Benchmarking shows room for bus efficiencies

[Buzz Killington]

I look forward to seeing the drivers' comments on this one...

Media Release

   
   
   
• 
  
  Independent benchmarking commissioned by ACTION has shown that the cost of operating Canberra's bus system is more than $31 million a year above the efficient benchmark, with drivers being paid well above the efficient benchmark and enjoying longer non-driving periods, and with the service employing more and better-paid mechanics, cleaners and refuellers per bus.
  
  Chief Minister and Minister for Transport, Jon Stanhope said the benchmarking was undertaken by Indec Consulting and compared ACTION's 2008-09 operating costs against the weighted average efficient benchmark of private bus operators in other jurisdictions.
  
  The study found that ACTION had a strong customer service focus and provided longer hours of service out of peak periods and on weekends than the efficient benchmark, but that there was significant room for greater efficiency in a number of areas.
  
  The key finding was that ACTION operated at $31.08 million above the efficient benchmark, with operating costs per kilometre 7.6 per cent above the efficient benchmark in 2008/09. The reasons for ACTION's higher costs included:
  
  • ACTION drivers are paid well above the efficient benchmark - costing ACTION $8.5 million more per annum;
  
  • ACTION drivers spend 14 per cent of their time not driving (signing on/off, taking meal breaks, etc), compared to the efficient benchmark of 9.5 per cent - costing ACTION $2.19 million more per annum;
  
  • ACTION employs more mechanics, cleaners and refuellers per bus than the efficient benchmark - costing $1.18 million more per annum;
  
  • ACTION mechanical staff, including mechanics, cleaners and refuellers, are paid well above the efficient benchmark - costing ACTION $2.58 million more per annum;
  
  • ACTION drivers take more leave than the efficient benchmark - costing ACTION $3.57 million more per annum;
  
  • ACTION's higher proportion of air-conditioned buses than the efficient benchmark costs ACTION $1.1 million more per annum;
  
  • ACTION has a higher level of minor bus accident repair and bus cleaning than the efficient benchmark, costing $1 million more per annum;
  
  • ACTION services operate longer hours than the efficient benchmark, with about 23.3 per cent of ACTION's bus hours delivered after 7pm on weekdays and on weekends and public holidays, compared to the efficient benchmark of 17.7 per cent; and
  
  •ACTION buses get to their destination faster than the average bus, travelling at 25.74km/h, compared to 21.48km/h for the efficient benchmark.
  
  Mr Stanhope said the ACT Government was determined to create a genuinely sustainable transport system for Canberra - the first down-payment for which was made in this year's Budget. Crucial to delivery of that sustainable system was the creation of a greatly enhanced public transport system, and tackling push and pull factors in relation to parking.
  
  "In the context of that challenge, benchmarking data such as this is extremely valuable to the Government because it identifies areas in which improvements might be pursued," Mr Stanhope said.
  
  "The Government looks forward to working with ACTION and its drivers to deliver a bus system that serves our growing city in the best possible way."

[Buzz Killington]

So drivers, you're paid too much, have too much leave, drive buses that are too clean and cooled, get to your destinations quickly and drive too late at night.

AND THIS IS COSTING US MONEY!!

[belcodriver]

And it's purely coincidence this was released just as we are voting to strike.

It's good that we are paid "inefficiently" and we should fight hard to defend that.

[Barry Drive]

Why benchmark against PRIVATE bus operators? What would the outcome be if ACTION were compared against public operators (including contracted operators such as in Perth and Adelaide)? I doubt it would say that evenings and weekends were comparitively over-serviced.

[Bus 400]

And it's purely coincidence this was released just as we are voting to strike.

Especially since I have heard the rumours of what the ACT Government wants cut in the (what should be current) new EBA (HINT-just about everything that costs money that was mentioned in the CT).

I'll post the full CT article when I get the chance to cut it out.

[Snorzac]

It's called Canberra Times Online.....

[Bus 400]

.......The Government is also unhappy with the number of transport officers, mostly working at interchanges.

For more on this story, see the print edition of today's Canberra Times

[The Love Guru]

LOL, nothing like a well timed report to back up an argument. You must remember that in the government, you never commission a report to be done if you don't already know its outcome. I notice there is no mention that Canberra has the highest living costs in Australia and that drivers wages reflect that. Would also love to see how our hourly weekend rate compares to private companys as i know for a fact we are behind.

Great if you only work mon-fri, not so good for those guys working nights and weekends.

Be nice if they stopped wasting money on pointless reports and actually tried comparing apples with apples.

There are many places where ACTION can reel in its costs, particualrly in rostering practices, poor management and making "total life cost" purchases for buses rather than whatever they can get cheapest at the time. Most of this is the result of having public servants running a transport company, rather than getting in people that know what transport is about.

I believe that the Perth/Adeliade model is about as good as it gets, government control with private management.

[Barry Drive]

From the Canberra Times online

ACTION Buses is blowing more than 30per cent of its $100 million annual budget on waste and inefficiency according to independent research carried out for the ACT Government.

