Judicial administrator Remus Borza said on Friday that Bucharest public transport operator STB has effectively become a 'family company,' revealing that 4,876 employees have family ties within the company, including roughly 1,400 husband-and-wife couples.

'STB is a family company. I wouldn't want to call it a company of clans, because then I will be misinterpreted again. 4,876 are in kinship relations with other STB employees, of whom about 1,400 are husband and wife. There are more than 30 families, each with over 10 members employed by STB. We even have a record-holder, with 20 employees from the same family,' Borza told a press conference at the Bucharest City Hall.

According to him, as of September 8, STB had generated revenues of RON 1.2 billion, while posting losses of RON 767 million. The wage bill for the first 10 months of the year amounted to RON 1 billion, representing 81% of revenues, for a workforce structure comprising 10,137 positions.

The company's average gross salary stands at RON 10,700, while employees benefit from 36 different bonuses and allowances, Borza said. As a result, some drivers recorded gross monthly earnings exceeding RON 25,000 in certain months.

He noted that the newly negotiated collective labour agreement reduced the number of bonuses from 36 to 32, generating savings of approximately RON 25 million.

Borza described STB's staffing structure as 'oversized and overpaid,' arguing that the company could operate 'better and more efficiently' with fewer employees.

Out of the total 10,137 positions, the company has already eliminated 919 vacant posts, while redundancy notices have been issued for another 796 positions.

The restructuring also abolished 44 management positions out of a total of 163, with Borza announcing a further round of reforms early next year that will cut the number of directors by half.

'We abolished the entire department of general advisers, who weren't doing much. You know yourselves what kind of specialists they were,' he said.

Among the positions being eliminated are 288 administrative staff posts, 24 courier positions, 12 boiler operator jobs out of 88, 17 statistician positions, 4 manual bookbinder posts, 44 data entry operator positions out of 145, 120 secretary positions, 58 cashier jobs out of 374, 28 economist and accountant positions out of 293, 37 welder jobs out of 138, 69 mechanical fitter positions out of 442, 10 maintenance electrician posts out of 166, and 16 auto mechanic positions out of 290.

Borza was particularly critical of URAC, STB's repair plant, describing it as 'totally inefficient' after achieving only 39% of its planned production target over a 10-month period.

'We showed up there three weeks ago at 9:30 a.m. because we didn't want to catch them completely off guard. Out of around 500 master craftsmen at URAC, not one was at a workbench,' he said.

Referring to inspections carried out on January 20, Borza added that controllers found widespread absenteeism and alcohol consumption among workers. 'About 30 left when they saw the inspection team coming. They ran away, jumped the fence. The inspectors came back the next day and caught another 51,' he claimed.

While acknowledging that STB, which operates 1,250 vehicles daily, genuinely needs around 290 auto mechanics, Borza argued that 70% of repair work has been outsourced to 21 private contractors, whom he referred to as 'well-connected cronies.'

He further alleged that STB is not even authorised by the Romanian Automotive Register (RAR) to carry out major repairs.

'This is the company managing the largest vehicle fleet in Bucharest, yet it does not have RAR authorisation to repair engines or gearboxes. What do they do? They grease parts, check a contactor, tighten a bolt. That is what 1,500 repair specialists do. They don't really have work to do because private companies also have to make a living,' he said.

Borza also claimed that the operator records an average of three to four minor collisions every day inside depots and breaks three to four windshields daily, alleging that repair contracts are subsequently awarded to private firms.

The judicial administrator said STB employs 4,358 drivers and tram operators for a fleet of 1,250 vehicles. As part of the restructuring, 50 tram drivers and 120 bus and trolleybus drivers will be laid off. At the same time, however, drivers' and tram operators' incomes will increase by 16% from January 1.

Borza said dismissals would target employees with poor annual evaluations, those receiving both a pension and salary, workers nearing retirement, employees with disciplinary records, staff found under the influence of alcohol, and drivers under criminal investigation for fuel theft.

'I tried to convey a message, and I think it is clear enough: laziness, theft and incompetence at STB are over. I will no longer tolerate hooliganism, inappropriate behaviour, fuel theft or vandalism,' he said.

Under the previous collective labour agreement, employees affected by restructuring were entitled to 16 to 20 severance salaries. The new agreement reduces that entitlement to two to four salaries, depending on seniority. Borza said that under the previous rules STB would have had to pay RON 160,000 to RON 200,000 in severance compensation for the upcoming layoffs.

Bucharest Mayor Ciprian Ciucu said STB had accumulated a 'very poor' financial situation over many years and that the City Hall would seek to 'save the company from bankruptcy.'

He stressed, however, that the ongoing insolvency proceedings would not affect public transport services in the capital. AGERPRES (RO - writing by: Irinela Visan; EN - writing by: Simona Klodnischi)