Travel Talkers

AS CIE launches a determined bid to cut costs, three men are responsible for negotiating major changes in work practices with unions representing she group's 11,500 workers.

As chief executives of the three operating companies within the group, David Waters of Iarnrod Eireann, Donal Mangan of Dublin Bus and John Browne of Bus Eireann have been charged with changing the custom, practice and culture of the State transport company.

CIE wants to shave £44 million off its annual running costs to fund the capital cost of future investment. After capping group borrowings the board now needs to bridge the gap between projected cash flow and forthcoming Investment needs.

The three chief executives anticipate savings largely by changing labour practices and inflexibilities they maintain have been endemic at CIE for many years. Chairman Brian Joyce wants his operating companies to be "lean and mean" and ready to meet the challenge from new competitors.

However the unions argue that changes introduced two years ago and described then by management as innovative proposals are now seen as restrictive practices. Why should we walk a further mile with them when management do not seem to know where they want to go", one union source suggests. The stage seems set for a major confrontation.

As chief executive of Iarnrod Eireann, the largest company in the group, David Waters' mission is to reduce his annual operating costs by £30 million. The railway company is losing market share to private operators with modern bus and coach fleets which can offer competitive prices, says Mr Waters.

Mr Waters wants to invest £169 million to improve his fleet between now and the year 2000. Some funds will come from the EU, but Iarnrod Eireann will have to fund £90 million of the investment. Under current operating conditions, with a loss last year of £16 million and its borrowings of £177 million, it cannot fund that investment. To fund any new investment out of cash flow, Iarnrod Eireann must generate an operating surplus.

Labour inflexibility, including having guards as well as conductors on trains, is costing £12 million per annum, according to Mr Waters. Other potential savings identified include £6 million from changes in overtime and weekend working, depot costs of about £4 million, savings on purchased goods and services of about £6 million, and other overheads of £1.6 million.

Described as a someone who is not afraid to deal directly with issues, 60-year-old Mr Waters came to CIE in 1961. A native of Ballina he qualified as an engineer in UCD, and is described as affable and direct. "He is not your usual one dimensional manager". one source suggested. Mr Waters won an All Ireland minor football medal in the 1950s and he is a trustee of the Cheshire Foundation of Ireland. He is a brother of a former RTE director general George Waters.

His direct style was apparent when difficulties arose about the state of the rail line to Sligo. He went to the Sligo County Council and appeared in the council chamber to admit the problems and answer questions. This week the Mayoman is meeting TDs and elected representatives in a Dublin hotel to outline his plans for Iarnrod Eireann and deal with questions.

At Dublin Bus, Corkman Donal Mangan is looking for minimum cost savings of £8 million in order to invest £13 million to £14 million in the fleet over the next five years. But the company has accumulated losses of £20 million, expected to rise to £24.7 million at the end of 1996, and revenue so far this year is £1 million below target. If no action is taken, Mr Mangan expects cumulative losses to double to £46 million by 2000.

This year cash flow from operations is projected at just over £7 million. This will not cover capital investment of £13 million so Dublin Bus will have a net cash outflow of just over £6 million.

Donal Mangan does not appear to have good relations with the unions at CIE. On a business level they cannot understand how he can be responsible for promoting Dublin Bus while at the same time acting as project director for the Dublin Light Rail Transit project (LUAS) which they see as a direct competitor for Dublin Bus.

Union sources maintain that Mr Mangan has mounted no new initiatives at Dublin Bus since he took over as chief executive last year. The 51-year-old engineer and accountant whose hobbies are sailing and music, joined CIE in 1967 and was general manager of Bus Eireann between 1991 and 1994.

At Bus Eireann, John Browne must remove £6 million off his operating costs. Mr Browne has been chief executive of the company which runs provincial city services and inter city bus services since April 1995. He expects to lose £5 million this year after the state subsidy. Costs are rising but revenue is shrinking in a market where competition from private operators is increasing.

Competitors have better vehicles and lower cost bases. The company needs to cut costs to generate the cash to buy a new bus fleet. Described as a gentlemen by union sources, John Browne came to Bus Eireann from Dublin Bus where he was executive director of operations and engineering. Union sources said he can be "ruthless when he needs to get his way" but added that he is "a compassionate mane".

A keen golfer who plays off a handicap of 16. John Browne came through the railways and the Dublin city bus service before taking over at Bus Eireann. Sources say he is determined to implement the cost saving scheme as planned on October 14th.

The Limerick-man feels strongly that people should be paid for the time they work, not waiting time. Colleagues say the bridge player is frustrated at what he sees as the failure of the unions to engage in serious discussions. Negotiations have been going on a long time, he said this week, adding that "the unions walked out, it is up to them to come back in".