You are:

News

Return to news listings

CIE proposals for cost reductions

3 March 2014

Please see below a copy of the CIE holding company proposals for cost reductions. These proposals were put forward at the meeting held 03/03/2014.

 

During the meeting we requested that the company supply us with the relevant accounts for the company from 2009. The company indicated that they sought savings of around €0.5 million per annum as part of the cost reduction plan.

We also have requested further information around the issues:

· use of contractors and outsourcing of other functions within the organization

· Value of savings on the reduction of staffing levels via VS

· Non-payroll savings achieved

· Revenue figures for Property and Tours

· The amount of the savings projected against the items listed in the cost reduction proposals

We have clearly stated to the organization that we are not in agreement on their proposals and at the very least we would require the above information first before any form of negotiations could take place. The company has committed to providing us this information prior to the next scheduled meeting for 21 March 2014.

Please take the time to read through the proposals and provide any feedback to one of the following members of the TSSA negotiating panel or the TSSA office directly:

TSSA CIE Negotiation Panel:

Sinead Killen, Property

Catherine O’Reilly, Solicitors

Enda Kennedy, Tours

David Cleary, Tours

 

 

 

CIE Holding Company

Proposal for Cost Reductions

March, 2014

 

1. Introduction

 

The C.I.E. Holding Company provides a range of services such as, legal, liability and information technology to the operating companies in the C.I.E. Group. There are also a number of Group functions vested in the Holding Company namely, C.I.E. Tours International, Group Property and the pension and welfare schemes.

A large element of the costs for the provision of central services is charged to the operating companies. Over the past number of years the operating companies have all been engaged in painful cost recovery programmes to address the serious decline in revenue which occurred as a consequence the economic downturn of 2008. In addition, unfortunately, the Government subvention has also been significantly reduced over this period for well documented reasons.

Against this background it is essential that staff in the Holding Company make a contribution towards achieving cost savings in line with their colleagues in the operating companies.

The total Holding Company payroll cost for 2013 was €13.8m. This excludes employer pension costs.

2. Payroll Reductions

 

The Company is proposing that payroll reductions as outlined below will be implemented with effect from 1st April, 2014. These will be achieved by reducing basic pay each pay period by the appropriate amount. The “pensionable salary” will remain unchanged.

Foregoing of Gross Pay

 

Up to €56,000.00 a foregoing gross pay of 1.7% of basic pay.

Between €56,000.00 and up to €61,999.00 a foregoing gross pay of 2.2% of basic pay

Between €62,000.00 and up to €74,999.00 a foregoing gross pay of 3.3% of basic pay

Between €75,000.00 and up to €79,999.00 a foregoing gross pay of 3.6% of basic pay

Between €80,000.00 and up to €94,999.00 a foregoing gross pay of 4.1% of basic pay

Between €95,000.00 and up to €99,999.00 a foregoing gross pay of 5.1% of basic pay

Over €100,000 a forgoing of gross pay of 6.1% of basic pay

These pay reductions will remain in place for a period of 28 months from the date of implementation following which the reductions will be reduced by 50% to run for a further eight months.

3. Staff Numbers

 

Where possible the reduction in staff numbers will continue. This may be achieved through natural wastage and/or voluntary severance.

4. Other Measures

 

- With effect from 1st January, 2014 annual leave entitlement from that date will be reduced by three days for executive staff and two days for clerical staff.

- With effect from 1st January, 2014 the number of self certified days sick days will be reduced from the current seven per annum to three per annum.

5. Summary and Conclusion

 

These measures are designed to reduce the overall Holding Company costs in line with the cost reduction programmes that have already been or are being implemented in the operating companies. The amounts charged to the companies in respect of the provision of central services form a significant portion of their expenditure.

In so far as the salary and annual leave reductions are concerned, these are temporary measures and will be restored to the pre-April, 2014 position.

Return to news listings

Join TSSA

 

 

Directory