Over the first four months of 2009, OAO RZD has saved 46.5 billion roubles by cutting operational costs, The First Vice-President of the Company, Vadim Morozov, announced during an expanded session of the RF Transport Ministry Board.
Mr V. Morozov reminded that in the 4th quarter of 2008 the work of Russian Railways was badly affected by the world financial and economic crisis, just like the country as a whole.
In 2009 RZD continues to suffer a fall in the amount of cargo needed to be transported. Since the beginning of the year cargo handling has fallen by 25 %; and passenger demand by 11.2 %.
In order to balance the books, the company has been compelled to reduce the number of major repairs carried out; optimize purchasing, limit the growth of wages and maximise the use of personnel.
“Understanding our responsibility before society and the state, the company has done everything possible to maintain existing employment levels and social guarantees to its employees. Instead of layoffs, the main ways RZD has used has been to limit recruitment (except for graduates of high and technical schools trained to targeted requirements and employees returning from military service) and to redistribute employees according to the changed conditions,” noted V.Morozov.
According to the Company’s Anti-Recessionary Program, annual economic savings on operational costs are planned at 173.1 billion roubles,” announced the First Vice-President of OAO RZD.
Mr V. Morozov reminded that in the 4th quarter of 2008 the work of Russian Railways was badly affected by the world financial and economic crisis, just like the country as a whole.
In 2009 RZD continues to suffer a fall in the amount of cargo needed to be transported. Since the beginning of the year cargo handling has fallen by 25 %; and passenger demand by 11.2 %.
In order to balance the books, the company has been compelled to reduce the number of major repairs carried out; optimize purchasing, limit the growth of wages and maximise the use of personnel.
“Understanding our responsibility before society and the state, the company has done everything possible to maintain existing employment levels and social guarantees to its employees. Instead of layoffs, the main ways RZD has used has been to limit recruitment (except for graduates of high and technical schools trained to targeted requirements and employees returning from military service) and to redistribute employees according to the changed conditions,” noted V.Morozov.
According to the Company’s Anti-Recessionary Program, annual economic savings on operational costs are planned at 173.1 billion roubles,” announced the First Vice-President of OAO RZD.