The study says that the transport company is paying $21million more than it should for staff with the biggest blowout of $14 million going in the wages and conditions of ACTION's 600 drivers which are way above industry standards.

The research by international management consultants Indec which also identified $10million in overheads above the benchmark standards, was issued as the Government is locked in tough enterprise bargaining talks with the Transport Workers Union, representing drivers.

Chief Minister Jon Stanhope told The Canberra Times yesterday that his Government was determined to get better value for money from the city's bus network and plough the savings back into the service.

The Indec consultants found that Canberra's bus drivers spent nearly 15per cent of their working days out of their vehicles, taking breaks or signing on or off, with industry best practice at less than 10per cent.

The study says that ACTION's 600 drivers earn more than their interstate counterparts, take more leave and spend more time away from the wheels of their buses when they are on the job.

[Barry Drive]

To address some of the points directly:

• ACTION drivers spend 14 per cent of their time not driving (signing on/off, taking meal breaks, etc), compared to the efficient benchmark of 9.5 per cent - costing ACTION $2.19 million more per annum;

Meal breaks are unpaid, so I'm not sure this is relevant. The main cause of non-driving hours is the layover between runs. Where this is excessive it can be blamed on inefficient timetabling; get the timetables right and you will reduce the non-driving hours. But the timetables need to reflect actual running conditions otherwise you can end up just making everything run late if a run is not correctly timed and there isn't a large enough gap until the next run. Also shifts must still allow drivers a reasonable toilet break.

• ACTION employs more mechanics, cleaners and refuellers per bus than the efficient benchmark - costing $1.18 million more per annum;

I do sometimes wonder if the refuellers could be made more efficient.

• ACTION's higher proportion of air-conditioned buses than the efficient benchmark costs ACTION $1.1 million more per annum;

This benchmark is for private operators. I doubt many people in Canberra would agree that ACTION has "too many" air-conditioned buses.

• ACTION services operate longer hours than the efficient benchmark, with about 23.3 per cent of ACTION's bus hours delivered after 7pm on weekdays and on weekends and public holidays, compared to the efficient benchmark of 17.7 per cent;

Two ways to look at this: either ACTION has too many services operating after 7pm weekdays and on weekends OR
ACTION does not have enough services operating prior to 7pm on weekdays. You decide.

[Barry Drive]

And some more:

Mr Stanhope said yesterday that key sticking points in the negotiations with the union were the weekend rosters, the proportion of full-time to part time drivers and the number of Transport Officers employed by the network.

''We want a genuine conversation about the proportion of full-time to part-time workers, we would like to negotiate that,'' Mr Stanhope said.

Mr Stanhope said that Deane's Buslines had a ratio of 20 part-time to 80 full-time drivers while ACTION had a 60/40 ratio.

Correct me if I'm wrong, but the 60/40 ration is 60 full time to 40 part time. This article implies it's the other way around.

Perhaps Jon Stanhope does not understand this or does not realise that the Government's offer is to reduce the ratio of full-time/part-time to 55/45 from the current 60/40. If Stanhope wants more full time drivers and fewer part time drivers, then BRING IT ON (so long as there are no redundancies).

The Government is also unhappy with the number of transport officers, mostly working at interchanges.

In the printed copy of the Canberra Times, Jon Stanhope was quoted as asking why are there 5 Transport Officers working at Belconnen Interchange when the Interchange has been demolished. No joke. The Transport Minister should not be publically admitting that he knows nothing about how his own public transport system works. Why would he think that the need for Transport Officers disappears just because the Interchange no longer exists? If anything ACTION should have more Transport Officers and/or Transit Police.

[Bus 400]

Ayway don't the Interchange supervisors look after the surrounding area? So the Belconnen Interchange Supervisors looks after the area north of Macarthur Avenue to the NSW border

[belcodriver]

Ayway don't the Interchange supervisors look after the surrounding area? So the Belconnen Interchange Supervisors looks after the area north of Macarthur Avenue to the NSW border

Yes. Belco are responsible for all of Belconnen and Gungahlin.

Currently the TOs' EBA specifies the number of positions. Management want to delete all references to numbers so that they can abolish some positions without breaching the EBA.

[Barry Drive]

Deane's is actually 20/80 full time to part time (which makes more sense), but their network structure is nothing like ACTION's so it is still not a valid comparison.

[Bus 400]

On the radio this morning, the TWU Rep (Klaus) questioned the timing of this report when ACTION Management are trying to cut some conditions in the new EBA.

[Barry Drive]

Everyone needs to remember that an EBA is an agreement. Conditions cannot be cut or weekend work made compulsory unless the workers vote in favour of the agreement. If the vote fails, then the current EBA remains in place. (Slightly off topic, I know.)

[smitho]

What is often lost sight of is that the current government is one of the parties to the current Agreement....it was negotiated in 2007.

[Bus 400]

Here is the much promised full article from The Canberra Times. The Union's reply can be found at http://actbus.net/forum/index.php?topic=2457.msg22135#msg22135 (Done so that this post doesn't stray away from point)