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The Montreal region’s transit authority has cut $3 million in recurrent annual costs by streamlining its organizational structure.
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Overall, there will be a reduction of 30 permanent positions, which makes for a 15-per-cent reduction in the payroll.
As a result of the restructuring, the number of executives will be reduced to four from six, while the management committee will be reduced to six members from 10. The result is that there will be just one manager for every eight employees, whereas it was one for four beforehand.
This is the latest restructuring of transit bodies within the Montreal region. In its latest budget, announced in November, the STM included $16 million in recurrent costs for 2025, as part of an overall plan to cut $100 million annually by 2028.
The ARTM and its underling organizations have worked with the accounting firm Deloitte to identify $180 million in recurrent cuts they could make to their annual budgets. Deloitte submitted several recommendations to the province that would result in $346 million in recurrent annual savings.
The audit was ordered by Transportation Minister Geneviève Guilbault after the Montreal Metropolitan Community asked for more than $400 million to make up for a structural deficit in the budgets for transit corporations. Given an absence of funding from the province, the MMC has tripled the portion of car registration fees that are dedicated to public transit. As a result, a basic car registration will cost $150 next year, up from $59.
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