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The 6m overtime bill in 2015 represented 15% of payroll, which is nearly double the 8% benchmark of average private nonfarm manufacturing overtime tracked by the US Bureau of Labor Statistics.In 2010 when the MTA’s total overtime bill was 0m, or 13% of payroll, the MTA vowed to crack down, however the overtime issues have only been exasperated.
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This organization is the Metropolitan Transport Authority (MTA), which loses on average more than $6 billion per year dating back to 2009.
If the MTA were a company in a functioning free market, it would have filed bankruptcy and restructured a decade ago.
The vast majority of these employees are bus operators, train conductors, station agents, maintenance personnel, and cleaners.
Analysis conducted on 2010 salaries of bus/rail operators and maintenance personnel shows that MTA salaries range from 18% to 60% higher than other US metro systems (i.e. Because the MTA Bus Company did not provide its overtime accounting, total overtime in 2015 is actually greater than 6m.
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New York City is the center of capitalism and financial markets, however, hiding underneath the towering skyscrapers is an organization that defies the free market forces by siphoning off increasing amounts of city and state taxpayer dollars.
This number is even more egregious when you consider that only a subset of roles is responsible for the vast majority of overtime due to union constraints and inflexible work rules that will be detailed in a later section.