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The overall EVA has increased during FY 2008-2010, but has decreased since 2011, with the sharpest in FY 2012. In fact, looking at FY 2008-2012, SMRT’s EVA has suffered a 10.75% decrease. The story gets better as we look at EVA per employee, with a decrease of 28.24% over this period, while the value added per $ of employment costs has decreased by 12.09%. This means SMRT has become more inefficient in the usage of its employees, and the overall labour productivity has steadily decreased over the years.
This is perhaps counter-intuitive, because SMRT has in fact “increased productivity of the workers” by changing from a six-day work week from a five-day one. In fact, Kuek said that the shift to six days was “necessary to meet the demands for rising bus ridership and service standards, and to ensure that the work-hours for all our service leaders are spread out more evenly”. But Mr. CEO, why did your EVA per employee dip then? I wonder if LTA and Spring Singapore can lead an investigation and consult SMRT on how to raise labour productivity despite all the overtime the drivers has clocked. Perhaps it is not that the drivers are not productive, but the fact that other employees, who are deadwood, are still being paid high salaries.
The average wage of bus drivers is $1300, and SMRT has a total pool of 8000-odd drivers. An increase in 10% of the salary will mean an increase in operating cost of 0.1*1300*8000 = $1M. A large number it seems, but let’s not forget that the profit after tax of SMRT is $119.9M. $1M is in fact a drop in the ocean. So why is Minister Lui advocating an increase in fares? Is he looking after SMRT’s shareholders’ interests instead? Let’s not forget that the majority shareholder of SMRT is Temasek Holdings.
It is mind-boggling that Minister Lui ignores the profitability of the SMRT despite glaring inefficiencies revealed by SMRT’s decreasing productivity numbers, but instead opted for a fare increase to solve the problem.
Details here - http://wanderfool.blog.com/2012/12/07/smrts-mindblogging-numbers/
This is perhaps counter-intuitive, because SMRT has in fact “increased productivity of the workers” by changing from a six-day work week from a five-day one. In fact, Kuek said that the shift to six days was “necessary to meet the demands for rising bus ridership and service standards, and to ensure that the work-hours for all our service leaders are spread out more evenly”. But Mr. CEO, why did your EVA per employee dip then? I wonder if LTA and Spring Singapore can lead an investigation and consult SMRT on how to raise labour productivity despite all the overtime the drivers has clocked. Perhaps it is not that the drivers are not productive, but the fact that other employees, who are deadwood, are still being paid high salaries.
The average wage of bus drivers is $1300, and SMRT has a total pool of 8000-odd drivers. An increase in 10% of the salary will mean an increase in operating cost of 0.1*1300*8000 = $1M. A large number it seems, but let’s not forget that the profit after tax of SMRT is $119.9M. $1M is in fact a drop in the ocean. So why is Minister Lui advocating an increase in fares? Is he looking after SMRT’s shareholders’ interests instead? Let’s not forget that the majority shareholder of SMRT is Temasek Holdings.
It is mind-boggling that Minister Lui ignores the profitability of the SMRT despite glaring inefficiencies revealed by SMRT’s decreasing productivity numbers, but instead opted for a fare increase to solve the problem.
Details here - http://wanderfool.blog.com/2012/12/07/smrts-mindblogging-numbers/
I supposed TS or the blogger made a typo. 800 probably correct.
