger journey, compared with just 70 cent per journey on the Dart.

It said it could save €17.6m a year by shutting down Limerick to Ballybrophy, Limerick Junction to Waterford, Ennis to Athenry on the Limerick to Galway route and Gorey to Rosslare on the Dublin to Rosslare route.

It said the closure of the Limerick to Ballybrophy and Limerick Junction to Waterford lines would yield over €5m a year each.

The closure of the section of the Gorey to Rosslare route would bring in €4.4m, while shutting the Ennis to Athenry route would raise another €2.8m.

It said line closures are among the options mooted in a rail review by the company and the National Transport Authority if the Government does not produce the required funding.

The document also said that giving a 3.75pc a year pay rise sought by unions and making it retrospective to June 1 last year would "result in an immediate financial crisis".

Resists

It said if pay rises were not funded by extra productivity they would "have a catastrophic impact" on its financial situation.

Irish Rail said its accumulated losses since 2007 stand at €159m and it requires significant additional funding each year up to 2021, ranging from €90m to €158m a year.

The company's submission to the court is a supplementary one drawn up to give greater detail on its financial position as it resists a pay claim lodged by unions.

Unions initially lodged a claim for a 21pc wage increase over three years, although they later amended this to bring it into line with a 3.75pc pay hike that was awarded at Dublin Bus.

However, sources said that the final settlement for drivers might more closely mirror a cash boost of over 2pc a year on offer in the recent draft pay deal for the public sector that is currently being voted on.

This would bring the drivers' overall increase close to 3.75pc, as it would include a 1.15pc pay rise recently awarded by the court for past productivity measures.

The document says every route in the country needs State subvention.

"In relation to network reductions and line closures it should be noted that every rail service in the country requires subvention ranging from 70 cent per passenger journey on the Dart up to €761.60 on the Limerick to Ballybrophy line," it said.

In said in relation to the potential for line closures, it was listing the routes that have the largest subventions per journey.

The Rail Review said the earliest date for implementation of route closures would be the beginning of next year.

In a notice to members last week, unions for rail workers, Unite, TSSA, TEEU, Siptu and the NBRU told members they would pursue all avenues through State institutions to progress the pay claim.

"However, if we find that Iarnrod Éireann is not 'playing ball' then we will immediately seek a mandate for industrial action in order to force the company to 'do right by its own staff'," said the notice.

Read more news of the city site of Dublin here.

IrishRail payrise
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
1 view in october
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Society
National Slow Down day, an operation aimed at getting motorists to watch their speed on roads, got under way this morning. The 24-hour operation came into force at 7am and will continue until 7am tomorrow. It consists of high visibility speed enforcement in over 1,000 enforcement zones, as well as the delivery of a road safety message through the use of national, local and social media. The objective of the operation is to reduce the number of speed-relate...
Society
Housing and homeless agency Novas, which works with vulnerable individuals and families in Limerick and the mid-west, has said it helped over 4,500 people last year. In its annual report released today, it warns of the worrying trend that those becoming homeless are getting younger. Novas works with homeless people, and those at risk of becoming homeless, in Limerick, Kerry and Tipperary. The escalation of the homelessness crisis, coupled with more people...
Society
Irish baby name trends have taken a such a drastic turn in the past century some are becoming extinct, research has revealed. While some new entries gained traction in recent years, there are still timeless favourites that soar high on the popularity scale. The Ancestry.ie survey identified Adam and Harry as the favourite names among boys, seeing a 1,396% and 979% percentage increase since 1917 respectively. They are followed by Luke, Aidan and Mark to for...
Incidents
One person was hospitalised after a crash between a horse and carriage and a car overnight. Two fire engines and an ambulance were called after the crash at 2:30am on the junction of Eccles Street and Dorset Street. The man at the helm of the cart was brought to hospital although his injuries were not believed to be serious. The horse bolted for about 100 metres after being startled by the crash but was uninjured. The carriage however received heavy damage...
Society
A grieving Dublin woman said she is still in shock that her elderly mother died from spilling a cup of tea. Daphne Anderson (91) - originally from Glasnevin - died from sepsis, which she contracted in hospital while being treated for scalding injuries. Daphne's daughter Audrey told The Herald that her mother had been fit and active prior to the injury. She said: "My mother was fit and in good health. I can't believe that spilling a cup of tea could have ki...
Society
Passengers were left frustrated at the weekend as Aer Lingus was forced to cancel two flights at late notice. People hoping to fly to JFK Airport in New York on Saturday afternoon were angered when the flight was cancelled. Aer Lingus flight EI109 was due to leave Dublin for JFK at 4:10pm but was cancelled just hours before. Many holiday-makers were sat in the airport at the time waiting for information when the news broke the flight would not be in operat...
Incidents
Vandals who set fire to two taxis over the past four days in Crumlin have been condemned as "scumbags". One cab was burnt out on Friday night, followed by another this morning. The Dublin Taxi Drivers Facebook page shared images of the destroyed vehicles this afternoon and urged people in the area to be aware of any suspicious behaviour. In the post, the group wrote: "Two taxis burnt down in Crumlin, Friday night and one this morning on Sundrive road! "Be...
Society
A society in a Dublin college has been suspended from all social activity for a semester after videos emerged of members getting naked and partaking in "frat style games". DCU's Accounting and Finance Society hosted an election for their first year reps in which students were allegedly performing "nude acts" as well as being told to complete "challenges". In a statement tonight, the society said they will "ensure this does not happen again" and apologised...
Society
Despite the potential operation, Terry claimed that she is not expected to be given accommodation for at least another six months. A former soldier who is homeless and has been living in her car in Dublin has revealed she will be bed-bound for five weeks after an upcoming operation Terry O’Reilly said last week that she has been living in her car in Shankill for more than a year. The 34-year-old has now revealed that she is facing an operation to address n...