Public transport: no money wasted, but $346 million in savings are possible

Société de transport de Laval buses are photographed at a terminus on Thursday, Oct. 21, 2021. (The Canadian Press/Ryan Remiorz)

The province's 10 public transport companies could eventually save a total of $346 million, but this will require a change in operating methods and probably some serious arm-wrestling between the companies and their unions.

However, the 515-page performance audit delivered on Thursday by the firm Raymond Chabot Grant Thornton found that these companies, as well as the Autorité régionale de transport métropolitain (ARTM), are well managed.

“We have not come to the conclusion that the transport companies are wasting taxpayers’ money,” said Nicolas Plante, principal author of the report, thereby putting the lid on the idea that these organizations sometimes spend recklessly.

Unsustainable deficit

In her presentation of the audit, Transport Minister Geneviève Guilbault pointed out that based on current projections, public transport companies in the Montreal region are projecting an accumulated deficit of $2.5 billion by 2028, a deficit she described as “unsustainable.”

“We can hardly do without it. We need that $346 million,” she said.

Many of the increases in operating costs are partly unavoidable, including items such as the price of fuel, which has soared over the five-year period studied. However, the largest transport companies manage to obtain price reductions due to the volume of their purchases, an advantage that the others could also benefit from by pooling their purchases.

Furthermore, both the audit and the minister pointed out that 64 per cent of transport companies' expenditure is on wages. Without putting a figure on the value of certain changes, the audit nevertheless identifies certain obstacles to the implementation of certain measures in the collective agreements.

Lack of flexibility

“Among the recommendations to be prioritized in the shorter or medium term that would be the most concrete and quickest to implement, there are some that are limited by collective agreement clauses that prevent us from having the necessary flexibility to take certain actions that would generate savings,” Guilbault said.

Frédéric Therrien, president of the bus drivers‘ and metro operators’ union at the Société de transport de Montréal (STM), was waiting for journalists after the audit presentation to denounce the fact that, in his opinion, “the cuts are still being made on the backs of the workers and on the backs of the customers,”

“I find it appalling that the CAQ government says that for them, it is important to have good, quality jobs, but every time there is a need to save money, it’s at the expense of workers,” Therrien said.

As for the required flexibility referred to in the audit, he responded that his union had always negotiated in good faith, but that “the minister pushes us to the limit by saying that we are not flexible.”

“But discussing this during negotiations will be our pleasure," he said, adding that negotiations with the STM have just begun as the collective agreement for his members expires on January 5.

His reaction, however, signals what can be expected across all transport companies in the province.

Too many unused vehicles

One of the most significant savings identified in the report, that could be achieved in the short term, would be addressing what is called “the reserve rate,” meaning the surplus number of vehicles that are either stored in anticipation of need or undergoing maintenance.

According to the audit, the optimal ratio is 20 per cent, but some transport companies, such as those in the Outaouais (61 per cent), Saguenay (44 per cent), the capital (43 per cent) and Montreal (41 per cent), far exceed this target, resulting in costs that could be reduced.

Guilbault also expressed willingness to review timelines for electrifying bus fleets "to reduce the pressure," as this represents a major expense for transit agencies—not only for vehicle purchases but also for building new garages for their maintenance.

Another approach aims to reduce service frequency on less busy routes at certain times and even introduce on-demand transit, a model growing in popularity but often involving outsourcing to private companies.

"Private providers can be beneficial," said Guilbault, while acknowledging that this, too, could lead to pushback from unions.

Notably, of the $346 million identified as potential savings, the audit details only $166 million, with the remaining $180 million identified by transit agencies themselves.

The breakdown of this amount "is confidential," officials said several times.

This report was first published in French by The Canadian Press Nov. 7, 2024.