Organized Labor in Transit Module 5, Lesson 3 Organized Labor in Transit

Unions in Transit Transit is historically a highly unionized industry. Public sector vs. private sector unions. Union contracts are highly diverse, reflecting long histories between the parties in each system. Union leadership elected by rank and file employees. Principal transit industry unions are the Amalgamated Transit Union, Transport Workers Union, United Transport Workers, and Teamsters. The National Labor Relations Act and National Labor Relations Board govern private sector unions; there is no comparable national authority for unions in the public sector. Typically, private unions have the right to strike; public unions are barred from striking. Union leaders are elected by their members. This creates challenges for management to work cooperatively and respectfully with union leaders, but also to be aware that union leaders are accountable to their members in a different way than management is accountable to a board of directors. The election process may periodically result in union leadership representing more radical or militant elements of the workforce.

Key Collective Bargaining Issues Wages Overtime and other premium pay provisions Seniority and work assignment practices Group insurance Other fringe benefits Part-time employees and full-time pay guarantees Retirement benefits Management rights; discipline and grievance rights Work rules Wage issues may include progression rates for new hires, two-tiered wage rates, cost-of-living adjustments, longevity pay added to base rate, shop classifications, etc. Overtime after 40 work hours in a week is national labor law, but many contracts also provide overtime after 8 work hours in a day; spread penalty; shift differentials; premium pay for work on holidays, etc. Seniority is central in the transit workplace – for choosing work, for choosing vacations, etc. It is a fundamental effect of the seniority system that the newest and least experienced drivers wind up doing the least desirable work with the least desirable schedule, days off, and vacations. The cost of health insurance has been a critical issue in union contract negotiations throughout the country focusing the parties on plan design and cost-sharing. In many ways, protecting health coverage has become a higher priority in contract negotiations than increasing wages. Other negotiated fringe benefits include paid vacation, sick leave, and bereavement leave, but also holidays, tuition reimbursement, uniforms, etc. Full-time vs. part-time workers; full-time typically guaranteed 8 hours per day and 40 hours per week with guaranteed pay when held over or called in; some experience with four 10-hour day assignments. Retirement benefits are also critical issues, especially the transition between conventional defined benefit pension plans (in which the employer bears risk for market downturns) and 401(k)-type savings plans (in which the employee bears risk), as well as medical coverage for retirees under age 65 and Medicare supplemental coverage for retirees over 65. Union contracts typically spell out management’s rights (e.g., to determine the number of employees, to issue reasonable rules and policies, to determine routes and schedules, etc.), as well as employees’ rights to grieve contractual violations or disciplinary action. Most contracts include a provision for binding arbitration to resolve grievances that cannot be settled between the parties. Use the Dash/Hock handout from the APTA CEO’s meeting as a resource for this session. Good discussion issue might be to compare and contrast the management rights clauses from different contracts.

Why Labor is Important to Management Labor costs represent 80% or more of operating budgets Union work rules affect efficiency and productivity Union political power 13(c) protections – 5333(c.) Right to strike vs. compulsory arbitration Grievance procedures Human connections to customers In recent years, the cost of fringe benefits such as health insurance and pensions has increased faster than wages and is a key issue in contract negotiations. Give some specific examples of work rules and their effect. Shop classifications restrict what work an employee may be assigned. The senior employee may not be the most proficient. Unions historically forged ties to elected politicians. Closed shop vs. right-to-work states. Section 13(c) of the Urban Mass Transportation Act of 1964 requires protection of employees’ collective bargaining rights. This is widely perceived to impact transit systems’ latitude to outsource operations. As noted earlier, private sector employees typically have the right to strike if negotiations for a new contract reach impasse. Public sector employees are typically barred from striking, so contracts are often settled through compulsory arbitration (called “interest” arbitration, as opposed to arbitration of grievances). A strike by public transit workers can have significant economic impact on the community, but arbitration effectively means a third party makes the critical decisions for a new contract. Use the Dash/Hock handout as a resource. The grievance process can be used if the union believes management failed to properly apply contractual provisions (e.g., an employee’s seniority was violated by assigning overtime to someone more junior). But the process is also used to protest disciplinary action (either to deny that discipline was warranted or to challenge whether the discipline was appropriate – e.g., does the punishment fit the crime?). The grievance process usually involves steps that elevate the issue to higher levels of management. When the parties cannot resolve a grievance, there is usually a provision that allows the union to invoke arbitration. It needs to be emphasized that the union can play an important role in minimizing grievances (for example, by counseling an employee that his/her behavior was improper and the discipline is appropriate). A union can disrupt the workplace by filing numerous petty grievances. On the other hand, management needs to understand that union officials are elected by their members and have a legal duty to effectively represent a grievant.

Trends and Key Issues Wage/benefit preservation vs. job security Health insurance Pensions and retirement benefits Introducing new technologies Outsourcing functions

Contributors David Lee, Connecticut Transit Barbara Gannon, Gannon Consult Barry Barker, Transit Authority of River Cities Joseph Niegoski, American Public Transportation Association Jill Hough, North Dakota State University