Bord na Móna says 80 jobs at risk

Bord na Móna has said it is "reluctant to comment publicly" on the situation set to see approximately 1,500 of the company's workers balloted for industrial action by trade union SIPTU as a result of a dispute over pay rises. A statement released by the company said it would "prefer to conduct its business in face to face discussions". However, it did say some 80 jobs could be at risk if the pay rise sought by workers comes to pass. Last week SIPTU's Oliver McDonagh said the workers in question had been due a six percent rise under the Towards 2016 agreement, but a 3.5% pay rise was agreed in the Labour Court in May 2010. Further disagreement saw management and staff back in the Labour Relations Commission recently he said, and an offer of a 1.5% non-consolidated payment from Bord na Móna left workers with no option but to ballot. A statement from Bord na Móna confirmed that a series of meetings with unions to discuss the Labour Court ruling occurred, with Bord na Móna saying at these meetings that increasing pay rates by 3.5% in the economic crisis would undermine employment at the company in a very bleak time in the Irish economy. "It would lead to an increase in fixed costs which would need to be funded by reductions in costs," the statement explained. "Over the last five years the average number employed at Bord na Móna has increased by some 370. To fund a 3.5% increase in this manner could jeopardise some 80 jobs at the company." The statement said Bord na Móna outlined a "pay for productivity" offer to unions last October and took part in conciliation talks in recent weeks. "We wanted to work together with our employees on a solution which would allow them to share in the success of the company without having to put jobs and businesses at unavoidable risk," the statement said. "With this in mind, the company made a generous offer of an upfront payment of some €800 per employee and a three percent per annum potential payment, some of which was guaranteed and some of which was dependent on reaching business targets. The group of unions refused to accept that some of the payment would be dependent on business targets and simply reiterated their demand for a 3.5% retrospective pay increase." The Bord na Móna statement concluded by saying the company was "very disappointed" unions rejected the proposal.