New contract would raise SEPTA salary, pension costs by $146 million

The transit union that shut down the city's buses, trolleys, and subways last week revealed Thursday the outlines of the agreement that resolved the strike.

The deal is pending a ratification vote next Friday by the 4,738 members of Transportation Workers Union Local 234 employed by SEPTA.

Under the deal, members would receive 10.5 percent raises over the next five years, but would pay a larger share of their health insurance costs. Workers' health-care contributions would increase from 1 percent of their pay to 2.5 percent by 2019.

Employee pensions, the major sticking point in negotiations, would get a complete overhaul, resulting in a 12.8 percent to 15.2 percent increase in pension payments for workers, depending on the number of years worked for SEPTA.

The raises and pension improvements combined will increase the cost of the union contract by $146 million over the five years, according to the union newsletter outlining the contract details.

SEPTA has said the new contract would be covered with money available in its preexisting 10-year budget plan and no additional public funds or fare increases would be required.

In fiscal 2016, SEPTA budgeted $661.8 million for labor and fringe benefits for the transit division. The budgeted amount for fiscal 2017 was $703.4 million.

Both SEPTA and the TWU declined to comment on the contract Thursday night.

The new agreement would use a multiplier to calculate pension payouts instead of the current flat rate. Monthly pension payments would be calculated by multiplying years of service up to the date this contract is ratified by $94. An additional $100 would be added for each year of service after ratification. Workers would pay $50 a week toward that pension total.

Not included in the contract was any change to the amount of break time or time between shifts for vehicle operators. During negotiations, the union had argued that insufficient breaks were causing drivers to work while fatigued.

SEPTA's scheduling policies did not change with this contract, a union representative said. However, those who now work in cash collection booths would gain specific protections under the contract.

Those workers will have to change jobs, but would remain employed as SEPTA continues rolling out a fare card that will replace cash and tokens.

The TWU workers' previous contract expired Oct. 31. The group went on strike Nov. 1 after being dissatisfied with SEPTA's proposal.

A predawn deal Monday ended the strike.

jlaughlin@phillynews.com215-854-4587@jasmlaughlin