Fewer bosses, more expensive tickets, voluntary departures. The management of STB, with debts of 1.6 billion lei, announces financial recovery measures / Ciprian Ciucu's reaction
The management of the company that provides public transport in the Capital announced a plan that includes 12 measures for financial stability and service maintenance that would lead to estimated monthly savings of 15-16 million lei. Currently, STB's total debts amount to 1.6 billion lei, according to the company.
The announced plan comes three weeks after PSD, PUSL and AUR councilors in the General Council rejected Ciprian Ciucu's proposals to have increased the price of travel with STB and to have done an external audit of the company.
The project of measures for the financial recovery of the public transport company was approved by the Board of Directors, according to an announcement made by STB on Friday.
How STB wants to make savings. “Efficiency in 12 Steps”
The first measure approved by the CA is the reduction of management positions by at least 30% and of directors by 50%, which will translate into savings of approximately 400,000 lei per month, according to STB management.
Also, the working week will be temporarily reduced to four days for certain categories of personnel, without affecting the transport activity. It is about the management staff and TESA. Bus drivers, trolleybus drivers, porters, depot and depot employees (maintenance staff, foremen) are exempt from this measure. The financial impact is over 7.3 million lei per month.
STB will not make new hires and the suspension of promotions will be maintained, except for essential personnel for operation.
Overtime and consecutive hours will be reduced by 7%, a measure that will have an estimated financial impact of 385,000 lei per month.
“Voluntary departure programs”
STB will also organize programs of voluntary departures and organizing, which will produce an economy between 7 and 8 million lei per month, according to the management of the public transport company.
The CA of STB also decided to optimize the access and withdrawal routes, but also to update the tariffs “so as to reflect the economic realities and the real costs of the public transport service”.
The STB will also analyze to whom it will grant free transport and increase checks on travelers traveling without a ticket.
Also, the company announced that additional public transport for public events will be provided exclusively on the basis of contracts and will be provided against cost, capitalizing on the tourist line through advertising.
STB also decided to eliminate inopportune expenses and stagger the debts it has to ANAF.
General Director of STB: “The company is facing a liquidity deficit, with very high fiscal obligations”
“The proposed measures aim to reduce expenses, increase income and strengthen financial sustainability, without interrupting the public transport service. STB is facing a liquidity deficit, with very large fiscal obligations of 1.6 billion lei, which put pressure on the local budget. Their implementation will be carried out with the consultation of social partners and compliance with the legal framework. The company's situation is not an easy one. In the last months, we have worked intensively, analyzed thousands of options and held numerous discussions to identify complementary solutions that will put society back on its feet and protect jobs in the long term”, said Andrei Dinculescu-Bighea, general director of the Bucharest Transport Company, quoted in the press release.
The 12 proposed measures were approved by the company's Board of Directors and will follow the legal stages of implementation during this year.
What Ciprian Ciucu says
The General Mayor of Bucharest, Ciprian Ciuc, declared on Friday, in a message on Facebook, that he will “thoroughly” analyze the set of measures proposed by the management of STB. He had previously criticized the transport company's organization chart, where he said there were “about 250 economists and about 200 chief executives”.
“At first reading, these seem to be just the first steps taken in the right direction. Whether they are sufficient or not, I will find out after analyzing the cumulative financial impact,” said Ciucu.
He welcomed the move to reduce management positions and the number of directors stating that “there is room for more”.
The liberal mayor specified that the Intercommunity Development Association for Public Transport Bucharest – Ilfov (TPBI), which regulates, authorizes and monitors public transport services in the Capital and neighboring areas, must come up with measures to “optimize costs”.
“For example, the transport that also serves localities in Ilfov County costs Bucharest City Hall approximately 230 million lei per year! This entity was initially established with 60 employees and has reached approximately 200. Including here, reorganization and restructuring are needed,” said the mayor.
Ciucu stated that he will take into account the measures proposed by the STB management and will come up with other additional ideas if they are not sufficient.
The general mayor also asked the STB management to make public the document that was voted on Thursday in the Board of Directors and to start discussions with the unions
“Transparency is essential for the success of the whole endeavor. It is good that drivers, porters and workers will not be affected, and layoffs will only be made at the level of support employees, TESA, in the offices”, concluded Ciucu.
Photo source: Dreamstime.com
