MTA acting chairman Lieber wants to 'wind down' agency's cost-cutting plan

The new leader of the MTA has vowed to "put an end" to a consolidation effort begun at the transit agency two years ago, acknowledging the cost-cutting effort resulted in the loss of many front-line workers that now must be replaced.

Janno Lieber, acting chairman and chief executive of the Metropolitan Transportation Authority, expressed his "reservations" about the consolidation plan during a state Senate hearing on Wednesday in Manhattan that focused on the MTA’s finances.

The "MTA Transformation," launched in 2019 and aimed at consolidating various departments across the MTA, had a goal of cutting up to 2,700 jobs and saving as much as $530 million annually. But a report released Tuesday by State Comptroller Thomas DiNapoli criticized the effort for largely cutting labor positions, rather than management and administrative ones.

Of the 2,725 positions eliminated, 84% were in maintenance and operations, according to the comptroller's report. The job reductions came through retirements and resignations.

Lieber said he agreed with lawmakers, who raised concerns about the toll the consolidation took on hourly workers. He said that to flesh out its depleted workforce, the agency recently resorted to speeding up training, offering employees incentives to put off vacations, and luring back retirees.

Lieber vowed to "wind down or, frankly, put an end" to the consolidation effort, which initially was expected to last up to three years.

"Whether it was a good idea when it was passed into law a couple years ago, I think everybody agrees now that the moment of disruption ought to be put behind us right now," Lieber said. "I think we now have the moment when we have to stop that which has been a little bit divisive and figure out how do we get more out of our existing employees in these new, consolidated organizations."

Lieber foreshadowed his intent to discontinue the consolidation effort in a memo obtained by Newsday that was circulated to MTA managers earlier this month. In it, Lieber said "many of the milestones" sought in the plan already had been achieved, and that he expected the remaining work would be completed by October. The transformation team would then shift to working with newly consolidated departments.

Lieber said that some good did come out of the effort, including the creation of a streamlined MTA Capital Construction and Development department that has spearheaded major infrastructure projects, and an improved customer service operation.

Since being pushed by former Gov. Andrew M. Cuomo and passed into law in April of 2019, the creation of a dedicated MTA Management Transformation office drew heavy backlash from labor leaders, who said the initiative would only contribute to the agency’s bureaucracy. The MTA hired French Canadian executive Anthony McCord at an annual salary of $325,000 to lead the consolidation as its chief transformation officer.

Anthony Simon, who heads the LIRR’s largest union, called the hiring "a perfect example of waste."

"They obviously see it now and are trying to imply it served its purpose," said Simon, general chairman of the International Association of Sheet Metal, Air, Rail and Transportation Workers. "It only served one purpose and that was to give high-paying senior managers positions [that were] never necessary and a waste of the public money."

By Alfonso A. Castillo

alfonso.castillo@newsday.com@alfonsoreports

Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.