Transdev Losing Money. Cuts to be made

[Matty]

Copied from Ray Ramsay on a Facebook post


"You may be aware that both myself and XX attended a business review meeting on the 14th November.

At that meeting we were informed that the company had some serious issues to tackle and as such some serious actions it intended to take, 2022’s figures were showing a significant loss.

It was reported that Malton depot was losing around £1 million per year and that York depot was losing around £500,000 per year – clearly the losses cannot continue.

The losses were identified as stemming from the bus recovery grant, which the company had enjoyed since Covid, being assumed to cease at the end of March 2023, coupled with a massive increase in the cost of Gas, Electricity and Diesel.

The Fuel Duty rebate which public service operators enjoy is also due to be reduced. Inflation is currently above 10% and also there will be an increase in the Living Wage of 6.6%. – the increase in fuel costing the company over £3 million in itself.
In real terms this equates to a £4.9 million loss to the business for 2022.

Therefore in an attempt to stem the loss the company has decided that there will be no new buses (except for the ones currently ordered and paid for) for 2022/2023, there will be a 12% commercial fare increase in April of 2023.

We were shown a chart which was listing services in 4 categories, 1 - Making Money, 2 - Good but could be improved, 3 - Losing money For Retender, 4 - for Exit.

City Sightseeing services were in category 1 and will be retained for 2023 with a full service planned as well as improvements to increase efficiency.

Coastliner was in category 2 where improvements will be made to reduce waste as well as increase efficiency, and the Whitby service is planned to be withdrawn unless a tender is offered. If a tender were to be offered on this service then the company would actively bid for it.

In York the local services, Castleline and the NY Sponsored services were in category 4, and are not making money so it is proposed in April 2023 to put these services back to the Council for retender. The company will retender for these services, but at a vastly improved rate to the one we currently have. There may also be a possibility at this stage that First York could reduce some of their services and there is a possibility that we could pick up some of their runs after tenders are issued.

Service 22/23 was earmarked in category 4 for withdrawal in April 2023 (the company may retender but it is not known at this time if that will be the case).

I asked the question - was York and Coastliner going to be merged together due to the new depot being built at Rawcliffe? – the answer was simply “nothing is off the table”- it was also said that the company will look to reduce the operational scope of both York and Malton depots and focus on strong commercial bus operation.

In light of the cost-cutting taking place the “Amazing Awards” have been cancelled for this year as it’s hard to be seen to be celebrating success whilst making cuts – and the magazine that gets delivered to our homes on a regular basis is to be withdrawn. The bonus for joining the company will also be gradually withdrawn.

Contract Engineers would also be phased out – with the company looking to recruit and retain its own employed staff.

One standard uniform across the group will be introduced next year to further cut costs.

With all these cuts - the company would still see a loss for 2022 of £250,000, not good but far better than several million.

On a positive note – I can confirm that the move to Rawcliffe is still on and we at York are still on track to be moving there in early January, a temporary workshop will be erected shortly and portable buildings will be delivered for us to work out of, a small extension to the end of January has been agreed for Hospital Fields Road and this is expected to allow the movement of equipment to the new site.

That’s all the news for now – anything new or any updates I’ll let you know as soon as I find out.


Trade Union Rep.

PRESUME ALL OPCOS OF TRANSDEV WILL BE FACING SIMILAR CUTS"

[daveshipley]

I was taking with the inspector at Harrogate this week. Apparently they wouldn’t pay the maintenance staff properly for overtime. Loads left especially at Malton. They had to hire contract maintainers in from Loughborough, they stayed in a hotel Mon-Fri and went home at weekends. They made them sign a contract which stated they were not to speak about the situation to anyone outside the company !
That best designs company who design all their liveries coast the cost the company £236k over the last 2 years. The top engineer is a mate of AH but basically has no knowledge about bus engineering !

Everyone is frightened to speak out or challenge within the company.

What a shambles. One man one ego ! Hopefully it’s starting to unravel

[kendall17]

Nov 30, 2022 20:46:16 GMT 1 daveshipley said:

Everyone is frightened to speak out or challenge within the company.

I think this is the biggest problem any company can face. Empowering any colleague to speak up and challenge decision makers in the right way is what helps a company grow and deliver better results, as colleagues closer to the coal face feel more valued and will ultimately deliver a better service.

Turn that culture around and staff retention becomes less of an issue too.

[kendall17]

Nov 30, 2022 23:08:41 GMT 1 kendall17 said:

Nov 30, 2022 20:46:16 GMT 1 daveshipley said:

Everyone is frightened to speak out or challenge within the company.

I think this is the biggest problem any company can face. Empowering any colleague to speak up and challenge decision makers in the right way is what helps a company grow and deliver better results, as colleagues closer to the coal face feel more valued and will ultimately deliver a better service.

Turn that culture around and staff retention becomes less of an issue too.

The irony t.co/JyI7dzwK5o

[northerner]

The Head of People position could have been created to put more emphasis on staff wellbeing and to drive a change in culture. Things don't seem particularly great at the moment, a lot of the drivers I've encountered recently appear demotivated, which could also explain the seemingly high turnover. Creating a role during a period of cost cutting does give the impression the issues are being taken seriously, although it's unlikely to be a quick fix.

[daveshipley]

There is a quick fix. It involves one person leaving !

But in all seriousness people are now starting to see him for what he is.

He should not worry. Political future ahead maybe as a spin doctor ?

[rwilkes]

All companies are under great pressure due to reduced patronage, fuel price inflation, severe congestion and the driver shortage. First has just pulled out of Southampton which is a very big move.

Given the traffic chaos in West Yorskhire it amazes me that we have any buses at all! Many busy roads are turned into single track with passing places due to street parking and all the important traffic such as goods and buses are going at walking speed
.
In any company there will be quite a few who hate the boss or senior management genarally and it is not really very intelligent to make rash comments on hearsay evidence.
It is very interesting when people report service and vehicle changes and point out problems in services in a constructve way.
If we stuck to this we would get a lot more intersting company info from really good sources like members of senior management

[SCH117X]

Is not the core problem facing operators the lack of proper renumeration for concessions users. With First pulling out of Southampton for example there is a symptomatic issue that needs addressing with I would suggest a nationally agreed renumeration rate and limitations imposed on how far concessions users can travel for free. The technology ought to there to limit free use to a specific range of their home post code with local exemptions say for hospital visits. How stupid the situation is was evident years ago when neither Transdev or Harrogate Coach Travel could make a full Harrogate-York service pay its way.

[steve440]

Should a Union rep be posting presumably confidential information such as this on Facebook?

[joseph]

Dec 1, 2022 19:45:23 GMT 1 steve440 said:

Should a Union rep be posting presumably confidential information such as this on Facebook?

Probably not but I guess he's so deflated he probably couldn't care less, I know I'd be that way as I slap my employer for 6 where I can using disguised accounts on social media. I'm guessing the 24 will defo be a candidate for axing as well as a reduction in frequency of the 1 route which sees very hit and miss loadings, e.g. a full decker followed a few minutes later by an empty single. Wouldn't surprise me if they made the 36 half hourly permanently as that's how it's been running most days for several months with no loss in custom lol.

[SCH117X]

Its rumoured the 24, which has run at a loss for some time, is to be reduced to two workings a day; no doubt those which serve the Harrogate schools.

[Username]

Woah, woah slow down nobody mentioned about Harrogate, the services that seem to be affected are Transdev York routes. I think Harrogate are doing alright at the minute.

[mattb7tl]

I'm more shocked about how little they spent on liveries? (I know it is just the design) 
But is it really a shock that the services are struggling in York? They were deserted before the pandemic, I've got no idea how they managed to run in the first place.

[Deleted]

Dec 2, 2022 21:51:25 GMT 1 Username said:

Woah, woah slow down nobody mentioned about Harrogate, the services that seem to be affected are Transdev York routes. I think Harrogate are doing alright at the minute.

It's been mentioned on another forum that some of the Lancashire tenders could be at risk (Ribble Valley & 153) alongside other loss making tenders (so Route 24 could be possible). I'm Guessing Transdev bid too low as they thought they could increase passenger numbers to make up for it & that gambles failed? If they are giving up the Lancashire tenders, it might explain why the Solo refurbishment at Halifax has been so slow & they might be gaining more Mellors.

