Bus Éireann is to bring in external management consultants to review highly controversial plans for re-structuring its loss -making Expressway service.
Last week, the company signalled it wanted to separate Expressway from the rest of the company, slim down the staff numbers and introduce pay cuts for those remaining.
The emergence of the proposals – including revelations that compulsory redundancies were not being ruled out in a bid to reduce staffing levels in Expressway by up to 150 – led to outrage among trade unions and disagreements over who had authorised the plan.
Unions are balloting staff for strike action over the plans.
Last Friday, The Irish Times reported that Bus Éireann chairman Aidan Murphy and chief executive Martin Nolan had briefed Minister for Transport Shane Ross on the plans at a meeting on September 12th.
Mr Ross later said he had only received an outline and that he had not conveyed agreement of the plan.
That Friday evening, Bus Éireann issued a statement that maintained its board had approved the cost-saving proposals and that the Department of Transport had been kept informed.
It is understood a number of Mr Ross’ colleagues have raised concerns over the cost-cutting measures.
Minister of State John Halligan and Minister of State Finian McGrath are said to be opposed to the enforcing of compulsory redundancies.
Mr Ross is said to have told his Independent Alliance colleagues he cannot directly intervene in what is a decision for the company. However, he said he is extremely reluctant to see such drastic proposals proceed.
The Irish Times understands that, at a meeting on Monday, a number of Bus Éireann directors argued that the full board had not authorised the plans, but rather the issue had been dealt with by a sub-group, the commercial and innovation sub-committee of the board.
In a statement issued on Tuesday, Mr Murphy said management consultants would now review the cost-saving plans and when this process was completed, they would be considered by the full Bus Éireann board.
“The directors of Bus Éireann have a fiduciary duty to ensure the financial sustainability of the company,” the statement said.
“In doing so, the board recognised the critical financial situation that exists and in February 2016, mandated the Commercial and Innovation sub-committee of the board , to develop solutions and liaise with relevant stakeholders.”
Mr Murphy said the board and management at Bus Éireann could not “allow losses to continue at current levels without a plan which will achieve financial stability and safeguard the interests of employees, stakeholders and the general public”.
“Given the gravity of the financial situation facing Bus Éireann, the board have also commissioned an independent review of our plans.
“Grant Thornton have been appointed to complete this review, and are expected to present their findings within four weeks. “When all options are reviewed they will be put forward to the Bus Éireann board for consideration, so a decision can be made how best to proceed.”
