The Bucharest Transport Company (STB) has announced a 12-step financial recovery plan approved by the Board of Directors, as the company’s debts have reached 1.6 billion lei.
The measures include, among others, reducing the number of directors, freezing hiring, voluntary departures, updating tariffs, and reanalyzing free services.
Mayor Ciprian Ciucu says he will thoroughly analyze the plan and warns that if the measures are not sufficient, he will come up with additional proposals. "I believe there is room for more," the mayor asserts.
Restructuring at the Top and Reduction of Administrative Expenses
The first measures target the management structure. STB proposes a minimum 30% reduction in leadership positions and halving the number of directors, with an estimated monthly savings of approximately 400,000 lei.
At the same time, the workweek will be temporarily reduced to four days for management and TESA personnel, without affecting transportation.
Bus and trolleybus drivers, tram drivers, employees in depots and bus stations, as well as maintenance staff are exempt. The estimated financial impact exceeds 7.3 million lei per month.
Hiring Frozen, Voluntary Departures, and Reduced Overtime Hours
The plan includes stopping new hires and maintaining the suspension of promotions, except for essential operational personnel.
Overtime and consecutive hours will be reduced by 7%, leading to savings of approximately 385,000 lei per month.
The company also proposes voluntary departure programs and internal reorganization, with an estimated financial impact between 7 and 8 million lei monthly.
Updated Tariffs and Reanalyzed Free Services
Among the measures directly affecting passengers is updating tariffs to reflect the actual costs of public transportation services. However, the General Council rejected, at the end of January, Mayor Ciucu's proposal to increase the fare from 3 to 5 lei for STB trips.
The management also announces a reevaluation of the free services policy to maintain a balance between social protection and the company's financial sustainability.
Additionally, STB aims to increase compliance and discourage travel without a valid transport ticket.
Fee-Based Transportation for Events and Debt Restructuring
Additional public transportation for events will be provided exclusively based on contracts and will be offered for a fee. Additionally, the tourist line is expected to be monetized through advertising.
Other measures include optimizing access and withdrawal routes, eliminating deemed inappropriate expenses, and restructuring debts.
According to the company, the total debt is 1.6 billion lei.
General Manager: The Company Situation Is Not an Easy One
General Manager Andrei Dinculescu-Bighea states that the measures aim to reduce expenses, increase revenue, and enhance financial sustainability without interrupting public services.
"The company's situation is not an easy one. In recent months, we have worked intensively, analyzed thousands of scenarios, and held numerous discussions to identify complementary solutions to get the company back on track and protect jobs in the long term," he said.
The plan's implementation will involve consultation with social partners and compliance with the legal framework.
Ciucu: These Are Just Some First Steps in the Right Direction
In a message posted on Facebook, the Mayor of Bucharest, Ciprian Ciucu, states that he will analyze the set of measures proposed by STB to reduce losses during this year. He mentioned that, "at first glance," these "seem like just some first steps" taken "in the right direction."
The mayor will assess the cumulative financial impact of the measures and decide if they are sufficient.
Ciucu believes that reducing leadership positions and halving the number of directors are welcome measures but not enough. "It's good that they included 'reducing leadership positions by at least 30% and directors by 50%.' I think there is room for more," the mayor emphasizes.
He points out that the restructuring should also target the Intercommunity Development Association for Public Transport Bucharest-Ilfov (ADITPBI), the entity coordinating surface public transport in Bucharest and Ilfov.
According to the mayor, the transportation serving localities in Ilfov costs the Bucharest City Hall approximately 230 million lei annually. ADITPBI started with around 60 employees and reached about 200, which is why, Ciucu says, "there is also a need for reorganization and restructuring here."
The mayor announces that he will consider both STB's measures and those he expects from ADITPBI, and if they are not sufficient, he will come up with additional proposals.
Call for Dialogue with Unions
The mayor urges STB managers to make the document voted on by the Board of Directors public and "start discussions" with the unions.
"Transparency is essential for the success of the entire process. It's good that drivers, tram drivers, and workers will not be affected, and layoffs will only affect support staff, TESA employees in offices," Ciucu further states.
The STB Mammoth: 200 Managers, 250 Economists, and a Budget Like a Sector Town Hall
The recovery plan comes after harsh criticism in recent weeks regarding the administrative structure and level of expenses within STB, including from Mayor Ciucu.
The mayor pointed out that the company has about 200 directors and managers and around 250 economists, as the annual budget of the company approaches that of a sector town hall. Ciucu argued that a profound restructuring and an analysis of the organizational chart and management processes are necessary.
In this context, the reduction of leadership positions and the administrative apparatus reorganization - now included in STB's official plan - can also be seen as a response to public pressure for the company's efficiency.