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ELIZABETH ROBERTSON / Staff Photographer

U.S. Rep. Bob Brady and Gov. Rendell announce a tentative agreement that could end the four-day-old transit strike.

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Should an independent audit be permitted?

SEPTA accord falls apart

Gov. Rendell, blaming union leaders, called for a rank-and-file vote. His demand was rejected.

By Paul Nussbaum

Inquirer Staff Writer

A tentative agreement to end the strike by SEPTA workers collapsed in acrimony yesterday, leaving prospects slim for a quick resolution to the six-day walkout.

Gov. Rendell, who tried to broker a settlement, blamed the leadership of Transport Workers Union Local 234 for the breakdown and called for a direct vote by union members on the proposed contact. If such a vote isn't taken by tomorrow, the governor said, he will withdraw nearly $7 million in state funding offered to pay for worker bonuses.

Local 234 president Willie Brown said the union's constitution did not permit a direct membership vote on a contract that the union's executive committee had rejected.

"We're not going to take it to a vote," he said. "For the same reason the president of the United States would not bypass Congress and go directly to the people." He dismissed Rendell's demand as an effort to divide the union.

Referring to Rendell's vow to withdraw the state funding, Brown said, "I am not for sale."

At a news conference last night, Rendell, joined by Mayor Nutter, SEPTA board chairman Pasquale T. "Pat" Deon, and other SEPTA officials, said he would no longer act as an intermediary in the negotiations.

"I'm out," he said emphatically. "I have a state to run."

Rendell, who described himself as "entirely frustrated," called the failure to reach an agreement "nuts," and said he had "never seen anything like it in 32 years in government."

Nutter echoed Rendell's call for a vote on the proposed contract: "I agree with the governor - the members would vote for this deal. It's a good deal."

Rendell said the union made new demands yesterday after a handshake agreement with U.S. Rep. Bob Brady (D., Pa.) was announced Friday. The new requests included an independent audit of the SEPTA pension plan, which the union says is underfunded and mismanaged.

"If we're going to pay more in, we have to be confident with where the money is going," Brown said last night at his own quickly called news conference. He said the union wanted a forensic audit rather than the less-comprehensive audit that SEPTA offered.

No new contract negotiations were scheduled, and the acrimonious end of the near-deal leaves SEPTA riders with little reason to expect that buses, subways, and trolleys will run again soon.

When Rendell and Brady announced a tentative settlement late Friday, they predicted service could be restored by last night.

But yesterday Brown predicted a long strike.

Unless SEPTA yields on the audit and on a provision regarding possible future health-care costs, Brown said, "I guess we will be here for a while."

The proposed five-year contract would have provided a $1,250 bonus upon ratification, a 2.5 percent raise in the second year, and a 3 percent raise in each of the final three years. It would have increased workers' contributions to the pension fund from the current 2 percent to 3.5 percent and would have increased the maximum pension to $30,000 a year from the current $27,000.

The union, which represents about 5,100 bus drivers, subway and trolley operators, and mechanics making an average of about $52,000 a year, went on strike at 3 a.m. Tuesday.

Efforts to reach a final settlement fell apart around midday yesterday.

Brown said that he had agreed to a settlement only in principle and that late "smoothing" by SEPTA of financial details had upended the deal. Rendell and SEPTA officials said the union at the last minute had asked for nine changes in the proposed agreement that would have increased costs by $7 million.

SEPTA agreed to one change: extending the period over which workers' pension contributions would be increased. And the union eventually withdrew six other proposals, Rendell said.

But the two remaining differences torpedoed the deal, Rendell said. One was the forensic-audit request. The other was the union's rejection of a SEPTA request to revisit health-care provisions in the contract if national health-care legislation increases the agency's costs.

The pension audit is the biggest obstacle.

"I asked for one thing that blew this thing up," Brown said yesterday. "We are willing to pay for a forensic audit. What are they afraid of?"

