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World Series, finances loom over SEPTA talks

By Paul Nussbaum

Inquirer Staff Writer

Both SEPTA and its largest union have strong hands to play as the threat of a transit strike looms this weekend.

The union can inflict maximum pain, calling a strike just as the World Series and the national spotlight arrive in Philadelphia.

SEPTA, meanwhile, can claim real financial distress as its costs rise, its ridership declines from recent record highs, and anticipated state subsidies are threatened.

In the middle, as usual, is the riding public.

Those who depend on SEPTA buses, subways, and trolleys to get to work or school - never mind sporting events - can do little but watch the labor struggle from the sidelines.

The union said yesterday that its deadline for going on strike was a minute after midnight tonight.

Gov. Rendell, who was instrumental in breaking an impasse to settle the last SEPTA strike in 2005, "would, if asked, try to be helpful," spokesman Gary Tuma said yesterday. Rendell will be in Philadelphia for the World Series.

U.S. Rep. Bob Brady (D., Pa.), a frequent mediator in local labor disputes and an architect of the 2005 SEPTA settlement, said "it's too soon" for him to get involved.

"As long as they're talking, they're fine," he said.

Mayor Nutter said there was "no acceptable reason there should be a strike." He urged SEPTA and the union to "stay at the negotiating table and figure this out."

Game 3 of the World Series is scheduled for tomorrow night in Philadelphia, as are Game 4 the next night and Game 5 Monday night.

Nutter said a possible SEPTA strike during the Series was just "one more additional component" to a hectic weekend on the national stage for Philadelphia. There will also be a Flyers game tomorrow afternoon, a Pearl Jam concert tomorrow night as the Spectrum finale, and an Eagles game Sunday afternoon.

A transit strike would affect not only sports fans and commuters, Nutter said. "I'm also concerned about people being able to get to their doctor and hospital," he said.

Bargaining continued yesterday at the Holiday Inn in Old City, with both SEPTA and Transport Workers Union Local 234 led by first-time chief negotiators, SEPTA chief labor officer Fran Keating and TWU president Willie Brown.

The sides yesterday discussed for the first time the heart of the dispute: wages, benefits, and pensions.

"We're getting there . . . slowly," TWU spokesman Robert Wolper said.

The union, which represents about 5,100 bus drivers, subway and trolley operators, and mechanics, has been without a contract since early spring.

The World Series offers the union unanticipated leverage. SEPTA and the city would dearly like to avoid the spectacle of milling crowds trapped in South Philadelphia after a game.

But SEPTA also has leverage: a worsening financial condition.

Passenger revenue is down about 5 percent from a year ago. Operating expenses were about $5.5 million higher through August than in the same period in 2008.

And some anticipated state subsidies for SEPTA may end in June if the state continues to be denied federal permission to impose tolls on I-80.

Although SEPTA's budget this year includes a 3.5 percent increase for labor costs, the transit agency said none of that money was earmarked for new raises. It is needed for previously contracted wage increases, 93 additional employees, and the labor costs of 65 new customer-service initiatives, chief financial officer Rich Burnfield said.

According to TWU officials, SEPTA management has proposed no wage increase for the first two years of a four-year contract and a 2 percent increase in each of the final two years. It also wants to increase worker contributions to health coverage from 1 percent to 4 percent and freeze the level of pension benefits.

The union wants a 4 percent raise each year and health contributions to remain 1 percent. It is also seeking an increase in pension contributions from $75 to $100 for every year of service.

The TWU also is seeking changes in subcontracting and training provisions to allow members to do maintenance and repair work on buses and trolleys now done by outside contractors.

SEPTA bus, subway, and trolley operators earn from $14.54 to $24.24 an hour, reaching the top rate after four years. Mechanics earn $14.40 to $27.59 an hour.

Contact staff writer Paul Nussbaum at 215-854-4587 or pnussbaum@phillynews.com.

Staff writer Marcia Gelbart contributed to this article.

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Comments

Posted 06:55 AM, 10/30/2009

rojopa

Let them strike. Their nothing but a bunch of union thugs anyway. Fire them all!

Posted 07:05 AM, 10/30/2009

meteo30

I predict a mess this weekend. Up the gas tax a nickle; 1 cent to mass transit, 3 cents to road projects in the county the tax is collected and 1 cent into a state fund. Let the northern tier find ways to pay for their own highways.

Posted 07:22 AM, 10/30/2009

Sillimish

Fire them. And if the Phillies organization is serious about its devotion to this city, they should organize shuttle buses for fans going to the game. Circumvent SEPTA and show them that they are a bunch of self-centered thugs who have no sense of community.

Posted 07:28 AM, 10/30/2009

phljoe

I had to take a 5% paycut and forfeit my yearly increase at my job due to the economy. That's the real world. SEPTA workers need to come down to earth.

Posted 07:30 AM, 10/30/2009

tjinphilly

In an economy where people have lost their jobs, lost their health insurance, or had wage reductions, they are complete pigs. They don't deserve the job if this is the way they act. Has there EVER been a contract talk with the TWU that didn't come to a strike? greedy, greedy, greedy.

Posted 08:06 AM, 10/30/2009

Peacemaker

Anti-American Union SCUM. Let them strike, I'll gladly walk.

Posted 08:12 AM, 10/30/2009

iamquilt

Real world - the events of this weekend are great for the city. Still, those of us fortunate enough to have a job need to get to work everyday. Many of us have endured pay freezes/cuts, increases in health care costs, cuts to pension benefits (if they were there in the first place), and yet we feel blessed to have our jobs. Many Septa employees don't have a clue what it's like to do more with less. Let them strike - I wasn't going to any of the events down in South Philly anyway. I've got to save my energy for walking to work on Monday!!!

Posted 08:13 AM, 10/30/2009

STEVE5444

SOCIAL SECURITY INCREASE= $ 0. Does the union understand that??

Posted 08:15 AM, 10/30/2009

GUNTHER48

They are losers and are bringing this country down. FIre them..most ride free in the city anyway and subsidized by the regional rails, the peopel that REALLY pay for the ride. They are scum...it's amazing they even know how to follow the route they drive.

Posted 08:23 AM, 10/30/2009

grampop64

The union all ready backed down, there will be no strike and the union changed it's strike date again showing weakness

Posted 08:26 AM, 10/30/2009

MASTERNC

I think the advice is to steer clear of the city this weekend if the strike does happen and you don't have tickets to an event.

Posted 08:41 AM, 10/30/2009

MaggieL

Remeber this shakedown the next time somebody wants you to support Card Check. Are you listening, Arlen Specter?

Posted 08:53 AM, 10/30/2009

wec4104

A quick trip to TWU Local 234's website shows that union management is feeding their membership a steady diet of mistruths and unsubstantiated exagerations, presumably to build support for a strike. It says "SEPTA refuses to back down from it's position of no raises for the next five years." From what I hear, SEPTA has offered 2% raises in the third and fourth years, and the contract is only a four year contract. The TWU site also claims "ridership has increased and the fare box is up 30%". Okay, but compared to when? 1985? Meanwhile the above news story states that revenue is down 5% compared to last year. ---which is much more meaningful given that it has a timeline. Rabble rousing union bosses trying to stir the pot, big surprise.

Posted 09:01 AM, 10/30/2009

Union Jack

Just ANUTTER example of how the Mayor has no clue about leadership. Aligning with Septa management against the workers shows his anti worker mentality. It was perfectly ok for him to try and take advantage of the fiscal crisis to destroy workers benefits, but God forbid Septa employees use the leverage they have. Septa has had months to address the contract stalemate and has done nothing.