Management laughing all the way to the bank

Currently the demand for mass transportation is growing at a record number. Based on that reality is also the consideration of the ease of substitution available to New Yorkers in their choice of mass transportation. On the other hand our employer has not enhanced the labor, capital and other inputs to use in providing mass transportation to New Yorkers.

Producing the product which is mass transportation requires the exorbitant management wage rate to be curtailed. The rise in the management wage rate raises the cost of production unnecessarily - it has a negative effect to blue collar employment for two reasons. 

First, our employer as a public authority is being perceived as wasting monies in unwarranted projects thus that translates in less production and a smaller demand for labor. Second, higher costs of management does not motivate to substitute capital and other inputs for management in the long run, leading further reduction in labor demand.

For example the easier it is for consumers to find a substitute good (such as an imported car) to replace the one whose price has gone up (such as a domestic car) or alternatively the easier it is for our employer to substitute capital for management the greater will be the reduction in employment where the wages of management are on the rise or increased. We do not agree with CEO Joseph Lhota point of view of not reducing the management waste. When will he implement his so called “Throughout my career in both the public and private sectors, I have initiated reforms that are performance-based and that cut costs, and I look forward to bringing this same approach to the MTA,”? Clearly he has failed in this case and the management are laughing all the way to the bank with their exorbitant six figure salaries.