Railways of Belj Develop Innovative Method to Reduce Worker Compensation
Belarusian Railway Faces Financial Struggles; Cost-Cutting Measures Detailed
In a critical financial situation, Belarusian Railway (BelRail) is reportedly considering cost-saving measures, with the Union of Railway Workers of Belarus highlighting potential reductions in bonuses and employee payments as one option.
According to the Union, BelRail management has already been making deductions on repairs and investments, potentially compromising service quality and safety. The organization has also enacted other measures to sustain operations.
Labor and social contributions are the primary spending categories for BelRail, due to the labor-intensive nature of the railway industry. To trim expenses, BelRail has announced unpopular measures, mainly affecting employees' wages, with the management of BelRail, Valeriy Verenich, issuing an order to discontinue payments or abolish bonuses for professional skills, class, and qualification level for all employees beginning June 1.
The Union estimates that this measure will result in significant losses for BelRail workers, ranging from 250 to 500 rubles and beyond. Additionally, the Union suggests that other cost-cutting measures may be on the horizon, choosing between material assistance for vacations and payments to retiring workers.
To ensure BelRail's financial stability, it appears that the organization is considering multiple strategies to reduce operational costs and enhance revenue. These may include streamlining maintenance activities, improving energy efficiency, cutting non-essential procurement, workforce rationalization, service and network adjustments, administrative expense reductions, digitization and automation, increasing freight tariffs, exploring new business streams, postponing capital projects, and focusing on critical investments.
The Union of Railway Workers of Belarus and BelRail's management were approached for further comment.
Beyond eliminating employee bonuses, BelRail may implement a multi-faceted strategy to cut costs, focusing on operational efficiencies, workforce adjustments, service rationalization, administrative expense reductions, and strategic reprioritization of investments. The aim of these measures is to stabilize Belarusian Railway's finances while maintaining crucial services and preparing the company for long-term sustainability.
In their endeavor to stabilize Belarusian Railway's finances, the organization is considering a comprehensive approach, comprising operational efficiency improvements, workforce adjustments, service rationalization, administrative expense reductions, and strategic reprioritization of investments. This strategy, if implemented, aims to maintain essential services while ensuring long-term financial sustainability.
With the labor industry constituting a large portion of BelRail's expenditure, the management is looking towards various avenues to trim expenses, including potential changes in labor contributions and a focus on digitalization and automation for administrative streamlining.
