Bus Éireann boss tells committee he is not scaremongering about difficulties
The acting chief executive of Bus Éireann says he's not scaremongering when he says the entire company could go out of business.
Ray Hernan's appearing before the Oireachtas Transport Committee after the bus operator warned it risks going insolvent.
He's warned that it's not just the commercial Expressway service that is a problem and that cost efficiencies must be found across the business.
In his opening remarks, Mr Hernan says he needs the support of staff or there will be no jobs at all: "I wish to make it clear that my management team and I are not bluntly targeting our staff to fix the financial problems that exist within our organisation.
"As stated earlier, all structures and all cost drivers, including existing management structures are being challenged and reviewed."
Bus Éireann workers say they will not take a wage cut to pay for other people's mistakes.
Unions have made a 21% pay claim, and said the company's cost-cutting plan would result in a 30% wage cut for their members.
Their union the NBRU is refusing to enter talks with the transport firm and is blaming Government policies for their financial problems.
General Secretary with the NBRU Dermot O' Leary disputed the figures produced by an external report.
He said: "It's hard for workers to understand that two weeks ago they were told losses were about €5.6m, to now be told they're €10m…But at this point there's no point arguing about figures."
The acting CEO of Bus Éireann will face questions from TDs and Senators today about the current financial crisis facing the company.
Ray Hernan will appear before an Oireachtas committee where the future of the Expressway Service and the rural transport programme will also be discussed.
Bus Éireann suffered losses of €8m last year and unions have pledged to resist proposed cost-cutting measures put forward by the company.
Mr Hernan will tell members of the Oireachtas Transport Committee that anticipated losses of up to €9m in 2016 will mean its total reserves will be depleted to €7m, “less than one year’s reserves at the current run rate of losses”.
“To do nothing would mean all of the company, not just Expressway, will go out of business and, as a consequence, all jobs will be lost,” he will tell the committee. “This is not scaremongering; this is stark reality of what this organisation now faces.”
CEO of Irish Rural Link Seamus Boland will also speak at today's hearing.
He said: "We will be calling on the Oireachtas committee to use its influence through the Minister for Transport to ensure any routes dropped by Bus Éireann (have a replacement) transport service provided."
The Labour Court has refused to intervene in the dispute.
The company had sought a hearing at the Labour Court after unions overwhelmingly rejected cost saving proposals which, they argued, would have meant cuts to their members’ earnings of up to 30% through reductions in premium and overtime payments and other allowances — the company proposals also included a 2% average raise to basic pay.
The sides had already been at the Labour Court on December 6 to discuss a pay claim by the unions in excess of 20%. The company said the court indicated at that point that it could not deal with that claim until a “more detailed plan” was made available by the company.
