Bus Eireann. Business Downturn. Cost Recovery Plan. Clerical Staff

Transcription

1 Bus Eireann Business Downturn Cost Recovery Plan Clerical Staff 1

2 Bus Éireann Business Downturn: Cost Recovery Plan Clerical Staff Since 2000 Bus Éireann has expanded its network of services in line with customer demand, has increased passenger numbers and has been largely profitable. However, as a result of the current unprecedented global economic downturn the Company has experienced a sharp fall in customer numbers. Factors such as: - Less people being employed, Less retail sales and less shoppers, Reduction in tourists travelling to and around Ireland, and Less economic activity have contributed to this reduction in passenger numbers. The general economic downturn has affected all business worldwide including Ireland and Bus Éireann s business also. Our revenues declined in 2008 with a 4% reduction in passenger numbers compared to 2007 and with the predicted further significant reduction in demand during 2009 now becoming a reality, the current cost base must be adjusted in line with this declining demand. There are other factors during 2009 which are putting Bus Éireann under even more severe financial pressure such as the Supplementary Exchequer Budget further reducing the total CIE subvention by 10 million, the loss of the Fuel Rebate for the full year amounting to 10 million and the increase in Excise Duty on diesel fuel of 5 cent per litre which will cost Bus Éireann a further 1.5 million in a full year. Added to this is the continuing application by our competitors for licenses to the Department of Transport and the issuing of them to cherry pick the best parts of our Expressway services. As a result a Cost Recovery Plan has been prepared to rectify the financial situation and bring expenditure more into line with revenue and this Plan must be implemented forthwith in order to achieve a breakeven position in Every effort will be made to preserve as many services for our customers and maintain employment as much as possible. 2

3 The sections of the Cost Recovery Plan which affect clerical staff are as follows:- 1. Service Reductions Cuts in services and curtailments in services across the Network will take place which involves a reduction of 163 vehicles in the Company s road passenger fleet levels and consequent reductions of approximately 300 positions across all staff groupings. The reduction in fleet levels for each depot/garage is as follows:- Dublin 29 Dundalk 17 Cork 30 Waterford 14 Limerick 17 Tralee 10 Galway 20 Athlone 6 Sligo 8 Ballina 9 Stranorlar 3 Total Pay Because of Bus Eireann s current financial position, the Company has no option but to defer the pay terms of Towards 2016: Review and Transitional Agreement (Module 2) i.e. 3.5% from 1 st April, 2009 and 2.5% from 1 st October, This, therefore, involves a pay freeze. Twelve (12) months from the date of this agreement there will be a complete and comprehensive review of the Company s financial position, the cost savings achieved and the implementation of the cost reduction measures and in light of this the above situation will be reviewed. 3

4 3. Overtime Working Because of the current financial position arrangements will be made in each Region to minimise the amount of overtime necessary to be worked for all clerical staff and this includes clerical staff in Schools Transport Offices. 4. Uncertified Illness The uncertified illness scheme is a cost to the Company which the Company can no longer afford in these challenging times; however, having considered the points raised by the Trade Unions the Company has re-viewed its original position and, consequently, any illness absence of any duration in excess of four single days self-certified in a calendar year will have to be covered by a doctor s medical certificate under the Welfare Scheme. Self-certification can only apply in respect of a Saturday on no more than in one of the four days. The uncertified illness scheme will be reviewed as part of the overall review after twelve (12) months (referred to in Clause 2). 5. Ban on Recruitment Because of the necessity to reduce staffing levels arising from the reduced fleet levels/service reductions and reduced customer numbers, there will be a general ban on recruitment from outside the organisation for the foreseeable future. Where it is essential that a position be filled, every effort will be made to fill it from within the organization. Only in exceptional circumstances where there is a requirement for particular expertise will external recruitment be considered. 6. Compensation for Loss of Earnings Again, because of the current financial position, when changes in work patterns/hours of work occur which result in loss of earnings, claims for compensation for loss of earnings cannot be considered. 7. Disturbance Allowances Disturbance allowances will be paid to any staff members who accept transfer to other depots as a result of the restructuring of services, as outlined in this document, in the following circumstances: Where the distance involved between the two depots is over 50 kilometres and under 80 kilometres, a gross lump sum of 2,000 will be paid. 4

