Long-running industrial relations problems, with the refusal by unions to accept reforms, means the Irish Government-owned state-run Bus Éireann has warned it faces insolvency.
The company cost structure is inefficient with drivers on average being paid for 9.4 hours per day (1.6 hours of this at overtime premium rates) when they only drive for 5.5 hours on scheduled services. “The taxpayer is paying excessively for the services currently provided,” says Bus Éireann
The company has attempted to negotiate with the unions and has put “every conceivable issue on the table without pre-conditions” in an effort to address the financial crisis and ensure longer-term competitiveness.
The unions response has been to refuse to negotiate any change to terms and conditions, insist on a pay rise and seek compensation for staff who may have had a reduction in overtime earnings over the last few weeks, adds Bus Éireann
“What is clear at this stage is that the unions have no intention of reaching an agreement which will address the financial crisis.
“At current run rates of losses, the company could be insolvent by May.”
It says immediate reductions in cost and improved efficiency are “absolutely necessary” to address the financial crisis.
These initiatives must result in payroll savings of €12m now.
“Due to the perilous state of the Company’s finances and the failure to reach agreement with unions at the Workplace Relations Committee last week, the Board of Bus Éireann considered the matter in detail at its meeting today (27 February) and approved proposals for immediate cost savings to be implemented from 6 March.
“These measures are vital to ensure that the Company remains solvent, and can continue to trade as a going concern.”
