IT IS intended that £30.18 million in savings will be made at Iarnrod Eireann over the next two years, with a loss of 786 jobs at the company.
However, it is expected that "between 200 and 300" staff affected will be redeployed, with the remainder being made up of people who accept voluntary severance pay. The company employs 5,313.
Presenting the outline savings plan yesterday, Mr David Waters, chief executive of Iarnrod Eireann, said the company had £16 million in losses last year.
The company's total revenue in 1995, including State subvention, was £219 million, while expenditure was £235 million. Its borrowings the end of 1995 stood at £176.5 million, which costs £16 million in service payments annually.
The company's investment programme from 1996 to 2000 will cost £169 million, part of which will come from EU funds, but £90 million must come from the company itself.
Mr Waters said that despite staff reductions of 24 per cent over recent years, average staff costs had gone up by 50 per cent. He called for an end to demarcation and restrictive work practices.
In common with all European rail operators, the company has consistently lost share in the transport market, due primarily to competition from improved roads.
Deregulation was already a reality for the company, he said, identifying Northern Ireland Railways as a competitor in this context. He felt it was "essential" that the greater part of the savings would be made by next year.
The "surplus" jobs identified at the company include 198 in the mechanical engineering sector (of which 60 have to be considered further), saving £4 million; 182 in the freight service, saving £4.2 million; 148 on inter city/suburban rail services, saving £2.9 million; 144 among the clerical/administration/ managerial grades, saving £3.2 million; and 114 relating to infrastructure, saving £2.3 million. These total labour related savings come to £16.6 million.
Reductions in overtime and overtime rates are expected to save another £6 million. A further £6 million is expected to be saved in procurement costs, and £1.6 million in miscellaneous reductions (catering, advertising, expenses).
In his "cost base review" presented at yesterday's press conference, Mr Waters speaks of the need for a new corporate culture at the company to enable more effective business management.
"Basic change based on operational and commercial needs takes far too long to implement," he says.
He also points out that despite reductions in staff at the company there has been "an increase in gross payroll costs". He speaks of the management's responsibility to manage, and the staff and trade union responsibilities to co operate.
