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CHARLES FOX / Staff photographer
Gov. Rendell (right) with Mayor Nutter (center) and TWU leader Willie Brown (left) announce the end of the transit strike early today in a gathering at the Bellevue.
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SEPTA, union agree; strike is over

WHEW!

Just when commuters around the region were gearing up for the second week of the six-day transit strike, the Transport Workers Union Local 234 signed a deal that put its workers back on the job.

Gov. Rendell said early this morning at a hastily called news conference at the Bellevue, at Broad and Walnut streets, that the subways, buses and trolleys would be running in time for the "a.m. rush hour."

Union representatives arrived at the Bellevue shortly after midnight to sign the deal, which Rendell said was very similar to the "handshake agreement" that was reached late Friday night.

That tentative agreement fell through on Saturday after the union raised objections regarding two sticking points.

But, U.S. Rep. Bob Brady insisted, the two sides kept talking through the weekend.

"Negotiations never broke down," said Brady, a member of the carpenters union who has been working behind the scenes to keep all parties talking since before the strike began.

"People get frustrated . . . From time to time, people get a little frazzled but you stay there and keep them all talking. If you don't talk. Nothing will get done."

The two sticking points that emerged over the weekend included access by the union to audit pension fund records and the impact of national health-care reform on SEPTA's costs.

Rendell said the health-care issue had been resolved. The audit issue was not addressed this morning. A three-year dental plan, which had not been publicly mentioned as an issue, was added to this morning's deal.

What had appeared to be an acrimonious negotiation turned into a series of back-patting this morning at the Bellevue.

"Even when things broke down, [Local 234 President] Willie Brown did his job," Rendell said. "It's the nature of the collective bargaining process. "It's an inherently adversarial process. And [Brown] was a strong adversary."

Brown, who said a ratification vote would be held in about 10 days, commended Brady. Brady "came in and was plugging away at it and we finally got together and got an agreement," he said.

As recently as yesterday afternoon, it appeared that neither side was likely to budge any time soon."Our position right now is for the union to sign the contract, period," SEPTA spokesman Richard Maloney said. "We're through negotiating."

Local 234 spokesman Bob Wolper said yesterday that the union had balked because SEPTA had wanted to add a clause to reopen the contract for talks with members about out-of-pocket costs should any health-care reform increase costs to the transit agency.

Regarding the audit, he said, SEPTA has told the union that an independent firm audits the fund and that the union could hire an auditor to check that report.

"That is not what a forensic audit is," he said, noting that the union wants to look at the original books and have an independent firm perform its own audit.

"We want to get the information, not deal with the information SEPTA decides to give to us," Wolper said.

The pension emerged as the major issue in negotiations, with the union claiming that its pension is funded at only 52 percent, compared to 72 percent funding for the management pension.

On Saturday, after the union raised its objections, a "frustrated" Rendell said that he would no longer be party to the talks.

"I am out - I have a state to run," he said.

"In my 32 years in government, I have never been more disappointed with a negotiation than I am right now tonight."

He also gave an ultimatum: If the standing SEPTA contract is not put before the union's membership for a vote by midnight tonight, he is taking $7 million in state money with him.

"It is our belief that members would vote overwhelmingly to take this contract," he said.

The tentative agreement reached Friday night was for a five-year contract that called for no raise in the first year but a $1,250 signing bonus, a 2.5 percent raise in year two and a 3 percent raise in each of the remaining three years.

The workers, who pay 1 percent of base salary for health care, would not have had to increase health-care contributions.

The deal also increased workers' contributions to the pension fund from 2 percent to 3.5 percent and raised the maximum pension to $30,000 a year from $27,000.

Local 234 represents about 5,500 bus drivers, trolley and subway operators and mechanics making an average of $52,000 a year.

Staff writer Dan Geringer contributed to this report.

 

