Workers at the commercial semi state transport group are set to ballot on proposals to deal with sustainability issues with two schemes.
This followed talks between the CIÉ Group and unions to ensure the future of the schemes without cutting benefits and paying “long overdue” increases for pensioners, according to the proposal document.
The increases will apply to the first €30,000 of their pensions.
Those who retired on or before the end of 2020 will get a 5pc increase, those who retired on or before the end of 2021 will get 4pc, and those who retired before the end of 2022 will get 3pc.
Those who have not yet retired will benefit from a “pension increase protocol” that the document says will be based on “objective criteria”.
The proposal says a “best in class” defined contribution scheme will be set up for new employees “comparable with other commercial semi-states”.
Crucially, there will be no change to the agreed pension entitlements of all staff prior to the date of implementation of the proposal.
Another centrepiece of the deal is a clause that says the government is supportive of a proposal “to protect the benefits for current employees within the existing schemes, and this will be confirmed in a letter of support”.
Labour Party spokesperson on transport, Ciarán Ahern, said the announcement is a significant breakthrough for more than 2,600 CIE pensioners who have not had an increase for 17 years.
“I’ve had the opportunity to meet with and advocate for these pensioners, and I’ve heard first hand the hardship many of them have gone through as the value of their pension has been eaten into over the years,” he said.
He said it is utterly unjust that while pensions and pay have increased for other public servants and retired employees of semi-state bodies in line with staff pay increases and rising costs of living, retired CIÉ workers have been left “high and dry”.
“Blocking pension increases for these workers who have made massive contributions to our public transport infrastructure and network is completely unacceptable,” he said.
“It sends a damaging message that some workers are more valued than others.”
Mr Ahern said it is understood that the CIE group, which includes Irish Rail, Dublin Bus and Bus Éireann, will provide €30m to fund the deal.
Transport Minister Darragh O’Brien welcomed constructive engagement between unions and CIÉ management on the issue.
“It’s a strong example of proactive and inclusive dialogue that prioritises long-term outcomes for employees and pensioners alike,” he said. “I’d like to thank all parties involved for their positive engagements.”
CIÉ Group said in a statement that it had reached a negotiated agreement on its pension schemes with the Trade Union Group.
It said a negotiated position was reached on Wednesday night, which addresses the agenda set out by both parties.
“The talks centred on the concerns of CIÉ regarding the inherent risk and sustainability of both schemes, whilst also addressing the TUG agenda that there is no change to the accrued and future benefits of current members,” it said.
It said CIÉ and the union group shared the aim of providing a long overdue increase for eligible CIÉ pensioners.
The group said the central pillars of the proposal are to maintain promised benefits for all members of CIÉ pension schemes and an increase for eligible pensioners of up to 5pc.
It said a comprehensive consultation process with all stakeholders will take place in the coming weeks, followed by a ballot on the proposal by the trade union group.
John Murphy, transport sector organiser at Siptu, said there had been a threat of industrial action previously over CIÉ board proposals relating to the schemes.
He said the new proposals would “hopefully” resolve a long-running dispute over the schemes and put them on a solid footing for the future.
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