Redundancy starts at JUTC

[Lazie]

Although the new administration has promised to create jobs, the management at the state-owned Jamaica Urban Transit Company Limited (JUTC) has begun swinging the redundancy axe in a cost-cutting exercise to reduce expenses and boost income.

On Friday, 16 of a group of 50 workers who have been on sick leave for a prolonged period, received their last pay packet. The remaining 24 will be sent home this week, as the company moves to shrink its 2,600 workforce and cut operating losses, which was running at an average of $140 million monthly since April this year.

Last month the company which provides public transportation in the Kingston Metropolitan Transport Region (KMTR) lost $190 million after running losses of over $100 million between April and September. New management under chartered accountant Douglas Chambers, has been trying to cauterise the bleeding, but expenses continue to outstrip income.

Up to Friday, monthly and fortnightly paid workers did not receive their salaries, as the company struggled to meet the monthly salary bill of between $130 million and $140 million. When other expenses are added, the company’s monthly cost exceeds $250 million, which compared to income of just over $180 million.

The company, according to a spokesman, must now take the tough decision to either sink or swim. Half of the company’s fleet of 500 buses are down for over a year, and the new management has been busy repairing and refurbishing in order to meet customer demand now being met mostly by robot taxis. The depletion of the JUTC fleet has severely cut into its income base, hence reducing its ability to meet its obligations.

Since taking over, Chambers and his management team have been laying the platform to turn around the company, which includes reducing the overtime billing, which was running at $40 million monthly.

Danny Roberts, president of the Union of Clerical, Administrative and Supervisory Employees (UCASE), representing about 300 inspectors at the bus company, said he had not had any discussion with the management about redundancy. Roberts is of the view that the current number of workers to 230 buses is top heavy, but said based on the company’s objective to get its operating fleet up to 450—500 buses, this would require the existing number of workers.

Roberts agreed that the company needed to be restructured under efficient management, factoring in the economic cost to operate within a system minus robot taxis. He said he and his union were committed towards achieving those goals.

http://www.sunheraldjamaica.com/coverstory2.htm

[Lazie]

hehehe .... the way this article started off showed exactly what they wanted the reader to pick up.

Yet some round here have issue only with the Observer?

[Assasin]

Mosiah your comment please

[Mosiah]

Wow! Why am I being called to comment on this?

Anyway, I repeat - the govt. (whichever govt.) must decide what level subsidy will go the the JUTC over the short term. In the meantime, the JUTC mgmt. must begin to operate at first world levels. They need to make sure that buses don't sit crippled at the depots. Crippled buses don't make money. So start to contract a company that will seriously repair buses in need.

If layoffs have to take place because the staff is too much, then so be it. Govt. subsidy should not be keeping people on payroll just because.

The SmartCard needs to offer more than a discount. NYC metrocards allow everything from day passes to week passes to month passes to one time use to transfers within a certain time to...you name it, the card can handle it. Nuh "smart" wi call fi wi card? Get creative with the card and drive robot taxis off the scene because they cannot compete with a card offering transfers, packages and discounts.

An effective bus system also requires drastic changes in our traffic patterns. The traffic gridlock that takes place every single day is not going to work!

And I could say much much more. Is that what you wanted to hear, or do you think I was going to cuss the govt.? Yes, dem break dem promise, but this is only the beginning. Reality reach dem!

[Assasin]

It just remind me of the JOS scenerio all over again.

I call you out because we have have extended argument on this. The fact is while the previous government should have know what was going on and take steps to fix it, based on this they did a little. How can 50% of your buses not running and I won't even touch the paying of activists because we know that is criminal, if it happen.

While I agree with some subsidy it is in the interest of the people of Jamaica that JUTC provides good and decent management. So the robots and taxi appearing again as the clients are demanding them? If this is the case only the JUTC will suffer more. The people have to make up their mind if they want a good bus system or robots, we can't have the luxury of both.