CIE may axe 400 jobs amid mounting losses
Monday November 24 2008
'We are looking at all aspects of the customer base to see where savings can be made. The intention is to decide what measures will be taken'
Paul Melia
HUNDREDS of jobs could be lost in State transport operator CIE as the company faces losses of €131m next year.
Redundancies at Bus Eireann and the withdrawal of some services, garage closures and a pay freeze are all being considered as passenger numbers fall and the company comes under severe financial pressure.
The move comes after Iarnrod Eireann sought expressions of interest from staff who might consider taking a redundancy package.
Notices were placed in some work sections to see if people were interested in leaving. Union sources said the notices were placed on an annual basis.
But the move to cut jobs and row back on services comes as the Government embarks on intensive lobbying to encourage people to use public transport to get to work. If services are cut, it could force people back into their cars, adding to traffic gridlock across Ireland.
The company's bus services have been particularly hard hit by mounting fuel costs and losses caused by congestion adding to its financial woes.
Yesterday, a spokesman for CIE -- made up of Dublin Bus, Bus Eireann and Iarnrod Eireann -- confirmed that a review of costs was being carried out and that a series of recommendations would be made before Christmas. "We are looking at all aspects of the customer base to see where savings can be made," he said. "The intention is to decide what measures will be taken."
However, they refused to comment on a newspaper report outlining the extent of difficulties, beyond saying they would not "contradict" the figures in the report.
According to weekend reports, measures being considered which could save €45m a year include:
l Withdrawing 100 buses in the capital through reduced frequency on some routes, and withdrawal of services on lightly used routes.
l The release of up to 400 staff at Bus Eireann and the withdrawal of as many as 170 buses.
l The cancellation of more than 40 Bus Eireann services, with a reduction on up to 150 routes.
Fares
CIE is is projecting a loss of €131m in 2009, compared to losses of just €1.5m in 2007.
Two months ago, it sought a 20pc fare increase which is being considered by the Government, but it still plans on making dramatic cost savings to help stem losses.
If the fare increase is granted, the deficit will be reduced by €45m.
But the group will still have to trim costs, especially as bus passenger numbers are down by 4pc so far this year, while rail passengers are down by 1pc. Costs are projected to rise by €73m, or 10pc, across the group next year.
The newspaper also reported that the Government has been warned that the proposed service reductions on Bus Eireann were extensive and would have a significant impact across the country.
Iarnrod Eireann is expected to defer the introduction of new services, instead of cutting back on existing routes.
Increases in service frequencies on routes from Dublin to Limerick, Galway, Waterford and Wexford are likely to be deferred, and there may be a reduction in capacity on off-peak DART services in Dublin.
SIPTU said it was seeking a meeting with senior management to outline the extent of redundancies and other cost-cutting measures being sought.
