Web Search powered by YAHOO! SEARCH

options

Commuters resume their routine aboard the Market-Frankford El yesterday, heading into the city from the Frankford Transportation Center on the first day of service after a seven-day strike by transit workers.

READER FEEDBACK

How the SEPTA deal got made

By DAN GERINGER
Philadelphia Daily News

geringd@phillynews.com 215-854-5961

Friday night on the 11 o'clock live TV news, Gov. Rendell, with U.S. Rep. Bob Brady by his side, announced that the transit strike that had crippled Philadelphia for a week probably would be over by Saturday night - but it wasn't.

Rendell said that negotiators for SEPTA and Transport Workers Union Local 234 had agreed on contract proposals - but he wasn't aware that they hadn't.

The governor said that all that remained was for the negotiators to get the approval of their executive boards on Saturday morning - but they didn't.

The strike by the city's 5,500 unionized bus, train and trolley operators and mechanics, which began without warning at 3 a.m. last Tuesday and ended without warning early yesterday, was out of sync with elected officials' announcements from start to finish.

"When Rendell said on Friday night that an agreement had been reached, he was not basing his announcement on any direct conversations with the union," a TWU Local 234 source close to the negotiations said last night.

"The only people who had met and reached an understanding on two of the remaining issues - pension contributions and health care - were Congressman Brady and [Local 234 President] Willie Brown. Just the two of them. SEPTA and the governor were not involved."

The source said that on Saturday, when the union received SEPTA's revised contract proposal, the two "thorniest" stumbling blocks were:

PENSION PLAN: SEPTA was asking union members to increase their pension contributions because the union's pension fund was funded at 52 percent, the source said. But when the union, alarmed that the funding level was so low, wanted to do a forensic audit on pension-fund books, which had possible legal consequences, SEPTA "refused adamantly," the source said.

"The more they refused, the more we believed something was amiss. If something is not kosher, you're going to fight tooth and nail against an audit."

HEALTH CARE: SEPTA wanted contract language that gave it the right to adjust employee costs and/or benefits if national health-care overhaul increased costs, the source said.

"For us, this was like which poison were we willing to swallow - increased out-of-pocket expenses or cut benefits?" the source said. "It was an insurance policy for SEPTA for their health-care expenses. It was unacceptable."

Instead, the union wanted any issues created by national health-care reform to be handled by the joint labor/management cost-containment committee that is already established in the contract.

Late Sunday, SEPTA agreed to this, and the union withdrew its demand for the forensic audit.

"The union decided that it has other legal remedies to address the underfunding of the pension plan and concerns about possible mismanagement of the plan and its funds," the source said. "The union has every intention of pursuing these remedies."

The two sides also resolved a dispute over funding dental-care insurance.

Early yesterday, the strike was over.

SEPTA spokesman Richard Maloney said last night that Brady, a member of the carpenters union, was the key to negotiations throughout the strike week.

"After the process fell apart over the weekend, 99 percent of the credit for getting it moving again towards a resolution goes to Congressman Bob Brady," Maloney said.

"Both sides were exhausted," he said. "The governor was exhausted. From SEPTA's standpoint, we had gone to our extreme limit. There was no further discussion. We had discussed the issues inside out and upside down to the point of futility. But the congressman never gave up.

"He has a remarkable reputation in this city as a lifeline between management and labor," Maloney said. "When the two sides are at loggerheads, Brady's the go-to guy who keeps the conversation going, which is the absolutely critical factor in getting a resolution."

On Saturday, when Rendell, frustrated by yet another breakdown in contract talks, vowed to take the $7 million in state funds he had brought to the table and leave to deal with the rest of Pennsylvania's problems, the media reported a breakdown in talks.

"We never stopped talking," said Brady, who shuttled between the TWU, SEPTA and Rendell, and put the major parties on the phone with each other at least 10 times over the weekend.

"Willie is a very sharp guy. He found a way to make it work within the framework" of SEPTA's money package, Brady said.

On the other hand, Mayor Nutter was a "major hindrance" to negotiations, said another source close to negotiations.

On Friday, the mayor threatened to file a city lawsuit to stop the strike, but, hours later, the city law department issued an opinion that the city couldn't do so because there was no imminent threat to public health, safety and welfare.

Before the World Series, Nutter said that there would be no strike, but the TWU had never agreed to pull it off the table, said Brown, who was infuriated by the mayor's remarks.

Nutter "came in like a bully," said a third source. "He wanted zero [wage increases] in the first year, as low as you could go. Really, he wanted nothing all the way [through five years] if he could get it."

Nutter wanted to keep SEPTA wages low so city union leaders would not use the TWU's new contract as a model for their own wage demands in their long-delayed labor negotiations, the source said.

Nutter showed up when the tentative agreement was announced late Sunday. "Willie didn't want to shake his hand, but eventually did," the source said.

When Nutter was asked about his relationship with Brown yesterday, he replied, "In contract negotiations, a lot of things happen. This is not the Dr. Phil show. Things happen, things get said. We stood next to each other. I shook his hand. It's over. They signed a contract. Buses, trains, trolleys, everything is running. Let's not have a psychology class here."

The union's members will receive a $1,250 bonus upon ratifying the contract in the next several days, and raises of 1.5 percent in July and 1 percent in December 2010, 2.5 percent in 2011, 3.5 percent in 2012 and 3 percent in 2013.

Union members' pension contributions will increase from 1.5 percent of base salary to 3 percent over the length of the contract.

