Collision course for unions, bus group

Bus Éireann and trade unions were on a collision course last night after workers criticised immediate cost-cutting measures introduced by the state-owned company, which includes a ban on unrostered overtime and an embargo on recruitment.

The company, which has forecast losses for last year of €8m and which could be insolvent within 18 months unless it turns around its financial position, issued the immediate actions to trade unions yesterday. Bus Éireann acting CEO Ray Hernan warned that further savings would be necessary.

In the accompanying letter Mr Hernan said “we are facing a very uncertain future” and that “a review of every cost line” was already underway.

He asked for full co-operation in implementing the immediate cost-saving measures, which include:

• Banning all non-essential or discretionary spending;
• All unplanned bus hire will no longer be sanctioned;
• A general ban on all unplanned overtime;
• A recruitment ban;
• Other measures including no carryover of annual leave, fuel efficiency targets and changes to flexitime arrangements.

The union response was swift, with the general secretary of the National Bus and Rail Union (NBRU), Dermot O’Leary, saying: “Our members at Bus Éireann will not be co-operating with any changes to current terms and conditions or work practices in the absence of an agreed forum being convened to discuss all the issues which have contributed to the crisis at Expressway: The notion that tinkering around the edges of staff entitlements will resolve this problem is simply ludicrous and will only serve to further antagonise workers at Bus Éireann.”

A report by consultants Grant Thornton had recommended the ditching of the Expressway service, but the company has since signalled that it plans on retaining it while making changes to ensure it is viable.

Mr O’Leary had warned that any cuts to ad hoc overtime would almost certainly impact on services, while Siptu hit out at what it called the “threat” hanging over the free travel scheme, with the Department of Social Protection refusing to provide extra funding for transport providers to cover the costs of the public service.

Irish Rural Link also warned that the elderly and vulnerable will bear the brunt of any attempts to trim Bus Éireann services if the company has to restructure because of its financial woes.

Seamus Boland, CEO of Irish Rural Link, said: “As usual when companies providing a nationwide service or supplying goods lose money, there is a knee-jerk reaction to cut those provided in areas of scattered population.”

Mr O’Leary claimed the “negative intervention of the regulator [National Transport Authority] over recent years” had, despite protestations to the contrary, led to an oversupply of seat capacity and had adversely affected Expressway services.

“Forcing staff into bringing the entire service to a shuddering halt by incrementally cutting terms and conditions is not conducive to finding a resolution to this crisis and is tantamount to a dereliction of the political responsibility which this situation demands,” he added.