Pennsylvania Turnpike to lay off 500 employees, make cashless tolling permanent
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The Pennsylvania Turnpike Commission this month will lay off about 500 employees — mostly toll collectors — as it switches permanently to a cashless system statewide.
That’s roughly a quarter of the commission’s total workforce.
The commission originally planned to make the switch to cashless late next year, promising no layoffs until 2022. However, because of the coronavirus pandemic, the commission stopped accepting cash in March — a move that was called a temporary measure.
Now officials say cash payments won’t be coming back. Tolls will be assessed electronically via E-ZPass or Toll By Plate.
“I deeply regret that we have reached this point, but the world has been irrevocably changed by the global pandemic,” commission CEO Mark P. Compton said in a statement.
Turnpike traffic is down almost 50% since last spring, and toll revenues dropped by more than $100 million for the fiscal year ending May 31.
The commission instituted a hiring freeze, slashed capital spending and offered a voluntary retirement program to cut costs, but these measures were not enough to make up for the shortfall, Compton said.
The employees who will be laid off were notified Tuesday morning. The layoffs will begin June 18.
Employees will retain some of their health benefits for up to two years, according to the commission.
Compton said health considerations factored into the decision as well as fiscal concerns.
If a toll collector tests positive for the virus, it requires shutting down an entire interchange, Compton said.
“In mid-March, we made the decision to stop accepting cash in the lanes to protect employees and customers from covid-19,” Compton said. “It was fully intended to be a temporary condition. However, with (all-electronic tolling) already our goal for the future, the decision to accelerate makes sense when faced with this extended pandemic.”
The commission has been considering cashless tolling since 2011, and implemented pilot programs at several sites, including the Amos K. Hutchinson Bypass in Westmoreland County last year.
Correction: An earlier version of this story inaccurately stated the proportion of the total Turnpike Commission workforce represented by the 500 employees to be laid off.