CTA eliminates 200 positions to save about $22 million annually
SUN-TIMES MEDIA October 10, 2011 10:50AM
Facing a $277 million budget shortfall, CTA President Forrest Claypool (pictured in June) is challenging unions: “It’s only in the ‘Alice in Wonderland’ world of these crazy work rules that people are paid millions of dollars to do nothing. | Jean Lachat~Sun-Times
Updated: January 23, 2012 3:19AM
The CTA on Monday announced it has eliminated over 200 positions — including senior-level positions — to “drive efficiencies” while preparing to release the 2012 budget.
Sick and vacation policies have also been revised, moves the CTA says will save the financially troubled agency tens of millions of dollars, according to a CTA release.
The personnel cuts will save the CTA about $22 million annually at a time when the agency is facing a $277 million deficit, while the sick and vacation leave policy changes will save an estimated $15 million over the next six years, the release said.
The 200 positions include those that were eliminated in July 2011, and include a mix of layoffs and vacancy eliminations. About two-thirds of the new cuts will come from filled positions.
As part of the cuts, a number of senior-level positions have been eliminated, including vice-presidents, general managers and directors.
The CTA now has an average of 21 front-line staffers for every manager. It also has the smallest number of employees in its history, with 25 percent fewer employees than a decade ago, the release said.
About 70 percent of the CTA’s budget goes to labor costs, and 91 percent of the labor force is unionized. The CTA’s union contracts expire at the end of the year and are up for renegotiation.
“Amid a deep and continuing recession, these changes will make the CTA more efficient and still provide fair and reasonable policies for our employees,” CTA President Forrest Claypool said in the release.
“I also look forward to working with our labor leaders to find common sense, rational and fair solutions that reduce our labor costs while providing stable employment for their members,” Claypool said. “It is time for everyone to step up so we can put CTA on solid financial ground.”
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