DUBLIN BUS plans to reduce its fleet by more than 100 buses and cut at least 250 jobs as part of a radical restructuring plan aimed at countering a significant reduction in passenger numbers.
Executives at the company are set to outline their radical plan to trade union representatives at a meeting on Friday.
It is understood that Bus Éireann is also planning to trim its schedule and reduce its headcount. Executives at the company are expected to inform trade unions of its plans at a meeting scheduled for next Tuesday.
The CIÉ group of companies – which includes Dublin Bus, Bus Éireann and Iarnród Éireann – is projected to have a deficit of €80 million this year.
Dublin Bus employs about 3,500 staff and operates a fleet of 950 buses on 140 routes in the capital. It carries about 500,000 passengers a day.
The downturn in the economy last year saw passenger journeys decline by 4 to 5 per cent. A further reduction is expected this year in line with the deterioration in the economy.
It is understood that a large number of trainee drivers will not be offered permanent positions at the State transport company. More than 100 drivers are currently in training.
In addition, voluntary redundancy terms will be offered to a large number of existing full-time workers. Packages worth about €80,000 to workers could be put on the table by company management.
Dublin Bus is expected to leave its peak-time schedule largely intact, but will significantly reduce its off-peak frequency. Some routes might also be cut.
Dublin Bus has already increased its fares by 10 per cent this month, but it is understood it sought approval for a 20 per cent increase.
Siptu organiser Willie Noone yesterday welcomed the meetings with management of the two companies. “At least we will know what cuts, if any, are being proposed,” said Mr Noone.
“We expect to be fully briefed on the situation and will then be able to gauge our response.”
Minister for Transport Noel Dempsey told RTÉ News yesterday that some lessening of public transport services was inevitable given the difficult year facing Dublin Bus.
The Minister recently received a report from consultants Deloitte about the efficiency of the Dublin Bus network. The Government has refused to sanction new buses for the company’s fleet until a review of the efficiency of its route network was completed.
In 2008, CIÉ reported a €39.5 million operating deficit due a drop in demand for its services and increased fuel costs. CIÉ is expected to face an operating loss of about €131 million this year.
The transport group is set to receive a subvention of €313 million from the exchequer this year for services on Dublin Bus, Bus Éireann and Iarnród Éireann.