Staff writers Kitty Caparella and Catherine Lucey contributed to this report.

CURRENTLY SHOWING ON PHILLY.COM

A Philly girl's love for Michael Vick

Philly Uncorked: Cooking and wine

Mob Scene: Bad Cop

SnapGlow.TV: Frame your face

The Gossip with Marnie Hall: El Cafeito

Comments

Posted 07:08 AM, 11/10/2009

union guy

The TWU was much smarter about the way to handle these negotiations than either the Governor or the Mayor. Those pols were lucky to have Brady involved or the strike would still be on. Once again the anti-public union pols, Rendell and Nutter, underestimated the strength, resolve and intelligence of a union. Good job TWU 234! Chumped them again!

Posted 07:12 AM, 11/10/2009

Trident252

The TWU did a great job leading SEPTA towards privatization. We will see who was smarter then.

Posted 07:13 AM, 11/10/2009

bill_from_media

the new deal should have removed septa's ability to strike.

Posted 08:10 AM, 11/10/2009

phlyfumblr

Rendell should have only offered the money with a stipulation that they could not strike like that again. SEPTA is a joke.

Posted 08:20 AM, 11/10/2009

PhillyTime

None of them were intelligent. And using the word intelligent when referring to the union or the city is an oxymoron. It's easy to look intelligent when you are holding the riding public hostage. The union are a bunch of scum. SEPTA NEEDS TO PRIVATIZE!

Posted 08:51 AM, 11/10/2009

sgrainger

TWU is a good example of what is wrong with union's in this country. Thye seem to have this sense of entitlement. If they don't like the pay or benefits, they are free to leave and look for employment elsewhere. As a taxpayer, I am tired of bailing out theses unions for their inefficiency. Neither side brought any honor to themselves.Too bad there wasn't a Reagan type of leader around.

Posted 08:54 AM, 11/10/2009

flyingshrapnel

Unions have moved many companies off-shore with wage/health benefits costs. The cost of production and the ever shrinking dollar also weigh in. Septa obviously can't go offshore but they will stick it to commuters with a fare-hike and cut routes to pay for the avaricious TWU. Unions were the creation of wealthy socialists to drive a wedge betwixt labor and management. The cumulative effect being a less competitive marketplace as businesses either went under or moved offshore, paving the way for monopolies. (i.e. Rockefeller)

Posted 09:06 AM, 11/10/2009

admin

Union guy is clearly either joking or is in fact a moron like most uneducated union members. Intelligence of the union...LOL. An uneducated low end peasant trolley drive from ghetto West Philly is the leader of the TWU and you talk about intelligence. Thats a good one. Again, if you are just joking that you succeeded in making me laugh. If not, well, that is just ashame.

Posted 09:15 AM, 11/10/2009

chrissmith

My only reaction is: I'm voting GOP for governor in 2010. I can't believe Rendell decided to just "throw in" SEVEN MILLION DOLLARS of taxpayer money, OUR money, to sweeten the union's deal. People are getting sooooooo tired of all this union BS.

Posted 09:22 AM, 11/10/2009

thinking

flying s- the unions were created out of a dire need for health and safety. Working conditions were brutal and dangerous and people worked long hours with no overtime. The unions helped to bring a dignity to work with fair wages and benefits. Before you talk of greed and avarice - look to management - of any corp or agency - the top always has fat salaries and lots of benefits - sometimes for life.

Posted 09:44 AM, 11/10/2009

philly transplant

Wow, Admin - You're a real piece of work. I don't even agree with Union Guy, but your post is ridiculous. When you're ridiculing someone about being uneducated, consider using a dictionary and proof-reading your comment. "Ashame" isn't a word. You have a run-on sentence and use incorrect demonstrative adjectives. I'm just saying, if you want to talk about education and intelligence...

Posted 10:26 AM, 11/10/2009

Wassup!

We have only to look at the auto industry and closed factories to see how unions have destroyed jobs in this country. To see the future one has to study the past. Just like states are privatizing their highways, public utilities and transportation will go the same way.

Posted 10:38 AM, 11/10/2009

johnny o

As long as we've union kiss-asses as Bob Brady and Ed Rendell, the unions will stay around. For these crooked, spineless politicians depend on the union vote come election time. You scratch my corrupt back, and I'll scratch yours. Privatize, and dump SEPTA.

Posted 11:29 AM, 11/10/2009

Coolvan

I cannot believe the publics attitude about unions. I thought only the South thought this way. What the hell is wrong with this world? Without unions we would all be at minimum wage($7.25) and getting straight time. You all need to replace your anger and vote out your governor and vote in a union friendly politician. SEPTA deserves whatever they ask for because management gets paid to do NOTHING. The workers are the ones to do ALL the work and get paid peanuts for making the companies rich. WAKE UP AMERICA! The commuters should have went on strike for the workers to show support.

Posted 11:32 AM, 11/10/2009

glherbert

To assume most union members uneducated and less intelligent, to assume West Philly consist only of the getto and to put this in writing, wow... aren't you special, admin? Do you realise that educators and medical professionals are unionized.Have you ever heard of Overbrook,and Wynnefield, these are considered West Philly too. I don't know the last time you did a visual of these sections but real estate values in the 300k and higher,portions of Fairmount Park, tree lined streets, no corner stores,vagrants and such. Can't find this in Center City or Society Hill... Remove the emotion and maybe you can post educated and intelligent comments!