AC Transit Urges Bus Drivers to Remain on the Job While New Work Rules Take Effect
Press Releases
07/15/2010
The Board of Directors and management of AC Transit today encouraged its 1,750 unionized employees to stay on the job and continue to provide vital bus service to the public as the transit district is set to begin implementing a new contract next week that is being challenged in court by union leaders.
“There are more than 230,000 daily riders at AC Transit-the young, seniors, students, disabled, and working people-who all depend upon our bus system as their sole means of transportation and we must be there for them,” said Interim General Manager Mary King. “Our riders, the taxpayers, our employees, and our economy depend upon AC Transit running.”
AC Transit does not expect the union to strike while the court challenge is pending. However, if the court ruling is not in the union’s favor, bus service could be disrupted as early as next week. King urged riders and the public to view the District’s webpage www.actransit.org for updates on transit information.
AC Transit adopted a contract on June 30 without the approval of the Amalgamated Transit Workers Union (ATU) Local 192 because the parties had reached impasse. The transit district requested and received assistance from a California State mediator in the last four weeks of negotiation, but the mediator was unable to find a resolution.
The ATU is challenging the adopted contract that goes into effect July 18. Superior Court Judge Frank Roesch will hear the case Friday, July 16, in Department 31, Law and Motion Court, U.S. Post Office Building, 201 13th St. (between Alice and Jackson streets), Oakland.
The ATU is asking the court to order “interest arbitration” to resolve this contract dispute. The District has not agreed to this procedure. One of the primary reasons is that California courts have determined that interest arbitration allows a non-elected third party to make key financial decisions that are supposed to be made only by the elected board of directors.
It is unknown if the judge will rule on Friday or at a later date. No matter the outcome, the losing side is likely to appeal. It is possible that the outcome will not be determined for six months or longer, the transit district estimated.
AC Transit officials are also concerned that if the union leadership prevails in forcing the dispute to interest arbitration that this will delay the implementation of cost cutting measures for at least six to 12 months–at a cost of more than $1.2 million a month in lost savings.
“The irony is that if the union wins this case, it will cost their members jobs,” King said. “The District would face increased and ongoing costs that we can’t afford and will lead to more cuts in service and the loss of union jobs.”
The District’s adopted contract preserves basic union wages and healthcare benefits while reducing costs by $15.7 million through work rule changes, co-pay policies for medical care and employee health insurance, and a two-tier pension plan.
Overall, the District is seeking to reduce labor cost by 8 to 9 percent to help close a projected funding gap of $56 million for the two-year period ending on June 30, 2011. So far, AC Transit riders, general and administrative staff, and the Board of Directors have made significant financial concessions, including:
• Local riders are paying more due to the 25 cents per trip fare increase and $10 increase in the price of a monthly pass. Transbay riders are paying more due to the 50 cents per trip fare increase and $16.50 increase in the price of a monthly pass. Youth, senior and disabled riders are paying more due to the 15 cents per trip local fare increase and 30 cents Transbay increase.
• Riders also had their bus service reduced in March by 7.8% or $10.3 million worth of service hours; they are facing a second round of service cuts in August that will further reduce service by 7.2% or $11.4 million in service hours.
• More than 70 general and administrative staff positions have been eliminated.
• Total general and administrative overhead reductions–including the elimination of three executive management staff, district vehicles, and management leave benefits–have reduced expenses by $9.2 million.
• The Board of Directors has cut its salary by 5%, cut travel by 50%, and eliminated a special travel account for transit advocacy.
Even though significant spending reductions have been achieved with these cuts, it is still not enough to balance the budget, given that labor costs account for about 75% of the agency’s operating budget. Without contributions from the ATU members, the budget gap cannot be closed.
ATU members have the legal right to strike. AC Transit has advised all of its employees of the potential for a strike in the coming days or weeks and is poised to modify the District’s operations should a strike occur.