• Subscribe
  • Magazine
  • 40 Under 40
  • Supplier's Directory
  • Advertise
  • Contact Us
    1. Management

    STM confirms spending reductions in 2024 budget

    Feb. 2, 2024
    STM’s efforts to free up an additional C$36 million will include a C$25 million reduction in payroll for employees and managers whose positions aren’t directly related to STM service delivery, a C$9 million reduction in goods and services expenditures and a C$2 million adjustment to the special operating budget for certain projects.
    Related To: Societe de transport de Montreal (STM)

    The Société de transport de Montréal (STM) has made and implemented the spending reductions revealed to cover C$36 million (US$26.7 million) of the C$46 million (US$34.1 million) risk to be recovered in its 2024 operating budget.  

    As of 2024, the STM’s efforts to free up an additional C$36 million (US$26.7 million) will involve: 

    • A C$25 million (US$18.6 million) reduction in payroll for employees and managers whose positions aren’t directly related to STM service delivery, with more than 180 positions abolished (four percent of the STM’s total payroll). 
    • A C$9 million (US$6.7 million) reduction in goods and services expenditures (two percent of the total goods and services budget). 
    • A C$2 million (US$1.5 million) adjustment to the special operating budget for certain projects. 

    By reviewing its organizational structure, integrating its cost‑cutting plan into the organization’s long-term strategy, optimizing its service offering and taking additional risks, the STM had already secured savings of more than C$50 million (US$37.1) for its 2024 budget. With the additional C$36 million (US$26.7 million) in savings implemented, total payroll cuts in the 2024 budget stand at approximately five percent, or 230 positions. 

    “It’s always hard for an organization to make these kinds of decisions,” said STM CEO Marie-Claude Léonard. “It’s not something we do lightly but it was necessary to maintain our service offer and continue to be there for our customers, everywhere they need us. Despite the increasingly complex financial context, we’re more dedicated than ever to fulfilling our mission as an essential service for the entire community and a key player in the fight against climate change. We had to make some difficult decisions but for the STM to stay true to that mission, they needed to be made. I’d like to extend my sincere thanks to all of our employees experiencing these changes in our organization. Rest assured that we are taking all the necessary steps to support you as we move forward.” 

    Summary of the STM’s recent budget-cutting efforts  

    • 2022: C$27 million (US$20.1 million) 
    • 2023: C$52 million (US$38.7 million) 
    • 2024: C$86 million (US$63.8 million) 

    The STM is also committed to generating C$100 million (US$74.2 million) in recurring expenditure reductions during the next five years without impacting the level of service to customers. 

    “The STM is committed to achieving new savings on expenditures. Today’s announcement demonstrates how seriously we take that commitment and how determined we are to pursue concrete actions in that regard. We’re also committed to ensuring the efforts don’t impact our level of service. Of course, we won’t be able to keep making these kinds of budget cuts every year. The STM can’t solve the whole issue of how we fund public transit on its own. We need to be able to count on predictable sources of revenue over the long term so that we can better plan our service offering and our needs with regards to network modernization,” Léonard said.