Staff were informed this week that Transdev was not selected as the preferred bidder for the new Luas operations and maintenance contract, understood to be worth about €1.75bn.
It is understood that a joint venture involving French transport operator Keolis has been selected as the preferred bidder to take over the service.
The service has been operated by Transdev since the Luas commenced in 2004, with the new contractor due to take over later this year following the completion of procurement processes.
A mandatory standstill period is now under way before the contract can be formally finalised.
Siptu transport sector organiser John Murphy said workers would transfer to the incoming operator under TUPE regulations, which protect employees’ existing terms and conditions when a contract changes hands.
“There is a section of employees which guarantees where a new contractor takes over an existing contract, they would inherit the staff at the same terms and conditions,” he said.
Mr Murphy said that while a new operator may choose to run the service in a different way, significant changes affecting pay or employment security are not expected.
“The new contractors may decide they want to operate in a slightly different fashion. So there may be some issues there, but we don’t expect the issues to be matters related to pay and security of employment,” he said.
Luas
Today’s News in 90 – Friday February 27
He added that any potential changes were more likely to relate to day-to-day operational matters rather than core employment rights.
“You might have rostering issues, day-to-day issues, but not significant changes we are not expecting,” he added.
The transfer of operations is not expected to take place until September, with the incoming contractor required to consult with staff and union representatives in advance.
“The incoming contractor are obliged to at least 30 days in advance consult with the staff and their representatives,” Mr Murphy said, adding that engagement could begin sooner but may not take place until later in the summer.
He said the announcement had come as a shock to many workers, given the length of time the current operator has run the Luas network.
“The staff themselves, including the management, are a bit shocked because the same company in different formats have been operating the Luas since it commenced,” he said.
“So there will be a level of uncertainty from staff thinking what’s going to happen, is there going to be changes?”
However, he said day-to-day operations were continuing as normal while the procurement process runs its course.
Mr Murphy noted that such contract changes are not unusual in the public transport sector, where large multinational operators regularly compete for major service tenders.
“Transdev and Keolis are huge multinational transport providers operating all around the world. This happens from time to time. They bid on similar contracts and sometimes one is successful and the other is not,” he said.
He added that any management changes are unlikely to be immediate, with continuity expected in the short term as the new operator assumes control of the service.
The National Transport Authority, Transdev and Keolis have been contacted for comment.