Bus Drivers Pickett Dallas Bus Station

Greyhound bus drivers picketed Dallas’ downtown bus station this morning, protesting the company’s use of replacement drivers. “Greyhound drivers with decades of seniority have lost their runs,” according to a release from the Local 1700 Amalgamated Transit Union. “The company has left us no choice but to escalate our fight back.” Read More>>>.

What Happened to Greyhound US Drivers' Pension Plan

One business that is having trouble funding its pensions is Greyhound Lines, the bus company, which has gone through years of labor strife and bankruptcy. Several years ago, it quietly managed to get permission from Congress to stop putting more money into its drivers' pension fund. In essence, the Greyhound provision lets the company act as if its pension plan is fully funded, when in fact it is not. Greyhound, meanwhile, is seeking to expand its own break and to make it permanent, because the original exemption is set to expire in 2010. Now, as in 1997, Greyhound says special treatment is necessary because its plan covers an unusually old group of workers, whose life expectancies are shorter than national norms for all pension participants. Workers who won't live long enough to cash many pension checks don't require very big pension contributions. Read More>>>

U.S. market a bright spot for UK transport operators

UK's bus industry has come under pressure as austerity measures have forced the government and local councils to reduce subsidies to bus operators. FirstGroup issued a profit warning at the end of March that triggered a spate of broker downgrades and wiped a third off FirstGroup's shares. The U.S. market has been a bright spot for UK transport operators. National Express reported a 5 percent increase in North America revenue last month while FirstGroup said its U.S. school bus and Greyhound operations continued to perform well. Read More>>>

First Group in Trouble - Weak Balance Sheet Unsustainable Dividend,

A profit warning at the end of last month has shattered the confidence of many investors. With lots of debt, a weak UK bus division and the prospect of losing some or all of its rail franchises, the market seems to have made its mind up: FirstGroup’s juicy dividend is not sustainable. FirstGroup’s main problem can be summed up in one word: debt. After taking on loads of debt by buying those American bus companies during 2007 and 2008, the company was left with a weak balance sheet. Things have not improved since. The company has not generated enough surplus cash flow to pay down debt to sensible levels. Unless FirstGroup can retain a large chunk of its current rail profits, a big dividend cut is probably on the cards. And this might be very hard to achieve. Two of its rail franchises – First Great Western and First Capital Connect – expire in 2013. Competition for these franchises is tough, with lots of foreign interest. It is unlikely that current profit levels can be maintained even if its franchises are retained. Given that a lot of FirstGroup’s problems seem to be self-inflicted, it raises the question whether another management team could do a better job. The company has some good assets that could see the company broken up and sold off. Read More>>>