CTA to begin offering financial incentives to rail and bus personnel

The Chicago Transit Authority (CTA) will begin to offer financial incentives to attract and retain bus and rail personnel as part of the authority’s efforts to address workforce shortages.

“Every industry has faced the challenges of attracting new employees and retaining current ones, and it’s an issue that has especially impacted the transit industry,” said CTA President Dorval R. Carter, Jr. “In order for CTA to hire and retain the best employees, we have to do everything we can to make CTA an even more attractive employer.”

The CTA is introducing the following incentives for newly hired union employees in certain job titles:

• Hiring bonus—All new bus operators, bus mechanics and rail car repairers hired in 2022 and 2023 will receive a $1,000 hiring bonus. The bonus will appear on the employee’s first paycheck, and employees must remain with CTA for one year, or they would be required to pay back the bonus.
• Retention incentive—Eligible employees will receive a retention incentive payment after every six-month period worked through December 2023. The incentive is equal to three percent of their hourly rate for actual hours worked, up to a maximum of 1,250 hours per six-month period. The retention incentive will be paid to all eligible ATU-represented employees (except employees newly hired as bus mechanics and railcar repairers in 2022 and 2023) on the payroll at the time the payments are issued. Payments will be approximately $1,500 for operators and about $1,200 for other employees.
• Increased starting rate for bus and rail operators, mechanics and car repairers — Under the current system, bus mechanics and railcar repairers begin at 80 percent of the hourly rate and move up to 100 percent after two years. Now, through 2024, salaries will begin at 100 percent, which is between $39 and $40 per hour. Bus and rail operators will also see a jump, with starting hourly rates increasing to more than $28, up from $24. In 2023, as part of contractual wage increases, the starting rate will increase to just under $30. Through 2024, their time to reach 100 percent of the top rate will be shortened by 12 months, from 45 months to 33 months.

“Our employees are this agency’s most important assets,” Carter said. “They are the unsung heroes of the city, who are devoted every day to provide the service on which so many people rely.”

The CTA already offers competitive salaries and good benefits, including generous health insurance, paid time off and other benefits.

“These new incentives are an important recognition of the hard work and dedication our union members put forth each day to help keep the city of Chicago moving through every imaginable scenario – from inclement weather, to a pandemic and more,” said Keith Hill, president of ATU Local 241, and Eric Dixon, president of ATU Local 308, in a joint statement.

The new employee incentives carry a budget of around $80 million for two years. The incentives are the latest in a series of initiatives introduced in support of the Meeting the Moment: Transforming CTA’s Post-Pandemic Future Action Plan—a multifaceted investment plan to strengthen the rider experience through more consistent and reliable service, safe rides, clean facilities, modern amenities, dynamic customer engagement tools and a strong CTA workforce.

CTA’s new employee incentives are in line with recommendations made in a recent report by the American Public Transportation Association. The Transit Workforce Shortage Study notes financial incentives are among many strategies U.S. transit agencies can address unprecedented worker shortages.