Articles: Queensland Rail bonuses

[ozbob]

From the Courier Mail click here!

Queensland Rail bosses and staff get $18m despite safety concerns

Queensland Rail bosses and staff get $18m despite safety concerns
Article from: The Courier-Mail

By Steven Wardill

November 04, 2008 11:00pm

QUEENSLAND Rail bosses and employees have pocketed almost $18 million in bonuses despite growing concerns over safety of Citytrain network.

New figures released in QR's annual report reveal the cost of bonus payments in the trouble-prone corporation leapt from $5 million in 2006-07 to $17.84 million in 2007-08.

The taxpayer-funded honey pot included $5.34 million for 391 executives and managers. The remaining $12.5 million was divided between QR's other 3756 employees who are eligible to receive performance payments. Queensland Rail last night defended the trebling of its performance bonus costs, saying they were based on the financial performance of QR as well as individual effort.

"These incentive payments are designed to focus attention on the performance and service outcomes of the organisation," a QR spokesman said.

But at the same time damning internal reports have emerged about safety, including figures showing QR drivers were running red lights at a rate more than 9 per cent above the national average.

As well as long-running concerns about bottlenecks on the coal network, QR also failed to meet its own target of 93 per cent for Citytrains running to within four minutes of schedule.

Treasurer Andrew Fraser last night distanced himself from the payments, saying that while he was jointly responsible for the performance pay policy, actual amounts were made by the board. He said QR had met relevant disclosure requirements. But Opposition transport spokeswoman Fiona Simpson said the Government needed to explain why it was handsomely rewarding QR executives as commuters suffered.

A QR spokesman said the increase in performance payments came after no bonuses were made to executives and managers in 2006-07 after a poor fiscal result in 2005-06.

Bonus payments to employees on salaries and awards increased in 2007-08 after an improved performance.

"Contracts and workplace agreements with performance payments are an essential tool for government-owned corporations to attract and retain talent who can command higher remuneration in the private sector," he said.

QR recorded a $77.9 million profit in 2005-06 and paid out $5 million in bonuses the next year, compared with $183 million profit in 2006-07 and $17.9 million in bonuses last financial year. When profit was $173 million in 2004-05 it paid $4 million in bonuses the next. Ms Simpson said commuters who crammed on to trains every day waiting for improved passenger services would be "scratching their heads wondering why QR staff are getting such big bonuses".

Comment:

Bonus payments appears to be an accepted business practice for higher level management in most organisations, companies and government these days.  It is based on key performance indicators and is a strategy to improve performance.  No payments were paid 2006-7 so there has been an improvement otherwise payments for  2007/8 would not have been forthcoming.  We are seeing better communication strategies being implemented (eg. CRG IPS) and I think a progressively more passenger focus (eg.  Traveltrain promotions and discounts).  Personally I don't have any real issues with the payments but do expect further positive improvements in timetabling, utilisation of present resources, continued customer focus as do all rail passengers.

The fact is QR freight is a major source of Government revenue and that contribution must be rewarded to attract and maintain high calibre staff at all levels.

I would like to see all rail staff rewarded.

[ozbob]

From Brisbanetimes click here!

QLD Rail bonuses 'off the rails'

QLD Rail bonuses 'off the rails'
Gabrielle Dunlevy | November 6, 2008

Queensland Treasurer Andrew Fraser has defended soaring bonuses for staff of the state's troubled rail service, saying they are necessary to lure quality employees.

Queensland Rail's (QR) annual report reveals bonus payments in the government-owned corporation leapt from $5 million in 2006-07 to $17.84 million in 2007-08.

QR made headlines this year after revelations it hosted an extravagant party for clients and leaked reports revealed a failing safety culture, with one in five employees injured per year and many safety procedures ignored.

Opposition Leader Lawrence Springborg has demanded QR justify its spending on bonuses while commuters endure overcrowded and unreliable trains.

Mr Fraser said QR's customer satisfaction and other measures of performance were taken into account when awarding the bonuses. As a result, the bonuses for the latest year had been paid at five per cent below the maximum possible level.

He said the bonuses were necessary to lure quality staff.

"In order to be able to recruit and retain the best people to manage QR, then this is a part of the commercial environment ... that's ultimately to the benefit of the taxpayer," Mr Fraser told reporters.

