Tuesday, May 10, 2005

Incentives to avoid strikes

Auckland City Council has decided that it doesn't want any more bus strikes - and so will be instructing ARTA to include a penalty clause for non-performance in future contracts for bus services. Which is good, but it really does beg the question of why the hell Stagecoach isn't subject to such a clause already? As we've just had graphicly demonstrated, the buses being down causes large amounts of chaos and frustration; contractors should therefore have an incentive to ensure that they keep running.


Hear hear, and the ARC/ARTA should demand a refund for non-peforming days. We paid for it through rates and are now paying extra in taxi fares due to the strike. Or has the subsidy gone straight to Glasgow HQ?

Posted by Hans Versluys : 5/10/2005 01:36:00 PM

keep the buses off the road The journey to work and home has been so much better And scrap those busways and park and ride stations on the Northern Noones going to use them Build more lanes Stuff the flat earthers and other antifreedom of movement wankers.Cars for everyone Cars for ever

Posted by Anonymous : 5/10/2005 02:50:00 PM

Hmm if stagecoach can be penalized for strikes by the union surely stagecoach should be able to sue the union for those costs?

Anyway stagecoach will jsut adjust its fees to cover the cost - having such penalty clauses will probably just increase the cost to the city - as would increases in wages for bus drivers (assuming no other company thinks it can screw down the drivers better than stagecoach can).

Posted by Genius : 5/10/2005 06:43:00 PM

Genius et al:

The fares they can charge are set by the ARC. I have spoken to the CEO of ARTA and a Stagecoach operations staff member in my fruitless and doomed effort to offer a consumers solution to the strike which is here.

Posted by Bomber : 5/10/2005 07:32:00 PM

I know selwyn - I expect they also recieve additional subsidies (since buses almost always make a loss) But in the long run the city including its poepel must pay the bus company enough to cover its costs plus a reasonable profit. so it is the city plus the consumer that pays in the end.

Posted by Genius : 5/11/2005 07:10:00 AM