NJ Transit Aims to Cut Soaring Overtime Costs in 2024

NJ Transit spent more than $237 million on overtime in 2024, prompting leadership to launch a focused effort to reduce excess labor costs and improve operational efficiency. This is reported by the railway transport news portal Railway Supply.

CEO Kris Kolluri has set a 4% overtime reduction target for 2025, aiming to save approximately $9.48 million. This move supports NJ Transit’s broader goal of cutting $58 million from its $3.2 billion operating budget by fiscal 2026.

Don’t miss…Alstom to Build Railway Manufacturing Hub in Egypt

He emphasized a hands-on approach, pledging to work directly with department heads to identify where cuts are possible. “I’m reviewing the books with them,” he said. “We’ll pinpoint issues together and take action.”

NJ Transit Faces Rising Payroll Pressure

Payroll records show 88 of NJ Transit’s nearly 14,000 employees earned more than $100,000 in overtime last year. This highlights a troubling trend that risks long-term financial strain if not addressed quickly.

For comparison, the New York Metropolitan Transportation Authority paid $1.37 billion in overtime in 2023, with 724 employees exceeding $100,000 from extra hours. Though smaller, NJ Transit’s rising costs reflect similar budgetary risks.

NJ Transit Plans Strategic Operational Reforms

So far, the agency hasn’t revealed whether overtime cuts will involve workforce restructuring or schedule adjustments. However, leadership is expected to announce updates in the coming months as plans evolve.

The goal is to achieve cost savings without compromising service. Improvements in workforce planning, scheduling, and administrative oversight will likely play a major role in cutting down unnecessary overtime spending.

As financial pressure builds on transit agencies nationwide, NJ Transit’s cost-control efforts may become a model for managing overtime spending in a strained public sector.

Source: www.trains.com

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed: