TORONTO TRANSIT COMMISSION

Transcription

1 Form Revised: July 2007 TORONTO TRANSIT COMMISSION TO FROM Commissioners Gary Webster MEETING DATE December 6, 2007 SUBJECT Staff Response to Commission Inquiry Budget Matters At its meeting of September 12, 2007 during its consideration of the Commission report entitled TTC Response to City Budget Crisis, the Commission directed staff to report back on the following: 1. TTC worker salaries compared to public and private sector like jobs; and 2. Independent audits done in the last five years on TTC performance and efficiency. This report responds to these requests. TTC Worker Salaries In response to the Commission s inquiry, staff conducted a salary survey inviting a number of public and private sector employers to participate. Although the private sector employers declined to participate citing staff workload issues, some salary information has been obtained from annual reports and the 2006 Public Sector Salary Disclosure Act report, which lists employees who were paid over $100,000. Appendix A lists a cross-section of TTC positions and compares the maximum wage rates paid to a number of public and private sector employees. Please note that the figures listed for senior CP Rail and Ontario Power Generation positions are total salaries or cash paid in In addition, Appendix B provides a summary of Operator and Mechanic hourly wage rates, along with future increases, for a number of transit authorities. Overall, the report shows that TTC wage rates have been appropriately established within its comparative marketplace. Independent Audits Appendix C provides a listing of independent audits/reviews conducted by third parties since the amalgamation of the City of Toronto. The results of these audits/reviews document the TTC s strong performance and high measure of efficiency.

2 - 2 - In addition, the TTC has received a long list of awards honouring it for its achievements in a number of various activities. Some of the more recent examples include: the 2007 APTA Bus Safety Achievement Award for positive safety records and dedication to improving safety; the 2007 National Quality Institute of Canada Gold Award for Excellence in recognition of significant and sustained improvements made by the Information Technology Services department; the 2006 Toronto Construction Association Best of the Best Award for Project Achievement for work in connection with the Four Seasons Centre for the Performing Arts project; the 2006 Construction Specifications Canada Quality Documents Competition Award for the Mount Dennis Bus Garage project; the International Standards Organization Quality Management Standard, ISO 9001:2000 for the quality management of businesses; the Top 100 Employers in Canada list for the years 2001 to 2005; the 2004 Association of Black Law Enforcement Spirit Award in recognition of the Commission s demonstrated commitment to a diverse workforce; the 2003 Skills for Change Business Community Partnership Award for building and retaining business partnerships with the non-profit sector; the 2003 Construction Management Project Achievement Awards: International Project of the Year - Rapid Transit Expansion Program, Sheppard Subway Delcan- Hatch Joint Venture; and, the University of Waterloo Top 50 Co-op Employers list. Chief General Manager Attachments

3 TTC Job Comparator Survey for 2007 APPENDIX A Job Title OPG* CP Rail** City of Toronto CGM/CEO $1.48 Million $675,000, plus $826,916 in bonuses, eligible to receive equity options Sr. GM Level Chief Financial Officer Chief Info Officer Section Head, Engineering Superintendent Network Services $225,888 to $315,934 Directors, Operations and Maintenance $284,713 VP Controller $581,603 Sr. VP&CFO $280,000 plus $192,074 in bonuses, eligible to receive equity options $400,000 plus $50,000 in bonuses, eligible to receive equity options Toronto Police Coast Mountain TTC Calgary Transit $320,393 $277,642 $270,000 $268,431 $231,995 $246,301 No Match $180,000 $236,564 $177,486 $184,985 $143,671 No Match $161,853 $135,990 $352,931 N/A $203,476 $143,671 No Match $161,853 $177,486 $151,347 Manager, Eng $103,995 Section Manager N/A $107,708 No Match $111,461 $105,563 $147,511 N/A N/A $107,708 $122,741 $111,461 $105,563 $114,351 Design Engineer $86,377 No Match No Match $81,682 $94,986 Front Line Supervisor N/A N/A No Match No Match $83,597 $74,755 $80,335 Transit Planner N/A N/A $74,729 No Match $69,744 $74,147 $70,106 Garage Foreperson N/A N/A Replacing with Lead Hands $70,574 $83,597 $84,739 $80,335 Carpenter $28.00/hr $24.98/hr $30.50/hr No Match $31.95/hr $30.65/h r Millwright $30.49/hr (Several earned over $100K) $25.93/hr $31.85/hr No Match $31.95/hr $30.65/h r Janitor $20.92/hr $19.03/hr $22.07/hr No Match $23.13/hr $22.94/h r $28.77/hr $31.89/hr Contracted *from Disclosure for 2006 under the Public Sector Salary Disclosure Act, 1996 Hydro One and Ontario Power Generation **from Canadian Pacific Railway Annual Meeting of Shareholders & Management Proxy Circular dated May 11, 2007