Comments   
Posted 04:57 AM, 11/09/2009
nuffera
I do believe the magic number was "7" that Rendell mentioned on Saturday to that incompentent 'Wilie".
Posted 07:01 AM, 11/09/2009
union guy
Way to go Willie Brown and Local 234! Kudos for not backing down. Looks like Rendell was faking it about leaving town with his $7 million. I guess from the settlement news conference that they finally realized you were serious.
Posted 07:31 AM, 11/09/2009
Could.It.Really.Be...ColonelAngus
Rendell gave Willie "we cannot be bought" Brown, 7 million reason$ to get back to work by Monday. Time for SEPTA to re-evaluate their existing employees and to revise their job descriptions. They need to start weeding out the non-performers. I say there are 5,100 employees that they need to re-evaluate and start replacing. Replace them all. No sympathy for these strikers. Not a single ounce. And it reminds me how we don't need union thugs in this country. Replace the bums!
Posted 07:40 AM, 11/09/2009
maureen1002
OK PHILLY... It's now time to WAKE up and make sure this NEVER happens again. I hope Septa is putting ideas into motion to get rid of this union after this contract expires... I don't think the union deserved what they got, but at least I'll be able to go to school and work today!
Posted 07:46 AM, 11/09/2009
center city
Maureen1002....that will never happen...wake up Nuffera....Willie not tha incompentent he got his workers more money....
Posted 08:00 AM, 11/09/2009
larlib
brady u did a great job
Posted 08:00 AM, 11/09/2009
Melyssa
SHLEP-ta ended it's strike, eh? I can think of, oh, about seven million reasons why. FYI, SHLEP-ta union, the union I belong to will not accept or reject a contract offer until the members have voted for or against it, and the leadership will accept that vote. Try it for a change, Widebody Willie!
Posted 08:18 AM, 11/09/2009
argothy
It is hard to admit but Willie did what he's there to do. It sucks that the public was in middle of all this though.
Posted 08:27 AM, 11/09/2009
asiathepoet
I'm proud of Local 234. Great job Willie! If people were paying attention, they will realize that the governor lied about not being able to help Mayor Nutter with the Municipal workers. Thats why their was such a big fuss about laying off 3000 city workers. In lieu of that, Mayor Nutter begged to increase the sales tax by 1% and got it. The state pitched over and over how they could not help bail out the city, but found 7 million for Local 234. Remember, Local 234 was going to walk out with the Municipal workers had they decided to strike awhile back. How do you control people? You instill fear in them. They "yellow" municipal union leaders (and I belong to 427) were so afraid of the economy that they thought it better to keep the people working. The people were going to keep working. I wonder how they feel now, finding out it all was a lie about not having any money. This is the City of Philadelphia! One of "THE" richest cities in America. Go figure.
Posted 08:35 AM, 11/09/2009
SayHello2MyLittleFriend
I think I am going to my boss and tell him that I don't want "the impact of national health-care reform" to impact my costs. His response, "you and me both." Of course, this does not apply to Septa workers. Only to the rest of the hard working people in Philadelphia.
Posted 09:09 AM, 11/09/2009
chrissmith
This is a pro-management contract that is being signed. (1) The pay freeze in the first year is crucial. I'm surprised that the union agreed to it. By having a pay freeze, there is no compounding for future years. For example, in year 2, the 2.5% increase is coming off a salary that will have been TWO AND A HALF years old (last year of prior contract, plus 1/2 year no-contract, plus 1 year of pay freeze in new contract). A true pay freeze is the "gift that keeps on giving" for management, due to this compounding factor. (2) But what about the $1250 initial payment? It doesn't cost SEPTA anything. They made this $1250 per person in saved labor costs over the past week. And it is much, much more preferable to having a real pay increase, due to compounding. (3) Pension contributions will go up from 2% to 3%. (4) The wage increases in years 2, 3, 4, and 5 are from 2.5 to 3 percent. This barely covers inflation. These are not "real" increases in wages. All in all, a great contract for management.
Posted 09:10 AM, 11/09/2009
johnny o
Next up: Certainly a price hike. What you won't see: Hike in courtesy, professionalism, and customer service. Another win for the selfish, overpaid, underworked unions. To Rendell and Brady, the union sycophants, thanks for nothing. Mayor Mike is the only politician with any sand in this city.
Posted 09:39 AM, 11/09/2009
jphil
I asked the bank I work for to hire an independent auditor to review the books to make sure I cant squeeze a raise out of them. They laughed.
Posted 09:48 AM, 11/09/2009
Philatonian
Good job guys, you just sucked another wad of cash out of a broken system leaving us with another decade of no new lines, broken token machines, and lacking security. Thanks so much. Way to show gratitude to the customers paying you twice as much as we do to teach our children. Hey riders, do these Union Thugs a favor, grab a bike and buy some walking shoes. They seem so bent on running SEPTA into the ground, let's give them a hand!
Posted 09:55 AM, 11/09/2009
AlanB
UnionGuy, Please go back and read the story again. Rendell's deadline for taking away the $7M was midnight tonight. It was the union that caved, not wanting to see if Rendell was serious. They settled before his deadline to remove the money.
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