Metro - File #: 2020-0470

• File #: 2020-0470
• Type: Program
• Status: Passed
• File created: 7/9/2020
• In control: Board of Directors - Regular Board Meeting
• On agenda: 8/27/2020
• Final action: 8/27/2020
• Title: AUTHORIZE the Chief Executive Officer to implement a Voluntary Separation Incentive Program (VSIP) that offers an enhanced additional benefit that provides cash payments of up to $7,500, and an additional two years of retirement service credit, to eligible Non-Contract, AFSCME and Teamsters represented employees1 who voluntarily agree to separate or retire from Metro within a pre-designated retirement period. Metro Board approval is required in order to provide any additional or enhanced benefit to employees.
• Sponsors: Executive Management Committee
• Indexes: American Federation Of State County And Municipal Employees, Contracts, Coronavirus Disease 2019 (COVID-19), Employee benefits, Guidelines, International Brotherhood Of Teamsters, Non-contract, Payment, Pensions, Plan, Program, Ridership, Safety, Transfers

Date	Action By	Action	Result
8/27/2020	Board of Directors - Regular Board Meeting
8/20/2020	Executive Management Committee

Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
AUGUST 20, 2020

Subject
SUBJECT: VOLUNTARY SEPARATION INCENTIVE PROGRAM

Action
ACTION: APPROVE ADDITIONAL OPTIONAL BENEFIT FOR EMPLOYEES

Heading
RECOMMENDATION

Title
AUTHORIZE the Chief Executive Officer to implement a Voluntary Separation Incentive Program (VSIP) that offers an enhanced additional benefit that provides cash payments of up to $7,500, and an additional two years of retirement service credit, to eligible Non-Contract, AFSCME and Teamsters represented employees1 who voluntarily agree to separate or retire from Metro within a pre-designated retirement period. Metro Board approval is required in order to provide any additional or enhanced benefit to employees.

Issue
ISSUE

The COVID-19 pandemic has fundamentally disrupted the very fabric of our community. Health concerns, and mandated efforts to stop the spread of the disease including stay-at-home orders, nonessential business closures, and working from home, have led to a substantial decline in Metro's overall ridership and revenue. Current estimates project a $1.8 Billion-dollar loss in revenue, with a slow recovery of ridership levels for the next two fiscal years.

Background
BACKGROUND

Metro remains committed to the priorities of allocating resources to maintain ample supplies of personal protective equipment, the preservation of jobs, ensuring the safety of our riders, and improve operational efficiency while continuing to adjust our operations and service levels to reflect the on-street reality of less demand for public transit.

Metro's response to the pandemic to date includes a substantial reduction in both bus and rail service, the closure of Bus Division 10, the agency wide reduction of overtime costs, and a hiring freeze. Offering a voluntary separation incentive program will give Metro more flexibility to restructure operations, reduce personnel costs, open career pathways for emerging leaders, and better address diversity ...