AC Transit Board of Directors’ Labor Decisions Result in over $7 million savings

Press Releases
07/29/2011

Collective Bargaining Agreements Reached with AFSCME and IBEW

The AC Transit Board of Directors made decisions regarding three separate employee groups which will result in significant savings of almost $7.3 million through early 2014. The three groups of employees affected by these actions include the International Brotherhood of Electrical Workers (IBEW), Local 1245; the American Federation of State, County, and Municipal Employees (AFSCME), Local 3916; and Unrepresented Employees. All three of these employee groups will contribute 10% of the cost of their monthly medical and dental insurance premiums and receive one less paid holiday.

AFSCME, Local 3916, represents approximately 200 managers, professionals, supervisors, paraprofessionals and administrative staff. Their Collective Bargaining Agreement will result in wage reductions of 5% through June 30, 2013 for a total savings to the District in the amount of $5,785,920 through March of 2014.

IBEW, Local 1245, represents approximately 25 Electricians, Electronic Technicians, and Heating, Ventilation, and Air Conditioning specialists. The IBEW Collective Bargaining Agreement implements work schedule changes. Base wages will remain the same. The result of this agreement will be a total savings to the District of $667,800 through March of 2014.

Unrepresented employee wages will be cut by 3%, which in conjunction with a cancellation of a planned 2% increase last year will result in an equal 5% decrease in wages to that of AFSCME.

Agreement with the Amalgamated Transit Union, Local 192 was reached last year.

“These agreements provide much needed labor cost stability over the next two years for AC Transit,” said Interim General Manager Mary King. “These savings along with the approval of a balanced biennial budget through June 30, 2013 leave the District at a point where we anticipate financial stability if no further outside revenue sources are cut. This has been a tumultuous period for our riders and employees and we appreciate their patience throughout this challenging time. Now that we’re on more stable ground, it is time for healing and looking forward to the future. I have done what I needed to do to get AC Transit through this difficult period. AC Transit is in a position to plan for sustainability over the long term. Now is the time for AC Transit to continue to move forward as the District identifies and transitions to a new General Manager to manage, and hopefully build back this important public transit agency to meet the needs of the next decade.”

Past actions by the district to save money included:

Rider Fare Hikes: Riders are paying more due to fare increases.
Service Cuts: Riders also had bus service reduced in March of last year by 7.8% or $10.3 million in service hours with a second round of service cuts in October of 2010 that further reduced service by 7.2% or $11.4 million in service hours.
Management Cuts: More than 70 general and administrative staff positions were eliminated. In addition, a third of its executive staff was eliminated –including cutting four executive management staffers. And, the use of district vehicles has been curtailed and management leave benefits canceled. Collectively, this has cut costs by
$9.2 million.
Reduced Spending: The Board of Directors cut its salary by 5%, cut travel by 50%, and eliminated a special travel account for transit advocacy.

–30–