integration

Manfred Rietsch, head of the Federal Signal Technology (FS Tech) group tells us that integration of the toll system companies - PIPS, Sirit, VESystems and idris - wasn't really an issue in the departure of CEO Bill Osborne. The Technology group he pointed out is the smallest of four Groups - $110m in an $800m company.

Talk in the industry is that the turbulence at Federal Signal is in large part a result of difficulty integrating the four major toll systems businesses. William Osborne a middle level executive at Ford before he was recruited as CEO of Federal Signal in September 2008 is said by people he spoke to in the toll industry to have admitted he was stumped on how to bring the four toll system businesses together effectively.

Turnpike pay scales and conditions often 50% higher than the state highway department are causing major problems in efforts to integrate the two into a new Massachusetts DOT. The incoming secretary and present Turnpike CEO Jeffrey Mullan said this week in the state legislature that reconciling the differences presented "significant challenges."