Mayor Pugh Announces Savings of Over $950,000 from City Gain Sharing Plan

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Bernard C. "Jack" Young
Baltimore City
250 City Hall - Baltimore Maryland 21202
(410) 396-3835 - Fax: (410) 576-9425

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James E. Bentley II
(443) 257-9794

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BALTIMORE, MD.  — In what promises to be a model for achieving cost efficiencies in the utilization of City assets and services, Mayor Catherine E. Pugh today announced that the first phase of the City’s Gain Sharing Plan resulted in a cost savings of over $950,000.00, approximately $450,000 of which will be shared with participating employees who were incentivized to achieve cost savings and operational efficiencies. The pilot program was implemented last year by the Department of General Services’ Fleet Management Division in collaboration with its Labor Organization Partners (AFSCME Local 44, CUB and MAPS) and ran from July to December 2018.  The Fleet Management Division is responsible for the maintenance and management of the City’s vehicle fleet which includes everything from changing the oil of all City fire trucks and other utility vehicles, to repairing snowplows, putting new tires on garbage trucks and also outfitting police vehicles.

“It’s incumbent on City agency heads and all employees to be extremely conscientious with public funds that have been allocated for the performance of services on behalf of the residents of Baltimore,” said Mayor Catherine E. Pugh.  “My Administration is committed to an internal culture that pursues innovation in order to drive efficiencies, reduce costs and increase positive results for residents. This program is just such an example and is one that we are requiring other department leaders to consider in maximizing cost efficiencies among their employees. This is not only smart government – it is responsible government.”

On average, Department of General Services (DGS) Fleet technicians completed 40 more work orders each month utilizing internal staff, rather than outside contractors.  Roughly two-thirds of the gain sharing savings ($636,354.61) came from Fleet employees completing work that had previously been sent to outside vendors. In addition, fleet employees worked more than 1,300 additional direct labor hours, without a significant change in the number of technicians, indicating that employees are being more efficient.  Moreover, leave time during the pilot program period fell by 6%. The 227 participating employees will each receive approximately $2,000.00 over and above their regular pay.

“Together, we are working to make the City’s Fleet more effective and efficient, and as we collaborate, the City and the employees are sharing the benefits,” said Department of General Services Director Steve Sharkey. “It is because of the hard work and commitment of the frontline staff to improve service and reduce cost, that the City has achieved these significant savings on behalf of Baltimore residents.”

The Gain Sharing Program is being continued in 2019 and the results of the next phase will be communicated in July.


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