The union has made the health of the pension fund a central issue in the strike. The SEPTA pension fund for TWU workers is funded at about 53 percent of total liabilities, compared with 65 percent for the SEPTA managers' pension fund.

Union leaders have said the fund has been mismanaged and underfunded for years and is at risk of not being able to meet its obligated pension payouts in the future. SEPTA officials say the fund is sound and has always met its pension obligations.

SEPTA officials said the union was already involved in management of the fund, as it has two representatives on the eight-member board that oversees the fund. Brown said the members were not permitted to vote; SEPTA said they were allowed to.

SEPTA general manager Joseph Casey called the pension audit request a red herring. He said all the pension board members, including the union representatives, had access to an independent annual audit by national actuarial firm Milliman Inc.

Brady said the union's audit demand "is just purely the trust factor."

"They don't trust SEPTA on this," he said, adding that he was disappointed the deal broke down but would keep working to resolve the matter. "It's a shame. It's just a shame."

Some participants in the talks said yesterday that the union's executive committee appeared divided and that former local president Jeff Brooks, now an official in the union's international leadership, had taken the lead from Brown in the bargaining.

Rendell said Brooks had replaced Brown as the union's chief voice yesterday.

"It's very curious that Willie disappeared after being the point person for so long," Rendell said yesterday. He said that he had asked Brooks about the Friday-night deal and that Brooks had replied, "I wasn't there."

"There's clearly a division within the union leadership and the president about what's going on," SEPTA board member Thomas J. Ellis said. "Right now, we're not sure who's in charge."

Brown, flanked by the executive committee members at his news conference, dismissed that assertion as "the oldest trick in the book. . . . They're trying to divide and conquer."

"Jeff Brooks is a good friend of mine. If he could get us a contract, great. . . . We are not divided," Brown said. Of dissension within the union, he said, "I know there are people who disagree with me, but that's democracy."

He said he had received calls from many TWU members urging him to "stay strong. We got you."

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

Inquirer staff writer Jeff Shields contributed to this article.

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Comments

Posted 06:11 AM, 11/08/2009

john 16

willie brown should get dc33 and dc47 to go on strike with the septa workers

Posted 06:15 AM, 11/08/2009

brian stewart

THE HOLDUP IS NOW SEPTA WON'T ALLOW THE UNION TO AUDIT THEIR BOOKS, WHY NOT, SOMETHING TO HIDE, IS SEPTA AFRAID THAT THE TRUTH WILL COME OUT AND SHOW WERE THE MONEY IS AND WHO IS BEING PAID THAT MONEY, ANYTIME THEIR IS THE WORD AUTHORITY BEHIND IT SUCH AS PARKING AUTH.PORT AUTH SEPTA AUTH. ITS ALL A PATRONAGE DUMPING GROUNDS FOR THE GOV. YOU NEED A JOB SEE ED ONE OF THE AUTHORITYS WILL TAKE YOU IN WHETHER YOU ARE NEEDED OR NOT. BUT BACK TO THE CONTRACT BROWN IS AN IDIOT HE IS IN WAY OVER HIS HEAD AND HE KNOWS IT, PEOPLE WILL SAY 11 AND 1/2 PERCENT OVER 5 YEARS NO INCREASE IN HEALTH BENEFIT PAYMENTS IS A GOOD DEAL BUT WHAT THEY LEAVE OUT IS THE FINE PRINT IF THE NAT. HEALTH PLAN GOES IN THEN SEPTA WANTS THE UNION TO PAY THE DIFFERENCE, FAT CHANCE SINCE EVERYBODY KNOWS THE HEALTH PLAN IS GOING TO COST A LOT SO SEPTA IS TRYING TO STICK THE UNION WITH THE COST, NOT GOING TO HAPPEN, THE PENSION COST JUST ABOUT WIPES OUT THE RAISE BUT SEPTA WON;T TELL YOU THAT AND AS FOR FAST EDDIE TAKING BACK THE 7 MILLION IN STATE MONEY REMEMBER ONE THING ED ITS NOT YOUR MONEY.

