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  • 450 jobs cut

    JUTC, unions agree to redundancies instead of lay-offsINGRID BROWN, Observer senior reporter browni@jamaicaobserver.com
    Wednesday, June 18, 2008


    The bitter dispute over job cuts at the cash-strapped Jamaica Urban Transit Company (JUTC) came to an amicable end yesterday when company officials and unions agreed that 450 workers will be sent home on June 30 with redundancy payments instead of lay-off letters as was initially planned.
    Among the workers being axed are 370 conductresses represented by the University & Allied Workers Union (UAWU) and 80 workers represented by the Union of Clerical, Administrative and Supervisory Employees (UCASE).
    Included in the 450 workers are the 236 drivers and conductresses who were given letters two weeks ago informing them of the company's decision to lay them off for 119 days.
    However, that decision triggered a two-day strike by the workers that inconvenienced commuters. The workers returned to work on June 8 after an agreement to extend the effective date of the lay-off from June 6 to June 11.
    Yesterday, Transport Minister Mike Henry brokered the agreement for the workers to be paid a redundancy package.
    Under the agreement, the 236 workers who were laid off on June 6, as well as those whose names now appear on a new list will be paid up to June 30, at which time their positions will be made redundant.
    No set date has been given for the redundancy payments to be made. However, last night, Reginald Allen, communications manager in the Ministry of Transport, said the payments should be made within 30 days of the effective June 30 date.
    Allen also said that some employees may apply, by June 27, for voluntary redundancy subject to management approval.
    Last night, a JUTC official, who declined to be named, told the Observer that the plan was to cut the staff complement by 1,100.
    The company, the Observer was told, wants to have 4.5 employees per bus instead of the 7.02 it now has. Following this redundancy, the ratio is expected to be 5.01: which is still not within the target.
    The redundancy is part of the bus company's efforts to move to a cashless system which would eventually see all buses converted into single operator units.
    The JUTC has been reportedly 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.
    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 theft on buses, both from hold-ups and employees, our source said.
    Yesterday, Clifton Grant of the UAWU expressed satisfaction that the matter was concluded in the employees' favour.
    "This is what we have been clamouring for," he said. "We are satisfied we achieved our objectives."
    "Jamaica's future reflects its past, having attained only one per cent annual growth over 30 years whilst neighbours have grown at five per cent." (Article)
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