Not sure if it's been mentioned before but the Shuttle Eclipses are now having their branded amended to say 'Every 15 Mins' so it looks like that's a permanent reduction as well.

[SCH117X]

Dec 2, 2022 21:51:25 GMT 1 Username said:

Woah, woah slow down nobody mentioned about Harrogate, the services that seem to be affected are Transdev York routes. I think Harrogate are doing alright at the minute.

80 bus services in North Yorkshire are under threat according to comments that have made in parliament as part of prime ministers questions. I would think the 21 is as likely a chop as the 22 and 23 as its was part of the same package saving those routes from NYCC minibus operation.

[SCH117X]

Dec 2, 2022 22:46:34 GMT 1 @cp2012 said:

I'm Guessing Transdev bid too low as they thought they could increase passenger numbers to make up for it & that gambles failed?

I would think thats the case; they hoped that by marketing the services beyond the minimal that had happened before would generate a growth. Maybe it did initially then along came covid and lockdown and since then those who might have used the service depsite having other transport options opted not to use the bus

[westyorkshirebus]

Dec 2, 2022 22:46:34 GMT 1 @cp2012 said:

Dec 2, 2022 21:51:25 GMT 1 Username said:

Woah, woah slow down nobody mentioned about Harrogate, the services that seem to be affected are Transdev York routes. I think Harrogate are doing alright at the minute.

It's been mentioned on another forum that some of the Lancashire tenders could be at risk (Ribble Valley & 153) alongside other loss making tenders (so Route 24 could be possible). I'm Guessing Transdev bid too low as they thought they could increase passenger numbers to make up for it & that gambles failed? If they are giving up the Lancashire tenders, it might explain why the Solo refurbishment at Halifax has been so slow & they might be gaining more Mellors.

Not necessarily. If they are retendered, I expect Transdev would bid again with a higher bid and hope to win them back

[joseph]

I'd expect cuts to the A1 as it surely must be losing a lot of money. It's been very hit and miss when I've seen loadings, and that's at all sorts of different times as well. Take yesterday for example, saw one around 11.15am Leeds bound near Horsforth with just 3 on board, they made a mistake increasing the frequency. Yes some are well loaded, but they're probably closely timed to plane arrivals or departures, maybe Transdev should be looking at a timetable specifically timed around departures/arrivals as much as it can be and make it non stop except for two stops around Kirkstall and Horsforth for employees of the airport (these should be pre-booked as well) who nearly always seem to board there.

[Username]

Instead of increasing the Airport Routes I think they should focus on bringing Trax back to every 10 minutes again, those services are proper busy especially the 468. Also I do think the Team Pennine Solo 177 and 184 could be getting refurbished however 187 has been scrapped as I saw it in pieces at Waterloo depot.

[rwilkes]

The airport service is specified by the airport so it would not help Transdev to change it.
As I said in an earlier post, all bus companies are in the same boat.
There is only one thing which will guive us better and financially viable buses would be good bus priority.
Otherwise we will just be reporting cuts. Write to your councillors and don't give up!

[WYBS]

Dec 3, 2022 8:42:19 GMT 1 joseph said:

I'd expect cuts to the A1 as it surely must be losing a lot of money. It's been very hit and miss when I've seen loadings, and that's at all sorts of different times as well. Take yesterday for example, saw one around 11.15am Leeds bound near Horsforth with just 3 on board, they made a mistake increasing the frequency. Yes some are well loaded, but they're probably closely timed to plane arrivals or departures, maybe Transdev should be looking at a timetable specifically timed around departures/arrivals as much as it can be and make it non stop except for two stops around Kirkstall and Horsforth for employees of the airport (these should be pre-booked as well) who nearly always seem to board there.

Or even better, only run it to Murgatroyds from the Airport, then people can change onto the 34/ 97. 😉

[Username]

Dec 3, 2022 12:04:19 GMT 1 WYBS said:

Dec 3, 2022 8:42:19 GMT 1 joseph said:

I'd expect cuts to the A1 as it surely must be losing a lot of money. It's been very hit and miss when I've seen loadings, and that's at all sorts of different times as well. Take yesterday for example, saw one around 11.15am Leeds bound near Horsforth with just 3 on board, they made a mistake increasing the frequency. Yes some are well loaded, but they're probably closely timed to plane arrivals or departures, maybe Transdev should be looking at a timetable specifically timed around departures/arrivals as much as it can be and make it non stop except for two stops around Kirkstall and Horsforth for employees of the airport (these should be pre-booked as well) who nearly always seem to board there.

