Bus Eireann to proceed with cost saving measures
Company in a “precarious financial situation with the very viability of the company under threat”
Bus Éireann: Labour Court recommendations issued in February would deliver payroll savings of €5 million, according to the company
Bus Éireann is determined to press ahead with cost-cutting measures despite the threat of industrial action that could affect passengers from this Sunday.
The company said it would likely breach company law if it did not meet the savings outlined by Labour Court recommendations.
Last night it said savings from its payroll were “vital” to the survival of the company and would be provided through a range of measures including reductions in premium and overtime rates and an increase in clerical hours.
“According to the Labour Court and the trade unions’ own independent financial assessors, Bus Éireann is in a precarious financial situation with the very viability of the company under threat,” it said in a statement.
“The Labour Court has stated that significant reductions in the company’s cost base including payroll costs are essential to ensure its future and protect employment.”
It said that recommendations issued in February would deliver payroll savings of €5 million. The alternative is unsustainable losses.
The company has warned that industrial action would impose further losses that may lead to a review of core pay for staff.
Unions are continuing to ballot for industrial action in the event that the controversial measures are implemented.