4 APPENDIX B Transit Authority Effective Date Operator Mechanic TTC April 1, Brampton Transit July 1, 2007 December 31, 2007 July 1, 2008 December 31, 2008 July 1, 2009 December 31, 2009 July 1, 2010 December 31, 2010 Calgary Transit July 1, 2006 June 25, 2007 June 23, 2008 Coast Mountain April 1, 2007 April 1, 2008 April 1, 2009 April 1, GO Transit No change, still in negotiations June 3, London Transit July 1, 2006 July 1, 2007 July 1, Metro Transit (Halifax) No change, still in negotiations September 1, Mississauga Transit October 1, 2005 October 1, 2006 October 1, OC Transpo April 1, 2005 April 1, 2006 April 1,

5 APPENDIX C Page 1 of 2 SUMMARY OF INDEPENDENT THIRD PARTY AUDITS/REVIEWS DATE DESCRIPTION PERFORMED BY RESULTS September 1997 June 2000 February 2003 Organization of the TTC under the amalgamated City of Toronto Review of Legal & Claims Department Operation Report on TTC Key Performance Measures February 2004 Market Conduct Audit Statutory Accident Benefits Schedule Claims Richard M. Soberman Cameron & Associates Insurance Consultants Limited IBI Group Financial Services Commission of Ontario September 2004 Rail Safety Audit American Public Transportation Association Despite difficult economic times and major shifts in demography that affect transit ridership, the present day TTC has managed to maintain performance and effective operation that is the envy of all other transit properties in Canada and the US. Compared to similar size systems, the TTC has also achieved a level of fare and physical integration throughout the Metropolitan area that has yet to be achieved almost anywhere in the world. The TTC Legal/Claims Department fulfills its mandate to provide quality legal and claims services to protect the TTC from third party claimants and to recover damages sustained to TTC property by responsible third parties. - TTC is delivering transit services efficiently and effectively and is performing better than most of its peers in Canada and the US - overall administrative costs were lower than most of its peers in Canada and the US. As a result of the review and the fact that the non-compliance ratio has been well below 10% for two consecutive Market Conduct Audits, an inspection of your 2003 audit working papers will not be required. APTA commends the TTC management staff for its commitment and openness to further improving upon its safety program. The TTC has demonstrated through the proactive application of its System Safety Program Plan that the safety of its customers and employees is their first priority. The TTC supports this ongoing commitment through development and implementation of structured safety and security programs.

6 APPENDIX C Page 2 of 2 DATE DESCRIPTION PERFORMED BY RESULTS March 2005 July 2005 February 2006 July 2006 September 2006 October 2006 Work Flow Review of Accident Benefits Claims Team Accounts Payable Recovery Review MTO Inspection of Recognized Authority Ontario Retail Sales Tax Audit Annual Examination of TTC Insurance Company Employer Health Tax Audit Cameron & Associates Insurance Consultants Limited Deloitte & Touche Ministry of Transportation of Ontario Ontario Ministry of Finance Financial Services Commission of Ontario Ontario Ministry of Finance Based on interviews with staff, comparative studies within the industry and evaluation of the data provided by the TTC the current workload faced by the employees, both field and inside adjusters, is not manageable and far exceeds the comparative expectations of the industry. A review of 4 years of payment activity (280,000 transactions totalling about $3 billion) found potential recoveries on 8 items amounting to about $5K. - the accounts payable area is well managed and controlled and we observed no weaknesses in your controls As a result of this regular annual compliance audit to ensure that TTC is in compliance with the Driver Certification Program under which it holds a Recognized Authority status to conduct training and testing for driver s licence upgrades and renewals, all files (including training logs and original tests) were found to be properly documented and training and testing was found to be carried out as filed and approved. A review of almost 4 years of activity resulted in a negligible assessment of $20K. We are pleased to report that there were no significant issues arising from our recent review that need to be brought to your attention. A review of 4 years of activity found no audit adjustments were required.