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Rail News: Passenger Rail
6/28/2011
Rail News: Passenger Rail
CTA to cut 10 percent of senior management positions
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Yesterday, the Chicago Transit Authority (CTA) announced it will eliminate 54 non-union positions, including 26 management posts, and reduce other expenses as part of an effort to shave $15 million from the agency’s 2011 budget.
The reductions meet Chicago Mayor Rahm Emanuel’s “target for leaner senior management at city agencies,” CTA officials said in a prepared statement.
The agency will save $7.6 million in salaries and benefits, amounting to a 10 percent reduction in senior management. None of the positions are safety related or directly impact service, CTA officials said.
In addition, $900,000 in labor and benefit costs will be saved by delaying the hiring of certain open positions, as well as cutting some expenses related to materials, utilities and contract services.
“The CTA faces severe financial challenges and cannot wait for next year’s budget to begin making cuts,” CTA President Forrest Claypool said. “By reorganizing and streamlining, we gain immediate savings with no adverse effect on the current level and quality of service provided to customers.”
The 2012 budget still is in the early stage of development, CTA officials said.
The reductions meet Chicago Mayor Rahm Emanuel’s “target for leaner senior management at city agencies,” CTA officials said in a prepared statement.
The agency will save $7.6 million in salaries and benefits, amounting to a 10 percent reduction in senior management. None of the positions are safety related or directly impact service, CTA officials said.
In addition, $900,000 in labor and benefit costs will be saved by delaying the hiring of certain open positions, as well as cutting some expenses related to materials, utilities and contract services.
“The CTA faces severe financial challenges and cannot wait for next year’s budget to begin making cuts,” CTA President Forrest Claypool said. “By reorganizing and streamlining, we gain immediate savings with no adverse effect on the current level and quality of service provided to customers.”
The 2012 budget still is in the early stage of development, CTA officials said.
