Bus drivers’ wage cut

Given the municipal government's budget constraints, the 10% wage cut is the only way to avoid redundancies for Tallinn's bus drivers.

TALLINN — Bus drivers will be taking a 10 percent pay cut after their union signed an agreement with the Tallinn Bus Company to implement wage reductions to avoid layoffs.

The union agreed to the cut on the condition that Tallinn Bus Co. reduces its [private_supervisor]management costs by 20 percent. The agreement also makes the wage cut is temporary — from March 1. to Dec. 31 only. In addition to the wage cut, night salary and overtime bonuses will be also halted within this period.

“Considering the difficult situation, Tallinn Bus Co. prefers to maintain jobs for our employees,” Sirje Roht, a Tallinn Bus Co. press spokeswoman told Baltic Reports. “When the economic situation will improve, then the former salaries will be restored.”

Peep Peterson, president of the transport workers union said that there were holes in the budget but the loss was minimized as no jobs were cut and that the Tallinn municipal government’s pumping 25 million krooni (€1.6 million) into the public transportation budget saved the bus drivers from a 20 percent wage cut.

“If the city would not have found additional 25 million krooni then the salaries would have been cut by 20 percent,” Peterson told Baltic Reports.

The average salary of the bus drivers is so far 13,700 krooni (€875) before taxes. The Tallinn Bus Co. posted a 96 million krooni (€6.1 million) deficit in 2008; however, 2009 ended in surplus with 1.8 million krooni (€0.1 million). The bus company already cut the salaries of specialists and executive workers by 10 percent on Feb. 1. [/private_supervisor] [private_subscription 1 month]management costs by 20 percent. The agreement also makes the wage cut is temporary — from March 1. to Dec. 31 only. In addition to the wage cut, night salary and overtime bonuses will be also halted within this period.

“If the city would not have found additional 25 million krooni then the salaries would have been cut by 20 percent,” Peterson told Baltic Reports.

The average salary of the bus drivers is so far 13,700 krooni (€875) before taxes. The Tallinn Bus Co. posted a 96 million krooni (€6.1 million) deficit in 2008; however, 2009 ended in surplus with 1.8 million krooni (€0.1 million). The bus company already cut the salaries of specialists and executive workers by 10 percent on Feb. 1.[/private_subscription 1 month] [private_subscription 4 months]management costs by 20 percent. The agreement also makes the wage cut is temporary — from March 1. to Dec. 31 only. In addition to the wage cut, night salary and overtime bonuses will be also halted within this period.

“If the city would not have found additional 25 million krooni then the salaries would have been cut by 20 percent,” Peterson told Baltic Reports.

The average salary of the bus drivers is so far 13,700 krooni (€875) before taxes. The Tallinn Bus Co. posted a 96 million krooni (€6.1 million) deficit in 2008; however, 2009 ended in surplus with 1.8 million krooni (€0.1 million). The bus company already cut the salaries of specialists and executive workers by 10 percent on Feb. 1.[/private_subscription 4 months] [private_subscription 1 year]management costs by 20 percent. The agreement also makes the wage cut is temporary — from March 1. to Dec. 31 only. In addition to the wage cut, night salary and overtime bonuses will be also halted within this period.

“If the city would not have found additional 25 million krooni then the salaries would have been cut by 20 percent,” Peterson told Baltic Reports.

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