Ministerial Statement: Bonuses to be frozen

[ozbob]

http://www.scottemerson.com.au/media-releases/bonuses-to-be-frozen.html

Bonuses to be frozen

Friday, 27 July 2012 05:35

The Newman Government will take measures to freeze all Queensland Rail bonuses.

Transport and Main Roads Minister Scott Emerson said the bonus structure of Queensland Rail was not meeting community expectations, particularly in tough economic times.

"I have spoken to the chair of Queensland Rail and made it clear bonuses are only to apply where they are required under contracts set up by Labor," Mr Emerson said.

"I think most people would take a dim view of bonuses at a time when we are making hard decisions to get Queensland back on track."

In 2010/11 under Labor there were 1,337 bonuses costing $4.8 million despite claiming to link executive pay to performance.

"Labor announced in 2010 that executive pay would be linked to service delivery, the current leader of the Opposition didn't follow through and let bonus payment get out of control," he said.

"I accept that there are some circumstances where bonuses are required as part of an employment package, but $4.8 million is not an acceptable level, particularly when there is declining patronage and reliability reached a three-year low."

Last month the LNP ordered Queensland Rail to refocus its business on the delivery of frontline services after significant increases in corporate numbers over the past two years.

This included staffing increases of 68 per cent in the communication, stakeholder and marketing area, 122 per cent increase in finance area, and 66 per cent in strategy and corporate services area.

[somebody]

Must side with the LNP on this one.  QR have been starting down the Cityrail path.

[Fares_Fair]

Article: State Government winds back bonuses for Queensland Rail staff
From: The Courier-Mail
by Robyn Ironside
July 27, 2012 7:31AM

http://www.couriermail.com.au/news/state-government-winds-back-bonuses-for-queensland-rail-staff/story-e6freon6-1226436320092

FAT bonuses paid to Queensland Rail employees in years gone by are being drastically wound back as the Newman Government examines expenditure within the passenger train service.
Last year, 1337 staff each earning an average $100,000 shared $4.8 million in "performance bonuses".

The previous year, when QR National was still part of Queensland Rail, more than 5000 employees pocketed an average of $4576 each in reward money.

With dwindling patronage and below average on-time performances plaguing Queensland Rail, Transport Minister Scott Emerson said the Newman Government would take measures to freeze all bonuses.

"I think most people would take a dim view of bonuses at a time when we are making hard decisions to get Queensland back on track," said Mr Emerson.

He said some executives had contractual arrangements that included the payment of bonuses, that the Government was obliged to honour.

"I have spoken to the chair of Queensland Rail and made it clear that bonuses are only to apply where they are required under previously established contracts," said Mr Emerson.

"Labor announced in 2010 that executive pay would be linked to service delivery, however the current leader of the Opposition didn't follow through and let bonus payments get out of control."

The Courier-Mail understands Queensland Rail's senior executives are in line for $2 million in bonuses worth between $15,000 and $45,000.

They include 12 managers paid salaries of more than $300,000 each.

A Queensland Rail spokesman said the longstanding process was for all discretionary performance payments to be submitted to the board for approval.

"No proposal has been submitted to the board," he said.

The latest passenger load survey for the first three months of this year, shows morning peak patronage fell by 1.5 per cent while the afternoon peak rose 1.2 per cent.

Roma Street and Central continue to be the busiest stations for passenger movements while Thagoona and Karrabin were the worst.

The survey did not include Traveston station which averages four people a week, and Queensland Rail has recommended be closed.

Queensland Rail is believed to be facing substantial cuts by the Newman Government with as many as 2200 jobs to be abolished from the organisation of about 7200 people.

Mr Emerson has previously criticised the "bloated bureaucracy" and big increases in "non-frontline" workers in roles such as marketing and administration.

[Fares_Fair]

N.B.
From the story above ...

"The survey did not include Traveston station which averages four people a week, and Queensland Rail has recommended be closed."   

It appears that passenger surveyors never make it past Nambour.
Gympie North to Yandina passenger statistics are NOT included in the data.


Sunshine Coast ignored, what gives us that impression?

[ozbob]

From the Brisbanetimes click here!

