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Rail News Home Passenger Rail

2/24/2010



Rail News: Passenger Rail

New York MTA to furlough 1,100 workers


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Yesterday, the New York Metropolitan Transportation Authority (MTA) announced “aggressive plans” to reduce costs and boost efficiency that call for laying off more than 600 represented and non-represented administrative positions. The job cuts represent 15 percent of the agency’s administrative payroll. MTA also plans to furlough up to 500 MTA New York City Transit station agents.

“These actions were necessitated by the deterioration of the MTA’s financial situation over the past three months,” MTA officials said in a prepared statement. “The budget passed in December relied on a package of service cuts and these administrative layoffs to close a $383 million deficit. Since that time, an additional $378 million gap has developed this year based on revised state revenue projections.”

MTA will comply with applicable statutory and collective bargaining obligations covering certain employees, and non-represented workers who resign will be offered a severance package, the officials said.

“This is just the beginning of a comprehensive overhaul of how the MTA does business,” said MTA Chairman and Chief Executive Officer Jay Walder. “We will be reducing overtime, consolidating redundant functions and working with suppliers to lower costs.”