SIPTU has pulled out of talks with CIE on the proposed introduction of a viability plan to save £30 million at Irish Rail.

The union has accused the company of not honouring existing agreements to employees and will not take part in further talks until more than 200 temporary workers are made permanent.

Unions and the company are currently engaged in negotiations at the three CIE subsidiaries - Irish Rail, Dublin Bus and Bus Eireann - regarding the introduction of viability plans to save £44 million. The plans play a crucial part in efforts to return the group to profitability.

Mr Tony Tobin, of SIPTU, told The Irish Times last night that a meeting on the issue of staffing yesterday had ended without agreement. He said the union was "extremely disappointed" with the company's response.

SIPTU is pressing for up to 250 temporary employees in Irish Rail to be staffed. He said the existing agreement is that employees who have worked for 12 months are staffed.

Mr Tobin claimed the company was refusing to honour the agreement. Such staff, he added, did not qualify for the pension scheme and certain company health benefits and were also finding it very difficult to get mortgages or loans because of their temporary status.

"If the company will not honour existing agreements, how can we trust them to honour new ones?" he said. More talks on the staffing will take place next week.

Mr Tobin said approximately 175 people in the civil engineering department were awaiting staffing, with the remainder in a variety of grades. They include drivers, ticket checkers and others. Meanwhile, it is understood that unions and management are close to agreeing terms of reference with independent consultants to cost two sets of viability proposals at Bus Eireann. The original plans drawn up for the company in 1995 envisage savings of £6 million at Bus Eireann. The unions have submitted their own proposals for cost saving at the subsidiary. These and the company's proposals will be assessed by Coopers & Lybrand. [SBX]

CIE is involved in two High Court cases which will be heard next month. They involve Ms Kay Mulrooney, a former director of the board and Mr Dermot O'Leary, former chairman. They have sought a judicial review against the former Minister for Transport, Energy and Communications, Mr Michael Lowry, Ireland and the Attorney General arising out of their departures from the board. See also page 7