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BOB WILLIAMS / For The Inquirer
Commuter Tila Ayala of Philadelphia protests the SEPTA strike. She was at Suburban Station during rush hour Friday.
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Strike: A risk worth taking?

Experts said SEPTA workers had little to lose because they could not easily be replaced.

When 62 pipe and steel workers at Precision Tube Co. in North Wales walked off the job Aug. 7, the economy had just dropped 274,000 jobs. Unemployment was nearing 10 percent, and almost 14.5 million people were out of work.

"I know it sounds crazy to go out on strike during a recession," said Donna Ulrich, unit president of United Steelworkers of America Local 6816-01. "It was really scary, because I knew there were no jobs out there."

Striking during a recession? Is it crazy?

That depends, experts say, on the financial health of the business, the skill of the workers, the availability of qualified replacements, and, in large part, whether the union represents public- or private-sector employees.

Ulrich's steelworkers, out until Sept. 21, probably faced greater risks than Local 234 of the Transport Workers Union, which sent 5,100 SEPTA drivers and operators out on strike Tuesday.

None of Ulrich's members crossed the picket line. But Precision Tube, which did not return several calls for comment, hired temporary workers who did.

Hiring replacements is rare in the public sector.

"I can't think of a single situation where workers were permanently replaced on the public sector," said Gordon Pavy, national collective-bargaining director for the AFL-CIO in Washington.

There is a notable exception, and it made labor history.

In 1981, when members of the Professional Air Traffic Controllers Organization walked out, President Ronald Reagan replaced nearly all of them, breaking the union.

"I think a public employer would be hard-pressed to do that," Pavy said. "We like to think of our government agencies and quasi-government agencies as being more fair-minded than private employers who are out for a profit."

That gives public-sector unions an unfair advantage, said Chris Edwards, an economist for the conservative Cato Institute in Washington.

"There is no downside for public-sector unions to push too far because they always have their jobs," he said.

"With private-sector unionism, there is a tug and pull between employer and employee," Edwards said. "There is an economic struggle.

"Public-sector unions have government officials in a tight spot. It's not their money they are playing with."

In 2008, 12 percent of all employees were members of unions. In the private sector, the percentage was 8, but in the public sector, more than a third of employees, 37 percent, were in unions.

"Public employers are more sensitive to political pressure, and unions are able to generate political pressure," said Paul Clark, professor of labor studies and employment relations at Pennsylvania State University. "In the private sector, if a union used its political resources to pressure an employer, the employer wouldn't care. But public employers are elected."

Public or private, striking in a recession still requires careful strategic calculations, especially now that unemployment has topped 10 percent with 15.7 million out of work.

"Historically, unions have tended not to have a great bargaining advantage in a recession because of the high unemployment that accompanies it," Clark said. "With high unemployment, it does present the possibility of hiring replacement workers."

However, in a recession, employers might be less likely to risk even one day of missed production or botched production with unskilled substitutes.

"It would be very difficult to replace an entire force of professional bus drivers," Clark said.

In the end, "overall economic conditions are not as important as the financial conditions of the particular employer," Pavy said. "Unions and workers in general are reluctant to strike in any situation, whether the economy is healthy or weak, but it really depends on the health of that employer."

Unions tend to hold back if companies are ailing - many workers have agreed to concessions in this economy. But if revenues and profits are up, it's a different situation.

That was the point that 27,000 members of the International Association of Machinists and Aerospace Workers made when they went on strike against Boeing Co. in September 2008, stunning observers who wondered why a manufacturing union would picket when the sector was shedding jobs.

Even as the recession deepened from its December 2007 start, the company had been doing well, the union argued.

The strike lasted eight weeks.

"This contract gives the workers at Boeing an opportunity to share in the extraordinary success this company has achieved over the past several years," Mark Blondin, the union's aerospace coordinator and chief negotiator, said in a union news release when workers returned to the job.

In Philadelphia, the Transport Workers Union has also been making that argument in its dispute with SEPTA.

"Yes, there's a general recession," union spokesman Jamie Horwitz said, "but not everyone hurts in a recession." SEPTA, the union said, is doing well despite the recession, with increased ridership and an infusion of federal stimulus money.

Not surprisingly, SEPTA's management disagrees, citing declining ridership in recent months, endangered state subsidies, and increased operating costs.


Contact staff writer Jane M. Von Bergen at 215-854-2769 or jvonbergen@phillynews.com.

