=Views on contracted labor=
Three general perceptions about how contracted labor reduces operating costs dominate contemporary views. First, contracting labor capitalizes on any difference in the cost of non-union labor in the private sector. Typically, non-union labor is believed to be less costly than unionized labor. Second, contracting with the private sector introduces competition into the labor market, creating an incentive for labor unions to reduce wages in their contracts with the public sector. Third, transit agencies contract out inefficient service in order to maintain efficient operations under their direct control. <ref
name="Taylor et al. 2008"> Taylor, Brian, Karen Frick and Martin Wachs (2008), "Contracting for Public Transit Services in the US" , Privatisation and Regulation of Urban Transit Systems, Transport Research Centre Round Table 141: 47-62.</ref>
This may include utilizing more flexible non-union labor such as in split shifts. Split shifts are shifts in which a worker logs two four-hour shifts in the same day rather than a continuous shift of eight hours or more. This model fits well with peak hour travel in which operators are needed in the morning and afternoon but not necessarily in the middle of the day. Split shifts avoid overtime pay.