Merseyside seeks cuts in £3m economy drive
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• Cuts of up to 350 staff and the closure of two depots are under discussion at Merseyside Transport as part of an economy package. Cost savings of .£3 million are being sought as the former PTE operator gets to grips with the growth of competition on Merseyside.
Independent bus companies now account for over 500 of the 2,000 vehicles in the area, and have won 25% of tendered work. Merseybus's share of tendered work has fallen to less than 50% and it now has less vehicles than its competitors, which include Drawlane companies North Western and Crosville.
The company hopes to save manpower and vehicles through service reorganisation, without materially affecting its service to the public. Some of the savings will be made through the closure of Walton and Carston depots in Liverpool and the elimination of an operating division. The North and South Divisions of Liverpool will be combined when two of the six garages close in September and one set of managers will be saved. The proposals are now under detailed discussion with the unions, with the company stressing its proposals are by no means finalised.
Merseybus moved from being a high-subsidy operator to commercial viability at deregulation, and it lost £40 million of subsidies from Merseyside Council. The company has managed to make a small surplus but it maintains that economies are required to keep it profitable. A 4.5% wage increase has been imposed on staff, on the grounds that no more money is available. This followed last year's increase of 3%.