Trade union members in the State-owned CIÉ transport group will next week start voting on whether to accept proposals aimed at bringing to an end a lengthy saga over the future of their two pension schemes.
This week unions warned that without changes the entire group could collapse in a future economic downturn under the weight of pension liabilities which could reach up to €4 billion within eight years.
Writing in the recently published annual report, chairman Aidan Murphy said the CIÉ Group “has the largest pension deficit in the State”.
He said the cost of benefits were unaffordable and the risk inherent in the schemes, when allowance was made for the size of the liabilities relative to the economic value of the group, was too high.
Murphy said that pension reform had happened years ago in comparable semi-State schemes but efforts to do the same in the CIÉ group had been ongoing since 2018.
In that period there has been a lot of argument over who should be responsible for the pension bills: should the company, or the State as the shareholder be on the hook.
In the background several thousand former staff have not seen a pension increase in 17 years as the rows over the future of the schemes dragged on.
Ultimately union members will have to decide on whether it is likely that a Government could allow the collapse of the transport companies. Private sector companies already provide many bus services. But is it likely there would be much private sector interest in running the rail network?
Minister for Transport Darragh O’Brien was careful that while he was supportive of the move to resolve the issues, he was not offering any guarantee with respect to any obligation or liabilities of CIÉ and/or the CIÉ pension schemes.
But O’Brien will not be the only person in Government keeping a close eye on the vote at the CIÉ companies.
Minister for Public Expenditure Jack Chambers reminded Ged Nash of the Labour Party in a recent answer to a parliamentary question that under legislation and the code of practice for the governance of State bodies, he will also have to approve any move to amend or replace any existing pension scheme.
