Bus Éireann has told its employees and trade unions it intends to press ahead with a €5 million cost-cutting plan that will see changes to staff terms and conditions from May.
The move was recommended by the Labour Court back in February.
According to the Labour Court the company is in a 'precarious' financial situation - with the viability of the company under threat.
Bus Eireann had been facing annual losses of €11 million which were unsustainable.
Under the terms of the agreement overtime rates will be reduced, the working week for clerical staff will increase from 36 to 39 hours, shift rates will be cut and staff will loose three days annual leave over the next three years.
The Labour Court has recommended the following changes to terms and conditions which will now come into effect from May 12th:
- Reduction of overtime rates from 1.5 times to 1.25 times for first two hours of overtime and at 1.5 times thereafter
- Increase in the working week for clerical and executive staff from 36 hours to 39 hours
- Reduction in shift payment of 1/6th to 1/7th (if company’s financial situation improves significantly this will be reviewed in 2014 with a view to restoring the shift rates to current levels)
- Reduction in premium payments such as double time on Sundays to now be paid at 1.5 times
- Reduction in annual leave entitlement by 3 days for three years (2013, 2014, 2015)
- Reduction in self-certified sick leave from 4 to a maximum of 2 days per annum
- A range of allowance and expense payments will be reduced by 20%
It is estimated that these changes will deliver annual savings of approximately €5 million.
Since 2009 the company has reduced its cost base by over 17% cutting achieving savings of €30 million.
In June 2012, the company announced its business recovery plan with savings of €20 million targeted to bring the company back to profitability in 2013. Some €9 million of savings were to come from terms and conditions, and €11 million from operational cuts.
