(The following story by Frederick Cusick appeared on the Philadelphia Inquirer website on March 27.)
PHILADELPHIA — SEPTA workers overwhelmingly approved a new one-year contract yesterday.
The vote was 1,787-479 in favor of the contract, said officials of Transit Workers Union Local 234, which represents operators, mechanics, custodians and building-trade workers.
Local 234 boss Jean Alexander, who negotiated the short-term deal with the transit agency, called the lopsided vote “a big win.”
“I’m very pleased the members have shown they appreciate what I did. It was a no-brainer to me and I expect to be back next year,” Alexander said.
SEPTA spokesman Richard Maloney said the agency’s board is expected to formally ratify the contract next month.
The deal averted what many feared would be a strike over SEPTA’s efforts to change union health benefits in order to reduce costs. The old contract expired at midnight March 14.
The contract keeps the health benefits where they are for the next year and also gives each of the 4,700 employes – who earn an average of $47,480 a year – a $1,000 bonus.
In the past, SEPTA contracts have usually been for three years. The unusual one-year deal is possible because SEPTA’s health-care costs are locked in at a low rate for the next 18 months. After that, rates are expected to skyrocket, and SEPTA is expected to again seek major health-care concessions from the union.
The contract allows SEPTA another year to improve its financial condition.
SEPTA is currently experiencing a budget crisis. This year, it had a $55 million deficit it was able to eliminate by taking extraordinary steps. In fiscal 2005, it projects a $70 million deficit.