Mr Springborg said most companies wouldn't pay bonuses where so many customers were unhappy.

He said the justification of bonuses to lure staff was a "cop-out".

"We're talking about (paying) people who are actually there," Mr Springborg told reporters in Brisbane.

"I think that's probably a big cop-out.

"What we've got to have is the people being serviced by Queensland Rail actually being happy with the service, and they'll be happy for the bonuses to be paid."

The issue again raised questions around the way QR was being operated in the commercial environment, Mr Springborg said.

"Queensland Rail has actually subsidised the premier's Australia Day awards function," he said.

"I wouldn't have thought that is a role for Queensland Rail, and it just goes to show the way this government is using Queensland Rail as its own plaything and for its own convenience from time to time."

AAP

[#Metro]

Bonuses should be cut every time the trains run late, and every time they are overcrowded.
These should then be collected and spent improving rail services or put towards a special fund for subsidising transport/special events like the Ekka or Pensioner Travel on a Sunday.

Specific numbers $$$ were not mentioned...

Queensland Treasurer Andrew Fraser has defended soaring bonuses for staff of the state's troubled rail service, saying they are necessary to lure quality employees.

Queensland Rail's (QR) annual report reveals bonus payments in the government-owned corporation leapt from $5 million in 2006-07 to $17.84 million in 2007-08.

QR made headlines this year after revelations it hosted an extravagant party for clients and leaked reports revealed a failing safety culture, with one in five employees injured per year and many safety procedures ignored.

Opposition Leader Lawrence Springborg has demanded QR justify its spending on bonuses while commuters endure overcrowded and unreliable trains.

Mr Fraser said QR's customer satisfaction and other measures of performance were taken into account when awarding the bonuses. As a result, the bonuses for the latest year had been paid at five per cent below the maximum possible level.

http://www.brisbanetimes.com.au/news/queensland/qld-rail-bonuses-off-the-rails/2008/11/05/1225560941173.html

[ozbob]

From Courier Mail click here!

Queensland Rail's $18 million bonus bonanza backed

Queensland Rail's $18 million bonus bonanza backed
Article from: The Courier-Mail

Steven Wardill

November 05, 2008 11:00pm

THE treasurer has defended Queensland Rail's $18 million bonus bonanza, insisting the staff could have earned more had they performed better.

Following revelations QR's bonus costs soared from $5 million to almost $18 million, Treasurer Andrew Fraser yesterday said the performance payments ensured the corporation attracted first-class executives.

He said QR executives and employees were eligible for bonuses of up to 15 per cent of the company's profit, about $27 million, but had been paid only 10 per cent.

"In relation to the QR bonuses, they weren't paid at the maximum because the judgment taken by the board was that the maximum wasn't deserved because of gaps in performance," Mr Fraser said.

"Ultimately here what we need to do is assess both financial and other performance."

More than $5 million of the payments went to 391 QR executives and managers while the remaining $12.5 million was divided among the corporation's other 3756 employees eligible for bonuses.

The extent of QR's bonuses will outrage government employees such as ambulances officers and firefighters, who are struggling for a pay increase to keep pace with inflation.

The bonus revelation follows a series of damning details emerging about QR's safety, including a leaked report showing train drivers were running red lights at a rate more than 9 per cent above the national average.

QR has also recently been heavily criticised over executive entertaining largesse after it was revealed it had planned a swanky $30,000 Riverfire soiree for 60 people.

It also emerged yesterday that QR had spent $13,750 on the Premier's Australia Day Celebration Lunch.

Opposition Leader Lawrence Springborg questioned whether it was appropriate for QR to be funding a lunch on behalf of Premier Anna Bligh.

"I think it just goes to show the way that this Government is using QR as its own plaything and for its own convenience from time to time," Mr Springborg said.

He said that while bonuses were legitimate, it was clear the regime was failing if payments hit a record amid customer and commuter dissatisfaction.

"Certainly for bonuses to be paid, normally one would expect that the users of that particular service be very very happy with them," he said.

A spokeswoman for the Premier last night said QR had not gone ahead with the Australia Day lunch sponsorship in 2007-08 but had sponsored the event the previous year.