Office of the Chief Executive9/29/12 11:08 AM
Bus Service Line Cleaning
Yesterday, our Commission met and after a lengthy debate, voted to approve a report recommending that the TTC contract out service line cleaning, starting with two bus garages. Over a period of time, and through attrition, all eight garages, including Wheel-Trans, will see a third party performing service line work for an annual savings of just over $4 million.
The report to the Commission was very clear: no TTC employee will be laid off as a result of this decision. The savings will be achieved through attrition.
The TTC, like the rest of the City, faces increasing pressure to reduce costs while, at the same time, maintaining service levels to the public. Last year, the TTC eliminated more than 200 non-unionized positions as part of a cost-savings measure, and will continue to look for efficiencies across the company, management included.
Starting in February this year, we worked closely with Amalgamated Transit Union Local 113 to find an in-house solution that would see a reduction in costs for the service line work. In the end, however, we were unable to reach an agreement. The TTC followed, to the letter, the language in the contract it has with the ATU. We worked in good faith to find in-house savings.
The TTC’s core service is to provide safe, reliable public transit to the people of Toronto. Ridership continues to grow and that means more service on the street. In 2013, we estimate 528 million trips will be taken on the TTC. That’s phenomenal growth. But to meet that demand, and to balance our budget, savings need to be found inside the organization. Increased ridership, and the service required to match that demand, costs money.
Debates will continue about fare increases and subsidy levels – two key funding sources. We can be sure of two things: service must grow with ridership, and the TTC must continue to find savings inside the organization to pay for increased service.
Again, I want to stress that no one will lose their job as a result of yesterday’s decision. More information will be shared as details about locations and dates are firmed up. I want to thank each of you for your continued professionalism and commitment to providing our customers with a transit system that makes Toronto proud.
Chief Executive Officer
September 28, 2012
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