June 27, 2011

Chicago Transit Authority cuts management positions

The Chicago Transit Authority (CTA) has eliminated 54 non-union positions, including 26 manager-level positions, in an effort to reduce costs, transit officials said today. In addition, the CTA is reducing expenses which, when combined with personnel moves, will save the agency $15 million annually. The reductions meet Mayor Rahm Emanuel’s target for leaner senior management at city agencies, officials said.
 
Nearly half the cost savings are from personnel reductions. CTA will save approximately $7.6 million in salaries and benefits — a 10 percent reduction in senior management. None of the positions are safety related or directly impact service. Additional savings of $900,000 in labor and benefit costs will be achieved by delaying hiring for open positions that have been deemed necessary. A reduction in materials, utilities and contractual services expenses will further reduce costs for 2011.
 
“The CTA faces severe financial challenges and cannot wait for next year’s budget to begin making cuts,” said CTA President Forrest Claypool. “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 is still in the early stages of development, but several short-term solutions used to balance the budget in past years will no longer be options. Going forward, staff has been asked to identify additional personnel and expense reductions for 2012.

deli.cio.us digg it stumble upon newsvine
[ Request More Info about this product / service / company ]


E-NEWSLETTER

Receive the latest Metro E-Newsletters in your inbox!

Join the Metro E-Newsletters and receive the latest news in your e-mail inbox once a week. SIGN UP NOW!

View the latest eNews
Express Tuesday | Express Thursday | University Transit

White Papers

Mass Transit Capital Planning An overview of the world-class best practices for assessing, prioritizing, and funding capital projects to optimize resources and align with the organization’s most critical immediate and long-term goals.

More white papers


STORE
METRO Magazine - April 2013

METRO Magazine
Here are the Highlight:
  • BRT Survey: Coordination Construction Top Challenges
  • Hydrogen Fuel Cells Gather Steam as Viable Fleet Option
  • Alternative Project Delivery Opens Doors to Innovation
    And much more…
  •  
    DIGITAL EDITION

    The full contents of Metro Magazine on your computer! The digital edition is an exact replica of the print magazine with enhanced search, multimedia and hyperlink features. View the current issue