This paper reviews the way in which costs have changed since deregulation. Using information collected by interviews with management and union representatives in 46 companies operating within the metropolitan areas, it attempts to explain how published cost savings have been achieved and particularly the impact of changes in wages and working practices within the context of deregulation and privatisation. The paper concludes that amongst metropolitan PTCs almost 19 per cent of a total unit cost reduction of 31 per cent was achieved by productivity improvements, particularly among non-platform staff. As for reductions in wages, these can only account for 4-8 per cent of cost savings while non-labour costs account for less than 5 per cent. With the still to be privatised Scottish Bus Group having only achieved marginal gains in productivity, this indicates that the process of privatisation may be the most influential factor in reducing costs.(Author/publisher).
Abstract