By Vernon Daley, Staff ReporterA FARE hike of 90 per cent has been recommended by a group of Swedish consultants as one of the measures to turn around the struggling Jamaica Urban Transit Company (JUTC).
If accepted, fares could be increased to nearly $40 per stage, up from the current $20.
"Increases of fares are estimated to approximately 90 per cent in order to reach break even," the consultants said in a report, a copy of which was obtained by The Gleaner yesterday.
The consultants also recommended that priority be given to the cashless fare collection system to stem leakage and encourage frequent travellers. The system, which was on the cards for years, was introduced recently.
At the same time, the consultants have submitted a raft of cost-cutting measures, designed to save the state-owned bus company $700 million over the next 15 months.
The report showed a projected $250 million reduction in costs by the end of March and another $450 million saving from April to the end of the following financial year.
Included in the recommendations to contain cost is an immediate freeze on new employment; reduction in the number of drivers and conductors; slashing depot attendants and dispatchers and cutting security costs.
The four consultants, who were brought in last summer to reorganise the struggling bus company, also recommended increasing the number of part-time drivers and conductors.
Attempts to reach JUTC president, Sterling Soares, were unsuccessful up to press time last night.
Proposals to cut staff have, however, not gone down well with union leaders. The University and Allied Workers Union (UAWU), which represents 80 per cent of the JUTC workforce, said it would not support any move to cut staff without consultation with the workers.
"The issue of consultation with the workers is not a formality. It is important," said Professor Trevor Munroe, UAWU president.
Between Tuesday and Friday, a series of meetings will be undertaken at the various depots to inform workers about the financial problems of the company, as well as to get their suggestions about what can be done to improve the situation. This will be followed by a meeting between the union and management on January 20 to discuss the matter.
Coming out of the report, the company reportedly took the decision to send home 300 of its 3,300 employees as a means of breathing new life into the ailing company.
Meanwhile, Danny Roberts, vice-president of the National Workers' Union (NWU), which also represents JUTC workers, has slammed the report as failing to address the crucial issue of incompetent and inefficient management at the company.
Over the weekend, Mr. Roberts called for Auditor-General Adrian Strachan to be brought in to conduct a thorough probe of the company, which was set up nearly four years ago to replace the ramshackle bus service in the Kingston Metropolitan Transport Region.
Two of three vice-presidents of the JUTC quit at the end of last year amid a management review of operations there.
Dr. Alton Fletcher, vice-president of human resources, and John Campbell, vice-president of engineering services, left the company but the JUTC said they were not forced out.
The audit was ordered by Mr. Soares and painted the company as technically insolvent. Apart from the daily losses of $3.6 million suffered by the JUTC, it found that the negative worth of the company in February 2002 stood at $1.13 billion. This was in addition to an accumulated deficit of $2.63 billion to February 2002 - total revenue that would be collected over 19 months.
