The Port Authority of New York and New Jersey voted Thursday to cut compensation and benefits for non-union employees, saving an estimated $41 million over the next 18 months.
After an audit from Navigant Consulting Inc., which called the Port Authority “dysfunctional” and urged a top-to-bottom overhaul of its management structure, the agency has been under pressure to make changes.
“These changes are painful and will represent pay cuts for many employees,” said executive director Patrick Foye.
Changes include an employee health care contribution system, a revised vacation schedule, cuts in certain compensation programs, and the elimination of free rides for non-work travel on Port Authority Trans-Hudson, or PATH, trains.
The board also approved a freedom of information code to streamline the procedure for requesting documents to increase transparency.
Board vice chairman Scott Rechler said that the days of doing business as usual are over.
“I think the board is fully committed to ensure the Port Authority is the best-in-class agency, with the best-in-class practices and transparency and accountability,” he said.
Moody’s Investors Service rates the authority’s bonds Aa2 with a negative outlook. Standard & Poor’s and Fitch Ratings each assign AA-minus ratings and stable outlooks.
