Ministers: Up to unions and Bus Éireann to solve crisis

The Government has moved to distance itself from the escalating funding crisis within Bus Éireann, claiming it is a matter for the company and unions to resolve.

Public Expenditure and Reform Minister Paschal Donohoe has said the subvention for Public Service Obligation (PSO) routes has already been increased and the problem lies with the company’s commercial arm.

Bus Éireann is under major financial strain and could go out of business within two years if a plan to drastically cut costs is not agreed. it is losing €6m a year, mainly due to increased competition from private operators on its commercial Expressway routes.

It announced plans for significant cuts to allowances, premium payments, and temporary staff which was met with anger from unions.

Bus Éireann had promised annual pay rises of around 2% for four years if workers accepted the new measures, but this offer was roundly rejected by the National Bus and Rail Union and Siptu.

Mr Donohoe said it would be up to unions and management to hammer out a deal.

“Investment in Bus Éireann subvention has already gone up over the last number of years and union and management will have to resolve this inside the labour institutions,” he said.

His comments come after Transport Minister Shane Ross also said that it is up to management and union representatives to come up with a resolution.

Mr Donohoe also ruled out introducing a charge to those who currently avail of the Free Travel Scheme as a way of propping up the company’s finances.

“Any change that would happen to the Free Travel Scheme, which we have said is not going to happen, would be minimal in terms of the contribution that it could make to the challenges that the Expressway service is facing,” he said. “Let’s be clear, we are not going to change that.”

Fianna Fáil’s Darragh O’Brien, while recognising that Mr Ross “doesn’t have an easy job”, said the subvention should be looked at in the “overall context of how Bus Éireann operates”.

“We don’t run Bus Éireann as a country to make money, it’s a public service that is there,” said Mr O’Brien

Mr Donohoe said Government subvention had increased to over €40m.

“Missing in this debate is the fact that subvention has already been increased. It increased by 17% in 2016 verses 2015,” he told RTE’s The Week in Politics.

Asked whether it would be raise again, he said: “That’s a matter for Minister Ross.”

Meanwhile, Unite trade union, which represents craft workers in Bus Éireann, has become the latest union to tell the company it will not attend meetings with management tomorrow until the threat of forced implementation of cost-cutting proposals is withdrawn.

Unite’s regional officer, Willie Quigley, said unions representing workers in Bus Éireann will be meeting in its offices on Thursday to discuss “this growing crisis and how best to defend our members”.

Unions say the proposed cuts — including overtime, premium payments and other allowances — would result in a 25% cut to staff earnings.