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World Series, finances loom over SEPTA-TWU talks
(The following story by Paul Nussbaum appeared on the Philadelphia Inquirer website on October 30, 2009.)
PHILADELPHIA — Both SEPTA and its largest union have strong hands to play as the threat of a transit strike looms this weekend.
The union can inflict maximum pain, calling a strike just as the World Series and the national spotlight arrive in Philadelphia.
SEPTA, meanwhile, can claim real financial distress as its costs rise, its ridership declines from recent record highs, and anticipated state subsidies are threatened.
In the middle, as usual, is the riding public.
Those who depend on SEPTA buses, subways, and trolleys to get to work or school - never mind sporting events - can do little but watch the labor struggle from the sidelines.
The union said yesterday that its deadline for going on strike was 12:01 a.m. Sunday, but a strike could be called beforehand.
Gov. Rendell, who was instrumental in breaking an impasse to settle the last SEPTA strike in 2005, "would, if asked, try to be helpful," spokesman Gary Tuma said yesterday. Rendell will be in Philadelphia for the World Series.
U.S. Rep. Bob Brady (D., Pa.), a frequent mediator in local labor disputes and an architect of the 2005 SEPTA settlement, said "it's too soon" for him to get involved.
"As long as they're talking, they're fine," he said.
Mayor Nutter said there was "no acceptable reason there should be a strike." He urged SEPTA and the union to "stay at the negotiating table and figure this out."
Game 3 of the World Series is scheduled for tomorrow night in Philadelphia, as are Game 4 the next night and Game 5 Monday night.
Nutter said a possible SEPTA strike during the Series was just "one more additional component" to a hectic weekend on the national stage for Philadelphia. There will also be a Flyers game tomorrow afternoon, a Pearl Jam concert tomorrow night as the Spectrum finale, and an Eagles game Sunday afternoon.
A transit strike would affect not only sports fans and commuters, Nutter said. "I'm also concerned about people being able to get to their doctor and hospital," he said.
Bargaining continued yesterday at the Holiday Inn in Old City, with both SEPTA and Transport Workers Union Local 234 led by first-time chief negotiators, SEPTA chief labor officer Fran Keating and TWU president Willie Brown.
The sides yesterday discussed for the first time the heart of the dispute: wages, benefits, and pensions.
"We're getting there . . . slowly," TWU spokesman Robert Wolper said.
The union, which represents about 5,100 bus drivers, subway and trolley operators, and mechanics, has been without a contract since early spring.
The World Series offers the union unanticipated leverage. SEPTA and the city would dearly like to avoid the spectacle of milling crowds trapped in South Philadelphia after a game.
But SEPTA also has leverage: a worsening financial condition.
Passenger revenue is down about 5 percent from a year ago. Operating expenses were about $5.5 million higher through August than in the same period in 2008.
And some anticipated state subsidies for SEPTA may end in June if the state continues to be denied federal permission to impose tolls on I-80.
Although SEPTA's budget this year includes a 3.5 percent increase for labor costs, the transit agency said none of that money was earmarked for new raises. It is needed for previously contracted wage increases, 93 additional employees, and the labor costs of 65 new customer-service initiatives, chief financial officer Rich Burnfield said.
According to TWU officials, SEPTA management has proposed no wage increase for the first two years of a four-year contract and a 2 percent increase in each of the final two years. It also wants to increase worker contributions to health coverage from 1 percent to 4 percent and freeze the level of pension benefits.
The union wants a 4 percent raise each year and health contributions to remain 1 percent. It is also seeking an increase in pension contributions from $75 to $100 for every year of service.
The TWU also is seeking changes in subcontracting and training provisions to allow members to do maintenance and repair work on buses and trolleys now done by outside contractors.
SEPTA bus, subway, and trolley operators earn from $14.54 to $24.24 an hour, reaching the top rate after four years. Mechanics earn $14.40 to $27.59 an hour.
Friday, October 30, 2009
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