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JUTC chops 250
Losing $30 million monthly from fare collectionINGRID BROWN, Observer senior reporter browni@jamaicaobserver.com
Friday, June 06, 2008
THE state-run Jamaica Urban Transit Company (JUTC) yesterday sent home 250 of the 400 workers it intends to lay off as the company moves to a cashless system.
The bus company, a government source said, has been losing almost $30 million monthly from fares collected and a push for a cashless system would eliminate such heavy losses and better protect the company's revenue.
According to the source, the move towards a cashless system would see about half of the JUTC's fleet of 340 buses being converted to single-operator units by December, eliminating the need for conductresses or conductors.
Starting July 1, all premium buses operated by the JUTC will become cashless, with an additional route for the regular services becoming cashless every month thereafter, according to the Observer source.
This move comes amid the challenges being faced with alleged theft on buses, both from hold-ups and employees, our source said.
In the meantime, commuters who depend on the state-run bus service may have to make alternative travel plans this morning in the face of a possible strike to protest against yesterday's job cuts.
"If the [JUTC] doesn't seek to have dialogue with the union or withdraw the redundancy letters that were issued today [yesterday] then normalcy cannot be guaranteed by tomorrow morning.," University and Allied Workers Union delegate Fitzgerald Lewis told the Observer last night.
The JUTC is currently seeking to hire 400 drivers and, according to our source, some of the conductors and conductresses will have the option to apply to be trained for the positions.
"The company is now short of drivers, and there are about 12 buses now parked at the depots without drivers, so we will need to fill those vacancies," the source said.
Bus washers and dispatchers were also among those who were sent home yesterday, as in some cases four persons were said to be doing the job that one person could do.
"There was a lot of duplication. For example, at a depot there would be a bus dispatcher, a crew dispatcher, a yard dispatcher and a chief dispatcher; that is four people, and so now, what the company will do is choose which one can do the job," the source said.
In the meantime, he said point dispatchers who were located at various points across the Kingston Metropolitan Transport Region to report on the location of the buses will no longer be required as the buses will now be fitted with tracking devices.
"About 70 persons will go from there because of technology," the source said.
Since the new chairman of JUTC, Douglas Chambers, took over management of the state-owned company last year he has managed to cut the workforce by 1,000 and still operate an efficient system, another source told the Observer.
He explained that when the new management took over operations in September there were 2,700 workers on staff, which was cut to 2,100 by the end of February and a further 400 now.
He said the management's aim was to reach the international standard, which is a ratio of 4.5 persons to a bus. He said it was at 9.1 when the new management took over and it was further reduced to seven in March and a further 5.3 after this round of lay-offs.
Chambers and his board members were mandated last year by Transport Minister Mike Henry to turn around the loss-making bus company, which was being supported by taxpayers.
- Additional reporting by Paul Henry
Losing $30 million monthly from fare collectionINGRID BROWN, Observer senior reporter browni@jamaicaobserver.com
Friday, June 06, 2008
THE state-run Jamaica Urban Transit Company (JUTC) yesterday sent home 250 of the 400 workers it intends to lay off as the company moves to a cashless system.
The bus company, a government source said, has been losing almost $30 million monthly from fares collected and a push for a cashless system would eliminate such heavy losses and better protect the company's revenue.
According to the source, the move towards a cashless system would see about half of the JUTC's fleet of 340 buses being converted to single-operator units by December, eliminating the need for conductresses or conductors.
Starting July 1, all premium buses operated by the JUTC will become cashless, with an additional route for the regular services becoming cashless every month thereafter, according to the Observer source.
This move comes amid the challenges being faced with alleged theft on buses, both from hold-ups and employees, our source said.
In the meantime, commuters who depend on the state-run bus service may have to make alternative travel plans this morning in the face of a possible strike to protest against yesterday's job cuts.
"If the [JUTC] doesn't seek to have dialogue with the union or withdraw the redundancy letters that were issued today [yesterday] then normalcy cannot be guaranteed by tomorrow morning.," University and Allied Workers Union delegate Fitzgerald Lewis told the Observer last night.
The JUTC is currently seeking to hire 400 drivers and, according to our source, some of the conductors and conductresses will have the option to apply to be trained for the positions.
"The company is now short of drivers, and there are about 12 buses now parked at the depots without drivers, so we will need to fill those vacancies," the source said.
Bus washers and dispatchers were also among those who were sent home yesterday, as in some cases four persons were said to be doing the job that one person could do.
"There was a lot of duplication. For example, at a depot there would be a bus dispatcher, a crew dispatcher, a yard dispatcher and a chief dispatcher; that is four people, and so now, what the company will do is choose which one can do the job," the source said.
In the meantime, he said point dispatchers who were located at various points across the Kingston Metropolitan Transport Region to report on the location of the buses will no longer be required as the buses will now be fitted with tracking devices.
"About 70 persons will go from there because of technology," the source said.
Since the new chairman of JUTC, Douglas Chambers, took over management of the state-owned company last year he has managed to cut the workforce by 1,000 and still operate an efficient system, another source told the Observer.
He explained that when the new management took over operations in September there were 2,700 workers on staff, which was cut to 2,100 by the end of February and a further 400 now.
He said the management's aim was to reach the international standard, which is a ratio of 4.5 persons to a bus. He said it was at 9.1 when the new management took over and it was further reduced to seven in March and a further 5.3 after this round of lay-offs.
Chambers and his board members were mandated last year by Transport Minister Mike Henry to turn around the loss-making bus company, which was being supported by taxpayers.
- Additional reporting by Paul Henry
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