Pierce Transit announced Wednesday it will take additional cost-cutting measures by eliminating management positions, consolidating programs, and addressing employee wages and benefits. At the July 2010 Pierce Transit Board of Commissioners meeting, the Board directed agency staff to identify further cost-cutting actions without eliminating current service levels until voters have their say in the February 2011 election whether to utilize the remaining 0.3 per cent sales tax authority.

Wednesday’s actions include an 11 per cent reduction in management positions. Since the beginning of the recession in 2007, Pierce Transit has now reduced management positions by 22 per cent. The elimination of positions and consolidation of programs will create savings and address duplication of roles. Some of the impacts to employee wages and benefits include no step or COLA wage increases in 2011 and increased employee contributions to medical and dental benefits for non-represented employees. Negotiations for a new contract with the largest group of represented employees will begin in 2011.

Pierce Transit is in its third year of addressing impacts of sharp declines in sales tax revenue. Other actions taken to date include delaying or eliminating capital projects; reducing service by nearly six percent; and increasing regular adult fares in 2009. Those actions combined with employee-identified operational efficiencies have saved over $72 million, according to Pierce Transit officials.

The total cost savings estimated by the elimination of management positions and impacts to the employee’s wages and benefits will be $1.2 million. This is above and beyond the $72 million in cuts already made.