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Rail News: Passenger Rail

New York MTA set to save $54 million in overtime costs


Yesterday, New York’s Metropolitan Transportation Authority (MTA) announced that it expects to reduce 2010 overtime expenses by $54 million compared with 2009 costs, an 11 percent reduction.

The savings result from a variety of changes to policies and operating procedures. MTA New York City Transit is expected to save $24 million by identifying the work places with the highest levels of sick leave, limiting overtime only to critical activities such as safety inspections and air conditioning maintenance, and filling critical vacancies that were creating a high need for overtime, MTA officials said in a prepared statement.

MTA Long Island Rail Road is projected to save $13 million and MTA Metro-North Railroad is projected to save $3 million.

Reducing unnecessary overtime has been an MTA priority as the agency looks to improve efficiency and reduce costs. MTA’s 2010 budget addressed the issue with a $24 million reduction. That projection was revised in May to reflect a more aggressive approach, with an additional $22 million savings anticipated. MTA officials have announced that that target also will be exceeded, with a total of $54 million saved.