Bus Éireann threatens pay cut unless staff agree to plan
Just three years after its last cost-cutting drive, the transport company is seeking €20m in savings, €9m of which it wants to generate through changes to the terms and conditions of its staff.
Bus Éireann says it is facing potential annual losses of €16m due a combination of factors including:
* A 20% drop in passenger numbers;
* New competitors who can “cherry-pick the best element of routes”;
* A €4m increase in fuel costs in 2012 alone;
* A 25% reduction in state subvention to the company, equal to €13m, over the past three years and further expected reductions.
A spokesman said: “This level of potential losses must be addressed in order to protect services and jobs and ensure the company can continue to invest in providing a quality service.
“In order to tackle this situation, the company’s five-year plan includes a range of measures to increase revenue and reduce costs through a combination of enhanced services, particularly on inter-city routes, on-going operational efficiencies, increased use of technology, and changes to employees’ terms and conditions.”
The company wants staff to accept a reduction in overtime and premium payments, changes to the existing sick pay arrangements, an increase in the working week for management and administrative staff, a reduction in annual leave, and a restructuring of expenses.
It is also offering workers the opportunity to avail of career breaks or a shorter working week.
The proposed changes came with a warning.
“Bus Éireann does not have any immediate plans to reduce basic wages or for redundancies, but this is dependent on successful completion of the plan,” the spokesman said, adding that while it would consult with staff and their unions, it wanted the plan finalised with unions by Aug 13.
Michael Faherty of the National Bus and Rail Union said: “There is absolutely no way we are in a position to negotiate any change to premium payments, overtime rates of pay, etc.”
Willie Noone of SIPTU said while his members’ basic pay would be protected, their actual pay would be reduced.
In 2009, Bus Éireann announced plans to make 322 of its 2,700 staff redundant and remove 150 buses from its 1,300-strong fleet.
Last week, Iarnród Éireann announced it was seeking 450 redundancies. Dublin Bus management and unions are to meet tomorrow. It is expected further savings will be sought.
