84 Rochester, MN Bus Workers Losing Jobs As City Picks New Transit Company

ROCHESTER, MN — About 84 employees at a Rochester transit facility will lose their jobs at the end of August as the city switches bus contractors, according to a Worker Adjustment and Retraining Notification (WARN) notice filed with the state.

Transdev Services Inc. notified Minnesota's State Rapid Response Team that its contract with the City of Rochester will end on or about Aug. 31, 2026, according to the notice.

Permanent layoffs at the company's facility at 4300 E. River Road NE will begin that same day, the notice states.

The positions affected include Dispatcher Fixed I, Driver, Paratransit Dispatcher and Utility Worker, though the notice says the list is not exhaustive.

The layoffs stem from a contractor switch, not a reduction in service.

The buses themselves belong to the city; Transdev has only operated and maintained them under contract.

City officials are moving to award a new five-year, roughly $78 million agreement to Via Transit Twin Cities LLC, a firm that runs transit systems in more than 175 cities worldwide, according to KROC-AM News.

The new contract would take effect Sept. 1, overlapping with the final months of Transdev's agreement to help ease the handoff.

Via Transit's contract would also cover the buildout and eventual operation of Rochester's Link Bus Rapid Transit line, a dedicated-route system currently under construction downtown.

The transition follows a rocky stretch between Transdev and Amalgamated Transit Union Local 1005, which represents Rochester's bus drivers. The union authorized a potential strike earlier this year amid a contract dispute, and drivers staged a mass call-out that disrupted service in February.

The two sides reached a new labor agreement in May that runs through 2028, KMIT reported.

Transdev told the state that affected employees will be offered the opportunity to continue their employment with the incoming operator, according to the WARN notice. The employees are represented by a union, and bumping rights apply, the notice states.

Liz McLoone, a senior specialist with the State Rapid Response Team, is leading the state's assessment of the layoffs.