Striking transit workers tell SEPTA: open up the books!

UPDATE—A settlement was announced early Nov. 8, with buses, trolleys and trains ready for the Monday morning rush hour. The contract offer was expected to be presented to the membership that day and a ratification vote is scheduled in a week and a half, according to Transport Workers Local 234 President Willie Brown. Specific details on the agreement were not announced.

TWU Local 234 President Willie Brown speaks at Nov. 4 press conference at the union hall. Photo: Kelly Valdez

After working for months without a contract, Transport Workers Local 234 hit the bricks at 3 a.m. on Nov. 3 to drive home their demands for decent wages, health care, workplace rights and fully funded pensions.

In late October the 5,100 transit workers took a vote that overwhelmingly authorized a strike, after the Southeastern Pennsylvania Transit Authority failed to budge on any union demands, as it has since March. Forcing a jump-start on stalled negotiations, the workers set the strike date for the start of the World Series baseball games scheduled in Philadelphia.

SEPTA management wanted a two-year wage freeze, a 400 percent increase in workers’ contributions to health care costs, and an end to various workplace rights. With threat of a strike looming, SEPTA revised its offer by removing any change in health care contributions and offering an 11 percent increase in wages over five years.

Management still wanted union members to start paying up to 3.5 percent of their income into their pension fund, essentially negating any wage increase. While area politicians, including Philadelphia Mayor Michael Nutter and Pennsylvania Governor Ed Rendell, praised SEPTA’s offer, Local 234 President Willie Brown noted: “If I give you three dollars and I immediately take away two—you’re left with one dollar. In the governor’s math you would still have three dollars.” (www.twu.org)

Brown criticized SEPTA for 20 years of mismanagement of the union’s pension fund. In 2009 SEPTA put in only 53 percent of the workers’ contracted pension amount. The fund also took a hit when stock values dropped from $729 million in June 2008 to $471 million in March. The fund rebounded to $640 million at the end of September.

Pensions are deferred wages, set aside now for workers to draw on in later years. Say the company agreed to put $100 into your fund, but deposited only $60. Wouldn’t you have a right to know what the company did with the other $40?

While nearly reaching a tentative agreement on day four of the strike, the union is still holding out for a forensic audit of the company’s pension fund. Unlike a standard audit, a forensic audit specifically tracks and collects evidence for investigation and prosecution of criminal acts such as embezzlement and fraud.

TWU Local 234 even offered to subject their contract to binding arbitration and return to work, under the condition that SEPTA submit to the forensic audit. Speaking on behalf of management, Governor Rendell firmly rejected the idea of binding arbitration while ignoring the audit request.

Could the pension money have gone to pay off the interest and principal on bonds that were floated for huge capital construction projects over the last 15 years? Paying off this enormous debt obligation would demand a considerable amount of cash. Opening up the company books to the workers might provide the answer and more. Brown even said, “We are willing to pay for a forensic audit. What are they afraid of?” (Philadelphia Inquirer, Nov. 7)

The union is also rejecting SEPTA’s request to revisit health care provisions in the contract if national health care legislation increases the agency’s cost.

Philadelphia city workers have also been working without contracts since the end of June, with Mayor Nutter threatening to cut health care and pension benefits. The outcome of the SEPTA strike could impact these negotiations.

Since 1975 this militant TWU local has gone out on strike nine times, demonstrating that they know what it takes to stand up to company pressure.