Or even better, only run it to Murgatroyds from the Airport, then people can change onto the 34/ 97. 😉

27 it hasn't been 97 for years now.

[Deleted]

Dec 3, 2022 0:04:26 GMT 1 westyorkshirebus said:

Dec 2, 2022 22:46:34 GMT 1 @cp2012 said:

It's been mentioned on another forum that some of the Lancashire tenders could be at risk (Ribble Valley & 153) alongside other loss making tenders (so Route 24 could be possible). I'm Guessing Transdev bid too low as they thought they could increase passenger numbers to make up for it & that gambles failed? If they are giving up the Lancashire tenders, it might explain why the Solo refurbishment at Halifax has been so slow & they might be gaining more Mellors.

Not necessarily. If they are retendered, I expect Transdev would bid again with a higher bid and hope to win them back

Realistically would it be likely Transdev would win them if they bid at the price they needed to make a small profit with? As isn't that the reason they've lost the routes over the last 20 or so years (some pre-Transdev takeover) to the local independents, especially when you factor in the amount of dead mileage to run the 153.

Dec 3, 2022 9:39:37 GMT 1 Username said:

Instead of increasing the Airport Routes I think they should focus on bringing Trax back to every 10 minutes again, those services are proper busy especially the 468. Also I do think the Team Pennine Solo 177 and 184 could be getting refurbished however 187 has been scrapped as I saw it in pieces at Waterloo depot.

Unless your suggesting having drivers travel from Bradford to Bury,i'm not sure how reducing the Airport services would help the Trax? Also didn't some of the Trax Streetlites gain the standard Rosso livery earlier this year? possibly a sign the 'Temporary' reduced frequency is here to stay as like Keighley's 662.

[Father Dougal McGuire]

Dec 3, 2022 14:23:26 GMT 1 @cp2012 said:

Routes such as the 153 or Coastliner 840/843 where there is a Transdev base at either end of the route (or near enough York/Malton) they could split the work between depots. Excessive dead runs are a real waste of resources and should be avoided where possible.

Back in the day when the 184 was split between Oldham and Huddersfield, Huddersfield ran the first two services from Huddersfield and the last two services to terminate at Huddersfield. When this stopped and all went to Oldham, there were then early scheduled trips to Huddersfield which were pretty much positioning trips so better to run them in service on fast times and anybody you pick up is a bonus. 

In Calderdale, the 589/590/592 until recently had all Todmorden starting/finishing trips start in Todmorden and all Halifax starting/finishing trips were run from Halifax. Although now Halifax only operate two buses on these services out of 14 where as before they operated 6 out of 17.  

[Deleted]

Dec 3, 2022 15:17:08 GMT 1 Father Dougal McGuire said:

Dec 3, 2022 14:23:26 GMT 1 @cp2012 said:

Routes such as the 153 or Coastliner 840/843 where there is a Transdev base at either end of the route (or near enough York/Malton) they could split the work between depots. Excessive dead runs are a real waste of resources and should be avoided where possible.

Back in the day when the 184 was split between Oldham and Huddersfield, Huddersfield ran the first two services from Huddersfield and the last two services to terminate at Huddersfield. When this stopped and all went to Oldham, there were then early scheduled trips to Huddersfield which were pretty much positioning trips so better to run them in service on fast times and anybody you pick up is a bonus. 

In Calderdale, the 589/590/592 until recently had all Todmorden starting/finishing trips start in Todmorden and all Halifax starting/finishing trips were run from Halifax. Although now Halifax only operate two buses on these services out of 14 where as before they operated 6 out of 17.  

I Think you might be thinking of the 152 (Preston > Burnley) rather than 153,the 153 is the Preston to Leyland route Transdev won on tender, with them running it from Blackburn depot about 15-16 Miles away from both terminus.