DUBLIN BUS HAS announced an attempt to slash €15million from its annual operating costs, including a reduction in overtime and holiday allowances for staff.
The semi-State company said the savings were necessary due to the ongoing recession and declining passenger numbers, which it said meant an annual revenue loss of €49million a year.
Under the proposals, employees will see their overtime and other premium payments reduced, as well as their allowance of annual leave. Management and clerical staff, meanwhile, will see an increase to their working week.
The company said it does not have “immediate” plans to reduce basic pay, but added that this was “dependent on successful completion of the plan and general economic and financial trends”.
The plan, which was revealed to unions yesterday, also includes changes to self-certified sick leave and the welfare benefit scheme. A spokesperson for Dublin Bus said:
Since the recession began we’ve been facing a very challenging financial position. We’ve done a lot of work, but unfortunately the recession is ongoing so we are looking at the terms and conditions of working arrangements as part of the plan.
It will not have any impact on customers, the company said in a statement.
Dublin Bus has already introduced cost-cutting measures including reductions in the size of its fleet and workforce. These have yielded savings of €58million annually, the company said.
However, it said another €15million in reductions is needed. The company said increased fuel costs, loss of advertising revenue thanks to the recession, and a decrease in the subvention it receives from the State have all contributed to its financial problems.
TheJournal.ie has contacted Siptu for comment.