Baumann & Sons Buses Inc. has cut its workforce by 134 people, having recently given layoff notices. These bus driver layoffs are affecting employees who were part of a union working in the Nassau County School District.
More interesting is the timing of the layoffs, which were announced only a week after bus drivers returned from a two-week strike that affected more than 20,000 bus routes.
Baumann & Sons Buses Layoffs: What About Employees After the Strike?
While employees returning to work after the strike is over is great for everyone, the success of the business relies on contracts to ensure constant revenue and customer satisfaction.
However, due to the disruption the strike caused for students, Baumann & Sons has lost two contracts. And what’s more, those lost contracts have been picked up by competitors. As a result, the company has lost a portion of its pre-strike market share and left no choice but to hand out 134 pink slips.
What Could This Mean for Baumann?
There are three reasons why Baumann’s headcount and revenue can continue to fall.
First, the two weeks of no service will be remembered by Baumann’s customers when it comes time to negotiate a new contract. They’ll probably want a lower price as a result, and the resulting smaller margins would mean less money available for wages.
Second, those same customers could threaten to leave entirely. This is more likely than you think, given that Baumann & Sons has already lost out on two contracts. This puts a lot of bargaining power in the hands of customers, possibly leaving Baumann with no choice but to do anything in its power to keep as many contracts as possible.
Lastly, employees could decide to leave the company of their own volition. This would likely be due to competitors being known to offer higher wages and better benefits.
“Records: Baumann lays off 134 bus drivers after strike,” Newsday, November 21, 2017.