5 Where the distance involved between the two depots is over 80 kilometres, a gross lump sum of 4,000 will be paid. 8. Expenses All meal and lodging allowances will be capped at current rates for a two year period. 9. Total Flexibilities There will be total and unlimited flexibilities among the clerical staff including staff working in schools transport offices. This includes cooperation with the development of new ticketing arrangements, electronic payments and other efficiency initiatives. All Functions/Regions will be self relieving with tasks to be undertaken by staff as necessary. The requirement for total flexibilities formed part of previous agreements with Clerical Staff. It is included in this document to highlight the continued importance of flexibility, particularly in light of the Company s current financial difficulties and to reflect the fact that technological change is an on-going process. However having noted the points raised by the trade Unions the Company now proposes that where staff undertake the duties of a higher graded position, superior duty will be paid where the employee carries out all the duties of the superior staff whom s/he is replacing and the entitlement to superior duty will only arise when the duties are carried out for more than three (3) weeks. There will be no superior duty payment for the first three (3) weeks. Where staff undertake the duties of a lower graded position status type issues will not be a factor. All duties will be undertaken as required. The conditions attaching to the payment of superior duty will be reviewed as part of the overall review after twelve (12) months (referred to in Clause 2). 10. Review of Processes and Elimination of Non-Essential Tasks This includes all aspects of the Company s business including the School Transport Scheme. Particular regard must be had for the fact that the Department of Education and Science is the Company s biggest single customer. With a reduced level of clerical staff, it is essential that the tasks required to be carried out are done in the most cost effective manner. 5

6 All tasks will be examined with a view to increasing efficiencies and eliminating those that are not essential, particularly in light of the introduction of electronic clocking-in for maintenance staff, the automation of the collection of data on fuel, the automation of tachographs, SAP, the extension of Core payroll to all staff and the interface of Microbus with payroll. This is a non-exhaustive list as with continuing technological developments there will be ongoing reviews of processes with a view to the elimination of non-essential tasks. 11. Flexibilities with Other Categories It is essential that work at all levels is performed in the most cost effective way possible. This may involve certain grades or categories of staff undertaking tasks of a different category. This may involve the permanent transfer of tasks such as clerical staff assuming some of the administrative duties of Inspectors and vice versa. This includes such tasks as issuing drivers boards and drivers duties, microbus, AVL, SAP and analysis and follows up on operational information. What is required may vary from location to location. It may also involve duties being undertaken on a temporary basis, for example, drivers may be engaged in giving out customer information. As a similar clause forms part of the Cost Recovery Plan for Inspectors, the provisions of this clause will be implemented in conjunction with agreement being finalised with the inspectors. 12. Centralisation of Administrative Tasks Administrative work will continue to be consolidated into the five regions from the nine areas giving greater economies of scale and reduce staffing levels overall. 13. Closure/Reduced Opening Hours Travel Centres, Cash Offices There are a number of Travel Centres throughout the country. There is scope to reduce the staff levels and to achieve further efficiencies. It is proposed to reduce the opening hours of the larger ones (Dublin, Waterford, Limerick, Galway and Cork) and close the smaller ones. Opening hours and staffing levels in Cash Offices are also being reduced and amalgamation of some will be progressed. 6

7 14. Clerical Staff Reductions Central Services 5 East 5 South 5 South-West 5 West 3 North-West 2 Total 25 Restructuring and re-allocation of work amongst Clerical Staff as a result of staff leaving on voluntary severance will be discussed and agreed locally. Where agreement is not reached locally the matter will be reviewed centrally within six weeks of the issue being raised. 15. Voluntary Severance Bus Éireann s financial situation makes the funding of Voluntary Severance very difficult however clerical staff interested in Voluntary Severance should submit expressions of interest to their Function Head, Regional Manager or Regional Engineer. No obligation on either party is created by an expression of interest. Expressions of interest can only be considered on a strict business case basis and the savings made must be in line with position saved. 16. On-going Economic Outlook Because of the on-going global economic downturn including the downturn in the domestic economy, which could affect Bus Eireann s market environment, etc., the Company will have to continually review the situation and may have to consider further cost-reducing measures in addition to the current plan. Within School Transport there is a constant requirement to increase efficiency and to provide a value for money service on behalf of the Department of Education and Science. As part of this process there are currently two independent reviews taking place, examining all school transport costs and day-to-day operations. These reviews are critical and will have implications for the future of School Transport. Human Resources Department, 29 th April,