Degreasing considered a thousand employees in the NTC
27 April 2011
Given its critical financial situation, the National Transport Corporation (NTC) has decided to lay off a thousand employees to streamline its spending and reduce its deficit. With degreasing projected involving a thousand employees, could reduce its wage bill weighs Rs 40 M. The deficit amounted to Rs 66 M.
The NTC has a workforce of 2,500 employees, a surplus of 1 000 employees, to operate a fleet of 525 buses. A member of the management company told Le Matinal that minimum monthly losses are around Rs 15 M. The financial position of the NTC was, moreover, complicated with the construction of its building to Ebony.
"The NTC has the largest fleet of buses in the country, that is to say 525. But the ratio in all companies is that for the commissioning of 5 buses, 7 and 7 conductors drivers are employed. However, the NTC that is not the case. A simple calculation shows that for the operational of 525 buses, we need a workforce of 735 drivers and the same number of conductors. Clearly we have 1000 employees too. The shortfall is significant if we take the monthly revenue and expenditure of the company. You should know that every month the company cash income of Rs 63 million from the sale of bus tickets. But she has to pay Rs 40 million for salaries and Rs 31 million for diesel, plus a further sum of Rs 7-8 million for spare parts. The minimum every month losses are, rotating around Rs 15 million.
Two years ago, the NTC had a workforce of 3,000 employees but this number decreased to 2500. For management, the reduction of manpower in the NTC is not a degreasing as supporting unions. "Employees who have retired were not replaced. Only a key position has been filling."
The financial situation of the NTC was complicated with the construction of its building to Ebony. The building remains vacant. The government intends to take this building for a sum of Rs 125 to Rs 150 million.
A restructuring plan is under consideration at the Ministry of Public Infrastructure for the survival of the corporation. Last year, NTC has received an allocation of Rs 112 million because it operates on lines that are not profitable. Management has made a new demand of Rs 112 M. The management is confident that the government will grant this sum to the NTC because it has already received around Rs 36 M.
Concerning the accident involving three buses of the NTC near the station at Camp Levieux, the General Director of the NTC, Robin Soonarane denied the driver who claimed that the brakes were defective. He stressed that police officers have checked the brakes and they concluded that they were not in a state of malfunction.