Comments   
Posted 06:30 AM, 11/08/2009
Billy Ray Winthorpe
Excuse me, Horwitz? "Not everybody hurts in a recession?" Well, you can probably count most of your riders among those who do hurt and they're hurting worse now thanks to your people. I'd also like to know a bit about the numbers from both sides. Management says there are more riders; union says there are less. Management says they're losing out on state money; union says fed money more than makes up for it? They can't both be right, can they?
Posted 06:31 AM, 11/08/2009
Jean Valjean
Federal stimulus money is public-welfare money. From my pocket, to Obama's, to the TWU, I see how this works. More welfare. Thanks to the stimulus, the nation is awash in it, so the TWU is smart in ripping off their 'share' while Obama is in office.
Posted 07:02 AM, 11/08/2009
phillyguy215
Jean Valjean you are so wrong. You sound like a racist. Thats right blame Obama for everything. I hope you did the same thing when Bush was in office. I'm guessing you loved Bush and thought he did everything right .
Posted 07:24 AM, 11/08/2009
horriblekitty
Is there anything the union could do about their crappy leadership? Could the NLRB step in? On the news last night, no strikers would go on camera, but it was paraphrased that they would like the chance to vote on what Rendell proposed.
Posted 07:25 AM, 11/08/2009
James
Federal stimulus money cannot be used for operating expenses, it must be used for construction projects that will put people back to work. Even if it did not exist, SEPTA would still have substandard physical facilities with declining maintenance. Reduced state subsidies, declining ridership. higher operating costs which will only be made higher by a union contract will still hurt SEPTA. Raising fares will only drive away customers. Simply fire the union and offer jobs to members who will leave the union to rejoin SEPTA.
Posted 07:35 AM, 11/08/2009
MBW
Criticism of Obama is always racist, isn't it?! Jean Valjean is correct in his assessment. Just where do you think the money is coming from, phillyguy25?
Posted 07:46 AM, 11/08/2009
pete099
Phillyguy, cut the racist bull. Jean makes a point that federal money and state money is at the front of why the union is striking. Without that money Septa is bankrupt. Now more money will be allocated to the union salary and benefits making Septa more dependent on the state and feds for support. Sounds like welfare to me. Septa should start to hire mechanics and drivers now and begin service on the busiest routes and work their way up to full employment. This will take some time but the benefits will be rewarding. Unions in the public sector are wrong due to the fact that elected officials will rarely due what is in the best interest of the business.
Posted 08:35 AM, 11/08/2009
rbpeeple
I think only 37% of SEPTA's budget comes from fares...the rest is from state, fed, and local taxes. So the government IS subsidizing public transport...are therefore the people who used it. It's an indirect welfare in a way. However, the same thing happened under Bush. As for the racist talk...haven't we all had enough of this?
Posted 08:58 AM, 11/08/2009
jacksplat
Shut SEPTA. Fired everyone of them and start over as a PRIVATE agency. With wages not even close to what they are getting now. They average over $52,000 a year..not including the outstanding benefits. We can easily get the replaced for barely half that and big cuts in benefits. This union is absolutely nuts.
Posted 09:21 AM, 11/08/2009
Dow18k
I guess my e-mail to Governor Rendell worked. I told hem not to give away my hard earned tax dollar as a signing bonus. Good to know he is listening. He should have stayed out of this fight and focused on his Eagles pre-game show. What the heck is he doing on such a show, oh forgot, for the fame and $$$$$.
Posted 09:41 AM, 11/08/2009
phillychik69
I saw a vid on youtube of Ed Rendell saying something to the effect that the SEPTA workers on strike can't be fired. What I wanna know is WHY NOT? Anyone else's job would be forfeit under such circumstances. They haven't got a binding contract at this point, haven't since March, if I understand it correctly. So, why is SEPTA management bound by theterms of a non-existent contract? FIRE THEM ALREADY, WILL YOU?
Posted 10:13 AM, 11/08/2009
bxrmn32
The biggest problem with this strike is that the puploic has no recourse against the union for what they are doing. People blame SEPTA, but those complaints are fielded by management. You could yell at your bus driver, but what does he care? When all is said and done, he'll be making $52K a year, guaranteed raises (regardless of performance), and paying next to nothing for health care. All for a job that he won't get fired from. If the union leadership refuses to put any offer to a general vote, than the entire Delaware Valley should be allowed to vote to bust the union. Otherwise, what does the union care about the public? Not much considering they walked out at 3am with no warning!
Posted 10:24 AM, 11/08/2009
NJsux6569
God Bless Ronald Reagan.
Posted 11:14 AM, 11/08/2009
chrissmith
ANTI-TWU PROTEST TODAY AT 1PM at SEPTA HQ, 1234 Market Street. See http://twitter.com/strikeprotest. Be there!
Comment removed.
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Today's personal savings rate of 3 percent is nearly double that of a year ago. Economists say it could rise as high as 8 percent as households try to rebuild savings shredded by the recession. Yet all that saving isn't exactly paying off.