Poor results linked to cancellation of QR bonuses

Poor results linked to cancellation of QR bonuses

Date July 27, 2012 Marissa Calligeros

Queensland Rail executives will not receive bonuses this year, unless expressly stipulated in their contracts, due to the service's poor performance.

Transport Minister Scott Emerson this morning announced the government would take measures to freeze all bonuses, saying the previous Labor administration had allowed the supplementary payments get out of control.

He said 1337 bonuses totalling $4.8 million were paid to QR executives in the 2010/2011 financial year.

That figure, he said, was not ''in line with community expectations'', particularly in tough economic times.

''I accept that there are some circumstances where bonuses are required as part of an employment package, but $4.8 million is not an acceptable level, particularly when there is declining patronage and reliability reached a three-year low,'' Mr Emerson said in a statement this morning.

''Labor announced in 2010 that executive pay would be linked to service delivery, the current leader of the opposition [former Transport Minister Annastacia Palaszczuk] didn't follow through and let bonus payment get out of control.''

Owen Doogan of the Rail, Tram and Bus Union said a freeze on executive bonuses should have come well before a freeze on recruitment to fill vacant positions.

''We have no difficulty with bonuses being frozen, but the RTBU has significant difficulty in the recruitment of employees being frozen by the chief executive, which is causing significant stress,'' he said.

''The idea of analysing the needs of an organisation and filling positions on the basis of that is quite an adequate thing to do. The idea of freezing the filling of positions and therefore putting stress on the workplace health and safety and wellbeing of the employees is disgraceful.''

A spokesman for Opposition Leader Annastacia Palaszczuk said executives' salaries were low when compared to others in the wider industry.

"I understand the executive salaries in question, which are benchmarked against industry, are at the lower end of the scale. And bonuses are capped at 15 per cent, which is below the wider market," the spokesman said.

"Bonus payments are generally part of the employment packages of the executives and are approved by the Office of Government Owned Corporations before going to shareholding ministers for sign-off.

"Mr Emerson needs to get a new script and stop playing the tired old blame game."

Read more: http://www.brisbanetimes.com.au/queensland/poor-results-linked-to-cancellation-of-qr-bonuses-20120727-22wx4.html

[ozbob]

Sent to all outlets:

28th July 2012

Please stop bashing Queensland Rail

Greetings,

We are all getting tired of the constant blame game by Government and bashing Queensland Rail.

The Minister for Transport needs to check out train on time performance in other states.

Perth has the best, then followed by Brisbane.  The others, Melbourne, Sydney and Adelaide are miles behind.  This is despite Queensland Rail having a very tight definition of on time, within 3 minutes 59 seconds. Tighter than Melbourne and Sydney for example.

The fact that Queensland Rail can achieve better ontime performance than other states is a credit to their operation.  Particularly when you consider the amount of freight traffic on the network.  The Perth network is essentially free of freight conflicts and a relatively modern network.  Our rail network is over a 100 years old.  It has choke points.  Many of the stations were built in a different era.   It takes time and funding to bring it up to speed.

Premier Newman needs to lead.  A man with 13 years odd experience as commissioned officer in the Army should know what is needed in terms of leadership.

Ministers are our representatives.  They also need to stand up for the organisations in their portfolios.   They need to do accurate research and get up to date with the real picture.

The media would be well advised to do that as well.

Patronage decline is related to the overall poor frequency and the ridiculous fare structure.  Areas where the Minister for Transport can act.    Actions speak louder than whines.

Best wishes
Robert

Robert Dow
Administration
admin@backontrack.org
RAIL Back On Track http://backontrack.org

[#Metro]

If anything it should be Emerson and Caltabiano who takes the pay cut. THEY'RE RESPONSIBLE FOR THIS PORTFOLIO!

[somebody]

Perth has the best, then followed by Brisbane.  The others, Melbourne, Sydney and Adelaide are miles behind. 

OTP perhaps, but I would put QLD behind WA, NSW, VIC on almost any reasonable measure.  Cost per trip, cost per passenger-km, trips per capita, passenger-km per capita.  What is your measure of choice?

[ozbob]

Perth has the best, then followed by Brisbane.  The others, Melbourne, Sydney and Adelaide are miles behind. 

