The price of peace on the roads, disrupted in a week-long strike in the hot July of 2008, will cost the country €53 million. James Debono asks the question: did the strike pay off for bus drivers, despite what appeared to be a knock-out blow?
James Debono
In July 2008, it looked as though Austin Gatt had effectively dug the mass grave of the ‘protected’ transport sectors: from hearses to minibuses, taxis to buses.
Moreover, it seemed that the drivers themselves had dug their own graves, too: namely, by alienating fellow Maltese citizens with a trail of mayhem left in the wake of their impulsive, wildcat strike in solidarity with 11 hearse owners.
However, the entire transport sector was left in a quandary when the same 11 hearse owners deserted the fight by accepting the government’s €230,000 compensation offer... leaving bus drivers to find a way out of a fight which was not even theirs to begin with.
Or so it seemed at the time. For riding high on the crest of public support after enjoying the limelight as ‘commander in chief’ issuing daily bulletins during the strike, Transport Minister Austin Gatt emerged as the king of the road, proposing an ambitious blueprint for public transport reform just days after the strike was called off.
But looking at events with hindsight, the strike may well not have been a complete fiasco for the bus owners. Just as the government had “bought the peace” by offering a sum of money to hearse owners, bus owners might well have sensed that what’s good for the goose might well be good for the gander.
In his press conference – shortly after securing the end of the strike and the hearse owners’ resignation from Victor Spiteri’s federation against €230,000 compensation – Gatt said part of the offer would be used for the association’s marketing – a risible prospect given that none of the hearses advertise their services because they are contracted by funeral directors.
When interviewed, John Bray – president of the hearses owners’ association – simply announced that he will probably distribute the amount among the 10 members, so they would end up getting like €23,000 each.
“That’s up to them,” Gatt says. “I gave the money to the association, what they do with it is up to them.”
The price tag may well have been inflated by the strike itself and by promises made by the previous Gonzi administration.
Former Transport Minister Jesmond Mugliett himself confirmed with MaltaToday that way back in May 2006, the government had committed itself not to issue new licences for motor hearse operators.
“The commitment not to issue further licenses for motor hearses was not a decision I took on my own,” Mugliett told MaltaToday.
In fact, the agreement drafted by the Malta Transport Authority (ADT) and the Ministry for Transport, and discussed with the Motor Hearses Association, included a written commitment on the government’s part not to issue any new licences for motor hearses even if it was never signed because the motor hearses owners did not accept all the ADT’s conditions and the authority refused to accommodate the owners’ additional demands.
In calling off the strike, the bus owners’ calculation may well have been that when the dust settled they would be eligible for a similar compensation.
And they also possessed a trump card to raise their price tag; a letter sent to bus drivers before the 2008 election, promising that both their business and jobs will be secure for a minimum of 10 years.
No wonder Prime Minister Lawrence Gonzi himself had to intervene in talks between Gatt’s ministry and the Public Transport Association.
Dr Gonzi has acknowledged that originally, the government’s proposed compensation was worked out on the average selling price of buses and licenses over the last decade.
Gonzi took the responsibility of increasing the government’s offer by taking the average over two years. This amounted to €98,000 compensation to owners of old buses and €118,000 to those who owned low-floor buses.
The offer was later raised to €103,000 for each old bus and €123,000 for the newer buses which would cost the taxpayer €53 million.
Of this sum, 90% is being paid in compensation for the relinquishing of the licence.
Drivers were also offered 10-year guaranteed job with the new service provider at a wage of at least €9,486 a year.
The bus owners have also formed a company and teamed up with Tumas Group and leading UK transport company Arriva, to bid for the public transport tender. If they win they would might well sing victory.
At the end of the day, it remains to be seen whether the consumer will share any of the spoils.
What we so far know for sure is that the new company will still be using obsolete Euro III buses which will be bought by the government from the bus drivers but which the new company will have to change after a few years to make way for less polluting Euro 5 buses, which can stay on the road for the next 15 years.
With the government planning to cut all subsidies after a few years, it remains to be seen how the new company will pay for the unprofitable routes and the promised night service.
The government hopes that it can do away with the subsidy by increasing regular patrons. In fact the new tariff system announced by Transport Minister in October favours regular bus users while penalizing occasional and less frequent users.
A two-hour ticket will cost €1.30 – more than double the cost of a single ticket at present rates. But the availability of day tickets (if bought before 8:00am) will make public transport 48 cents cheaper for anyone currently taking four bus rides a day.
Those opting for a three-month ticket costing €85 will save 47 cents daily over present prices if they use the bus four times a day between Monday and Friday.
But the system is less beneficial to less frequent albeit regular users. Those who are currently taking two bus rides a day during working days will have to pay an extra 46 cents daily when buying an early riser day ticket; an extra €9.30 if they opt for a seven-day ticket; and practically the same amount as today, if they opt for a three-month ticket. Someone who like the undersigned combines walking to work with riding one or two buses on a daily basis will end up paying much more.
Any comments?
If you wish your comments to be published in our Letters pages please click button below. Please write a contact number and a postal address where you may be contacted.
