SIPTU has said its members will not accept unilateral pay cuts at Irish Water.
Following a government announcement that there would be no bonuses paid for 2013 and 2014 at the utility, the union tonight said it will reject any unilateral changes to the terms of employment of their members at Irish Water.
A spokesperson for Irish Water parent company Ervia confirmed that no payments will be made for either 2013 or 2014 until an independent review is completed.
However, SIPTU says the payment system in operation in Irish Water is a performance-based pay system - introduced in 2012 in Bord Gais.
Representatives from SIPTU and other unions will meet with the management of Ervia/Irish Water in Portlaoise tomorrow.
SIPTU represents 100 of the 400 directly employed workers in Irish Water.
The union says it will not accept that SIPTUs modestly paid members should have their terms of employment cancelled without agreement.
“This system was introduced in 2012 in Bord Gáis and reluctantly accepted by union members. The new collective agreement resulted in a reduction of €34 million in labour costs to the company,” says SIPTU Sector Organiser, Adrian Kane.
Kane says the performance-based pay system at Irish Water is not unusual in the private sector.
“The majority of SIPTU members transferred from Bord Gáis to Irish Water on the basis that they would receive payments in line with that agreement,” he said.
“SIPTU would much prefer a return to the original pay system that operated in Bord Gáis before 2012. The union will not accept that our modestly paid members should have their terms of employment cancelled without agreement.”
A statement from SIPTU said the union “does not defend the bonus culture for high earners” but warned that if the bonus freeze is not reversed “employees, who typically earn between €25,000 and €45,000, stand to lose a significant portion of their earnings.”
Earlier today an Ervia spokesperson said: “The decision reflects the fact that at the end of 2014 Irish Water has not yet earned sufficient public confidence. We made this decision in the best interests of Irish Water and the wider Ervia group to show we are listening to the public.”