Posted 06:29 AM, 11/08/2009

GoingPostal10

Ed said, I'm outta here, I've gotta a post game live show that I have to run. I mean a state I have to run. er...ahhhhhhhhhhhhhhhhhh!

Posted 06:32 AM, 11/08/2009

FJG JR

Why isn't the Rhino weighing in? She and Nutter together make a lovely couple. But, I have it from a good source, that could never be possible. Willie, take your time, they are taking our money.

Posted 06:36 AM, 11/08/2009

ipaymytaxes

If only Rendell would stand up to Septa like Regan did in '84 against the Air Traffic Controllers... Regan gave them a 48 hour ultimatum, return to work or be FIRED. They called his bluff and he FIRED 85% of them... How many of us have been effected from this economy? Between salary freeze, increased healthcare costs..., reduced 401k contributions, reduction in workforce, increase in workload... SEPTA is demanding to be sheltered from what the rest of the world has to experience. Companies need make changes to survive financially... THE EMPLOYEES ARE FREE TO WALK! That's how the REAL WORLD works... if you don't like how you're treated, you can go see if you can find a better offer somewhere else, these fools should be thankful or free the job for someone who would appreciate the opportunity.

Posted 06:39 AM, 11/08/2009

Billy Ray Winthorpe

You know, a whole lot of people have been down on their luck since this whole thing started. Take my pal Tommy, who hasn't been able to get to his longshoreman job. His wife Gina's going to have to support them both as best she can with her job at a local diner. As you can guess, the whole situation is straining their marriage. She thinks of just getting out sometimes, and Tommy's so desperate to show that he's helping their cause that he's even pawned his pride and joy, his guitar. I just hope it makes a difference to Willie Brown whether folks like that make it or not.

Posted 06:41 AM, 11/08/2009

ipaymytaxes

Willie should go back to his hot dog stand and stop terrorizing this city!

Posted 06:41 AM, 11/08/2009

wolfburn

willie brown is a moron

Posted 06:46 AM, 11/08/2009

FletcherT

After a couple of weeks of this, people will realize that SEPTA is pretty much obsolete, and thus the local mass transit system can be disbanded, the equipment sold, and the union workers can start flipping burgers in their new careers.

Posted 06:47 AM, 11/08/2009

Jean Valjean

Federal stimulus money is public welfare money. From my pocket, to Obama's to SEPTA, to the TWU, follow the money trail. TWU members share that welfare-entitlement mentality encouraged by politicians who need their votes. SEPTA should open their books so we can all see the flow of taxpayer money to TWU's pockets. Removing taxpayer money from the equation will end the confusion over SEPTA's health.

Posted 06:56 AM, 11/08/2009

mikedee

Yeah sure, he's out...he has a Comcast postgame show to do. What a piece of you know what this guy is.

Posted 07:04 AM, 11/08/2009

bigerik

"Between salary freeze, increased healthcare costs..., reduced 401k contributions, reduction in workforce, increase in workload" If this is a problem, guess you should have gotten a real job.....like a union job. AIG, goldman sacks, and others got bonuses with your tax dollars people, and you can't get over the fact that regular employees want whats coming to them. You're ALL pathetic, instead of crying about what other people are getting, worry about yourself. Or, go to school, learn a trade and get into your local union. We all know that babies will cry, but it's usually because babies want what they can't have!!! International Union of Operating Engineers 835. P.S. There are klenex coupons on coupons.com!

Posted 07:06 AM, 11/08/2009

Flyers-Losers for 35 years

FJG Jr is an idiot

Posted 07:09 AM, 11/08/2009

chrissmith

Public sector unions just shouldn't be allowed. Period. We're forgetting that this union is striking for TAXPAYER MONEY. SEPTA is a public agency! It's not a corporation.

Posted 07:10 AM, 11/08/2009

htown reader

these people need to be fired and replaced...they've had their chance, and chosen to be greedy....use the 7,000,000 to recruit and train replacements.