OTP perhaps, but I would put QLD behind WA, NSW, VIC on almost any reasonable measure.  Cost per trip, cost per passenger-km, trips per capita, passenger-km per capita.  What is your measure of choice?

I was referring to OTP.  The rail network in SEQ is of course poorly performing as a consequence of the frequency and wide area. Not much point in bashing QR when they forced to operate as they do.  Governments are elected to hopefully improve services, it is their mantra.  Haven't seen any evidence of that have we?  Just threats and insults.

TransPerth, recently lauded (for good reason) by the Feds only achieves 21% recovery of operating expenses from the fare box.
http://www.pta.wa.gov.au/Portals/0/annualreports/2011/pta2011v4/transperth.html

TransLink is 24%.
http://translink.com.au/resources/about-translink/reporting-and-publications/2011-12-quarterly-report-jan-to-mar.pdf

[ozbob]

One wonders if the increase in FG frequency will be achieved.  There is a staff recruitment freeze apparently.  I am sure the intention of the Government was to do it a lot sooner than October, but I think it just couldn't be done any earlier without impacts on the existing services.

[somebody]

Well suggestions of increased frequency are always met with "It can't be done", not "That would require x".  There is a difference if you ask me.

[ozbob]

QR have to push constantly to put on services.  There is a stumbling block above QR.

[#Metro]

TransPerth, recently lauded (for good reason) by the Feds only achieves 21% recovery of operating expenses from the fare box.
http://www.pta.wa.gov.au/Portals/0/annualreports/2011/pta2011v4/transperth.html

TransLink is 24%.
http://translink.com.au/resources/about-translink/reporting-and-publications/2011-12-quarterly-report-jan-to-mar.pdf

Yes, but for the same cost recovery, Perth has 2x the rail services and a decent outer urban bus network.

[ozbob]

Which goes to show why frequency improvements are needed!

[ozbob]

From the Couriermail Quest click here!

Rail advocate Robert Dow says there is evidence Brisbane commuters enjoy a better service than many others

Rail advocate Robert Dow says there is evidence Brisbane commuters enjoy a better service than many others

    by: James Drew, South-West News
    From: Quest Newspapers
    August 02, 2012 12:01AM

Mr Dow, of RAIL Back On Track, believes Queensland Rail (QR) is among the best performing services in the nation and deserves more respect.

He said Brisbane ejnjoyed a better on-time tail record than its southern capital city sister and second only to Perth.

As an outspoken "constructive critic" of the QR's transport network, Mr Dow, of Goodna, says reports and statistics consistently show the Brisbane network has few equals when it comes to punctual service.

He says a recent Federal Government report into urban rail in Australia showes Brisbane has a better on-time rail record than networks in Melbourne, Sydney and Adelaide, with trains arriving with 3 minutes 59 seconds of their timetable.

"Some criticism is warranted but we think it's gone a little over the top," he said.

While Brisbane preformed worse than Perth, Mr Dow said it was understandable given our ageing infrastructure and the juggling act needed to run a shared freight-passenger network.

"They're trying to run trains as best they can at peak as close together as they can," he said. "To actually achieve the levels they do under the circumstances is pretty good."

He called for an end to the "constant bagging" of the QR workforce by the Newman Government, which is planning to slash 1970 QR jobs to save $287 million over four years.

Transport Minister Scott Emerson told State Parliament TranLink would be absorbed into a wider service to reduce duplications and drive efficiency.

"Under the restrucuture, all Queensland Government transport services will be integrated for the first time," he said.

Mr Dow agreed with the principal of the merger but has called for more details on how it would be achieved.

"There's been a fare bit of hyperbole but very little detail with respect to the merger," Mr Dow said.

"We would ask for the Minister of Transport to put out a document outlining the advantages and disadvantages of what they're doing.

"There is a lot of duplication clearly, so there probably are some efficiency gains to be got.

"The benefits are that you'll get a standardised system throughout Queensland, which means a gocard may get you from Brisbane all the way to Cairns."

[ozbob]

From the Brisbane mX 8th August 2012 page 4

Rail pay quagmire