BART, Unions Begin Contract Negotiations as Agency Emerges from Deficit
Friday, April 05, 2013 - 03:01 PM
Rising ridership and sales tax revenues on San Francisco's BART system mean the agency is no longer operating at a deficit, which has triggered labor negotiations that could give union workers their first raise in four years.
BART contracts for its union workers – who make up almost 90 percent of BART’s over 3,000 employees– are set to expire on June 30th. And that has sent BART and union leaders to the negotiating table. Both sides are hoping to avoid the bitter and contentious fight that happened during the last contract negotiations in the summer of 2009.
But things were different in 2009. Ridership was declining, and the system was facing a $250 million deficit over the next four years. BART went into negotiations with the goal of cutting $100 million in labor costs through reductions in health care and pensions, and changing what they considered “wasteful” work rules, like unnecessary overtime. A last-minute deal that kept wages static, prevented a strike by the Amalgamated Transit Union Local 1555, or ATU – the union that represents the system’s approximately 900 station agents and train operators.
That deal did save BART the $100 million it wanted and laid out plans for four of the five unions and non-union employees to get a one percent raise if strict guidelines were met, including increased ridership and sales tax revenues. This week, BART announced the guidelines have been met, so most of their employees will be receiving their first raise in since 2009.
“With record ridership and an aging system, our employees are working hard to provide on-time, reliable service for our riders,” BART General Manager Grace Crunican said in a press release. “The bar was set high for our employees to receive this increase and the predefined standards were met.”
Since 2009, BART has increased its ridership – from 340,000 to over 390,000 in the latest monthly report. And it’s no longer operating on a deficit, but the system does have a $10 billion unfunded capital need for renovation and expansion projects.
“This year’s labor negotiations will be focused on bargaining a fair contract for our hard working employees as well as ensuring the long term financial health and sustainability of our system,” Crunican said.
BART says they’re looking at the same issues as last negotiation: employee health care, pensions, and work rules.
“We must pave the way for BART to continue to be the backbone of Bay Area transportation for decades to come,” Crunican said. “BART is looking to protect its future fiscal stability with measures to more effectively share the risks and costs associated with its employee benefits program.”
Antonette Bryant is the president of ATU Local 1555. She said calling last negotiation contentious was “a gross understatement.” But this time, she said, she wants to have the contract settled June 30th.
“We want them to pay a fair wage for our employees and increase safety and service for the BART patrons,” Bryant said. Meaning, they want a pay raise.
Bryant also said the one percent raise announced this week should not be considered as the transit workers’ only salary increase.
“I want to make it clear that this is not benevolent,” she said. “This is something they have to do. They owe us the money from the previous contract negotiations.”
As negotiations go on, both parties hope to have a deal by June 30th and to prevent the fighting that happened four years ago.