NJ Transit lays off 200 workers, cuts execs salaries
By Paul Nussbaum
INQUIRER STAFF WRITER
As NJ Transit prepares to raise fares and cut bus and train service, agency officials today said they also will lay off more than 200 workers and cut executives' salaries by 5 percent.
The layoffs of union and non-union workers will reduce the agency's workforce by about 2 percent.
The transit agency also will reduce its contributions to employees' 401-K plans by one-third and freeze spending.
The moves announced today will save about $30 million, officials said. NJ Transit faces a deficit of about $300 million by June, 2011.
Details on fare hikes and service cuts will be announced next week, and public hearings will be held in late March, officials said.
The budget-cutting at NJ Transit is part of a broader push by Gov. Christie to reduce state spending, as his new administration grapples with a budget deficit of $2.2 billion this fiscal year and as much as $11 billion in the fiscal year that begins July 1.
The five-percent cut in executive pay means the annual salary of new executive director James Weinstein will be reduced to $248,257.80 on July 1, down from the current $261,324.
Currently, NJ Transit contributes three percent of employees' salaries to their 401-K retirement plans. That will be reduced to two percent.
It was unclear how many of the job losses would come from union ranks. The agency has more than 11,000 workers, including nearly 10,000 union employees.
The agency has cut the non-union ranks by 240 jobs since 2007, said NJ Transit spokeswoman Penny Bassett Hackett. She said there were no reductions in union jobs in that time.
Democratic legislative leaders have criticized the planned fare increases and service cuts at NJ Transit as unfair because motorists are not being asked to pay more.
"A fare increase from Gov. Christie, after all, is no different from a tax increase," Assembly Transportation Committee chairman John Wisniewski (D-Middlesex) said recently. "This is actually a double-hit, because commuters will pay more for less service."