In October 2019, New York Metropolitan Transportation Authority Inspector General Ms. Carolyn Pokorny issued a devastating report dealing with excessive overtime and lack of proper time keeping for agency employees. One year later, many of the promised reforms have yet to be fully implemented, despite previous commitments and promises by MTA and Long Island Rail Road management. Some delays are legitimate due the unexpected impacts of COVID-19. There is a difference between overtime necessary due to malfunctioning equipment, accidents or adverse weather conditions when attempting to restore service versus others.
In 2016, New York Gov. Andrew Cuomo insisted that the MTA Office of Capital Construction, with the support of New York City Transit, complete the $4.5 billion Second Avenue Subway Phase 2 by the end of the year. He wanted to be able to host a planned ribbon cutting ceremony on January 1, 2017. After the event, it was shocking to learn that both contractors and NYC Transit paid employees millions in overtime for acceleration of work to meet his demands. (Source: New York Times: The Most Expensive Mile of Subway Track on Earth -- December 28, 2017). Even today, there is still significant overtime abuse and out of control pensions. These cost the MTA up to $1 billion annually. It doesn't help the NY MTA make a good case for Washington to deliver a second $12 billion COVID-19 bailout when it didn't efficiently manage its own financial resources. Every dollar counts, be it generated by riders paying at the farebox, city, state or federal assistance paid for by taxpayers dollars.
Long Island Rail Road (LIRR) employee overtime and pension abuse has been going on for years. It has been repeatedly documented internally by the MTA, Office of MTA Inspector General, New York State Comptroller, NYC Citizens Budget Commission, New York Empire Center for Public Policy audits and reports along with numerous newspaper stories. Gov. Cuomo and his appointed MTA Chairman Patrick Foye, MTA Finance Committee Chairperson Larry Schwartz and other MTA Board members one year ago expressed outrage at the time that this was going on. They reminded me of Captain Renault from "Casablanca" who said "I'm shocked...shocked to find that gambling is going on" while at the same time collecting his winnings. Where is the outrage one year later when these issues still have not been fully resolved?
The worst keep secret in the transit industry is that MTA union leadership has out negotiated management at contract renewal time for decades. This is especially true when it comes to work rules and assignments, medical insurance contributions and pensions.
It is evident one year later that MTA and LIRR have not fully implemented an up-to-date payroll system to flag such abuses. Too much recording of time and attendance still relies on a honor system. Installation of biometric time clocks have not been fully connected into the MTA Payroll System. There are still some supervisors who periodically sign off on overtime work hour abuses by employees and are not held accountable by their own supervisors. The same is true for those who manage agency budgets, along with MTA board members, MTA senior management team, agency presidents and the MTA Chairman. Private sector business would have an up-to-date time, attendance and payroll system. They would insist on documented justification for overtime pay to employees..
The MTA has consistently failed to successfully negotiate future union contracts to include more flexible work assignments. Salary increases should match the consumer price index. Employees need to increase contributions toward medical insurance and retirement pensions just as other government, private sector employees and taxpayers do. Future pensions must be calculated based on the final year's base salary and not inflated by overtime. Allow employees to remain part time while collecting a portion of their pension. This practice is becoming more and more common with many federal agencies. This affords experienced employees time to train replacements and be available during emergencies. The option to contract out more work to the private sector or hiring part time employees must be more readily available as appropriate without sacrificing the safety and system reliability that riders count on. Perhaps allow unions to bid on projects like the private sector? Offer union employees bonuses, like outside vendors, when completing projects ahead of schedule or under budget. Share these cost savings with union employees.
In 2019, New York State Assemblymember Michael Fitzpatrick submitted legislation that would prohibit overtime payments from being factored into a retiree’s pension calculations. Why didn't Gov.Cuomo, State Comptroller Tom DiNapoli, State Senate Majority Leader Andrea Steward Cousins, State Assembly Speaker Carl Heastie and most of their colleagues not endorse, pass this legislation and sign it into law? If implemented, it could save the MTA and LIRR up to $1 billion a year. You could also use the federal employee civil service model. Federal employee civil service retirement pension calculations are based upon the average past three years salary prior to retirement. It doesn't include overtime. Too many elected officials such as Gov. Cuomo, NYC Mayor Bill de Blasio and others depend upon transportation union endorsements, campaign contributions, phone banks and volunteers never seem to have the courage to openly support MTA management in instituting these reforms during contract renewal negotiations against their union benefactors. Riders don't have the stomach to put up with potential work slow downs, service disruptions, employee sick outs and potential strikes by unions who are not going to give up what they won at the bargaining table. Without these changes, it will continue to be the status quo. As a result, everyone including MTA employees, riders, taxpayers and the general public will continue to suffer. We are all in this together. Everyone needs to have skin in the game.
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Larry Penner is a transportation advocate, historian and writer who previously worked for the Federal Transit Administration Region 2 New York Office. This included the development, review, approval and oversight for billions in capital projects and programs for the MTA, NYC Transit, Long Island Rail Road, Metro-North Railroad, MTA Bus, NYC DOT, NJ Transit, along with 30 other transit agencies in New York and New Jersey.
