Archive for TWU
With money tight, has OPTO’s time come?
Posted by: | Comments
Throughout the world, major transit systems operate with just one person in charge of each train. In London and Hong Kong, Moscow and Paris, one-person train operation has become the norm. Using CCTVs and modern-day technology, one person is in charge of driving the trains, opening and closing the doors, making announcements and generally overseeing the trains. These systems run smoothly and have realized significant cost savings by cutting out a generally unnecessary employee from every train.
In New York, though, OPTO has had a tortured history defined by tensions between the MTA and the TWU. For years, the MTA has had the capacity to run OPTO routes. The L line has been OPTO-compliant since 2005, and with wider train control booths now in every train, nearly every other line could be converted into a one-person route. Yet, at every turn, it has become a major labor battle.
In 2008, Roger Toussaint nearly agreed to allow the MTA to move ahead with OPTO plans, and as late as May, Transit was moving ahead with OPTO plans. But two events put this off the table. First, the TWU’s rank-and-file nearly revolted. As a TWU Contract Bulletin from last year notes, many union members believed allowing OPTO to be the equivalent of “sell[ing] us all out.” Next, when the MTA and the TWU had to go to arbitration, the MTA withdrew its OPTO proposals. Much ink has been spilled over the “why” of it, but many consider that to be a mistake.
Now, the agency is going to try to eliminate conductors in order to save money. According to Pete Donohue of the Daily News, MTA officials have “quietly” asked transit leaders to reconsider their stance on one-person train operations. Neither the MTA nor the TWU heads commented for the article, but as the agency faces a potential $750 million shortfall, OPTO is clearly an idea whose time has come.
In an oversimplified world, OPTO, if implemented tomorrow and if the agency could fire all of its conductors, would save the authority approximately $170 million. I arrived at that figure by pulling the 2008 salaries from the Public Employees Payroll Database the state has established. The agency employees 3024 conductors, and all but 157 operate trains in revenue service.
That is, of course, not a completely accurate calculation. The MTA would have to pay its train drivers a few dollars more per hour to serve as the lone conductor/driver, and Transit would have to outfit it stations by moving the CCTVs currently in place in the center of platforms to the front of the trains. The one-time costs might be substantial, but the savings would be realized on an annual basis.
Even still, union members would object, and the MTA would probably have to overhaul their work rules. A very thorough comment left by a Transit employee on an August post about OPTO delves into the various problems with the current system and implementing one-person train control. Still, it authority owes it to its customers to try to cut costs via this path.
In the end, OPTO would simply give the MTA more flexibility. It could run shorter trains every ten minutes overnight at nearly cost to the agency as it now runs longer trains every twenty minutes, and this proposal would truly help spread the pain. In an editorial accompanying Donohue’s piece, the Daily News argued that the TWU should either give up its pay hike to save jobs or enjoy its raises while suffering through layoffs. It’s a devil’s choice for union leaders hellbent on saving every single job, but as the MTA sees its precariously financial state decline even further, it might be time once again for a push toward OPTO.
Bloomberg questions retirees’ free rides
Posted by: | CommentsIf New York City’s students won’t enjoy the benefits of free MetroCards, Mayor Bloomberg wants to know why retired transit workers should too. As Tom Namako reported earlier this week, Bloomberg, on his weekly radio show, questioned why retired TWU members get to enjoy the benefits of free transit for life at a cost of nearly $16 million annually to the MTA amidst a budget crunch for the authority. “I’m just pointing that out. It turns out that MTA is required to give the TWU retirees a free MetroCard once they begin receiving their pension payments,” he said.
Both MTA and TWU leaders downplayed the costs. A Metro-North official noted that most did not use their free passes during peak hours and said that the MTA “[doesn't] see it as a center of revenue loss.” John Samuelsen, head of the TWU, questioned the Mayor’s dollar figure. “We have retirees that live all over the county, like in Florida, and they certainly don’t ride the subway,” he said. “They worked their whole life in the transit system, and they earned those passes.” Considering how he campaigned on a platform of MTA reform, the Mayor, long silent on the MTA’s current financial crisis, is shooting blanks here.
TWU roundup: A legal fight, bus mirrors and dirty stations
Posted by: | Comments
I’ve been sitting on a few TWU-related stories over the past week, and none of them are long enough to warrant a separate post. So in the grand style of the link roundups we post periodically at River Ave. Blues, I present a TWU link roundup.
‘Pushy’ conductor wins legal fight
Our first story comes to us from Pete Donohue. He reports that the New York Court of Appeals ruled that a subway conductor who was accused of pushing a passenger after a heated exchange of words in 2006 cannot be fired. The MTA had initially tried to fire Jack Grissett after he fired a homophobic slur at a passenger and then, in Donohue’s words, “‘forcefully’ put his hands on the man.” At the time, an arbitration panel had recommended a two-month suspension without pay, and the Court determined that the arbitration ruling should stand and that the MTA owes Grissett backpay as well. The MTA had won at both the Supreme Court and Appellate level.
While Donohue and his sources portray this to be an example of wasteful MTA expenditures on legal fees, I have a different take on it. It reaches more to the power of the unions and the MTA’s inability to fire its employees acts most workplaces would not tolerates. As PSAs throughout the system remind us, if a rider assaults an MTA employee, the penalty could be up to seven years in jail. Yet, if an MTA employee is found to be guilty of similar behavior, a two-month suspension is a sufficient punishment.
Bus mirrors inadequate, says drivers
According to a Heather Haddon report in amNew York, a few express bus drivers say that replacement mirrors are inadequate and could put pedestrians at risk. Union leaders claim that the MTA’s decision to replace broken mirrors with “a more affordable model” is a flawed one because the mirrors do not allow drivers to see people on the streets or those running for the bus. While Transit officials say the mirrors “meet or exceed” safety specifications, one bus depot in Brooklyn fielded 20 complaints last month alone.
With funds tight, station cleaning shifts go unfilled
For the last few years, the MTA has threatened to eliminate station cleaning crews as a way of saving money. The current setup, Transit officials have claimed, is an inefficient use of manpower. Now, TWU leaders say that cleaning shifts are going unfilled. According to another Heather Haddon article, Transit has let cleaning shifts go unfilled when workers call in sick. She writes, “On a Monday earlier this month, 138 cleaning shifts had vacancies, with less than a fifth of them getting filled through overtime, according to transit documents.”
For the MTA, this is one way to save on overtime pay, but for the rest of us, we’re left with stations dirtier and grimier than usual. Meanwhile, despite promises from MTA heads to improve station cleanliness, the agency plans to save $6 million by eliminating 83 cleaners this year. Perhaps those naming rights deals should resemble Adopt-a-Station plans instead with the money going toward cleaning efforts.
MTA to appeal year three of TWU arbitration award
Posted by: | CommentsAccording to the Daily News, the MTA is giving up on part of its appeal of the TWU arbitration award while keeping another part of it — the third year of raises — alive. Pete Donohue reports that the MTA will honor two-thirds of the arbitration award, and TWU workers will now enjoy a retroactive four percent raise for 2009 and a four percent raise in 2010. The agency, however, will seek to have an appeals court overturn the third year of raises which guarantee a 3.5 percent increase in 2011. The agency will also seek to quash part of the award that lowers employee contributions to health care and raises the MTA’s obligations. According to Donohue, this decision to pay will cost the agency approximately $100 million this year.
As expected, labor union leaders were none too pleased with this development. John Samuelsen contined to bluster about this appeal and said that workers, who are getting eight percent in raises in a bad economy and at a time when few private-sector employees are enjoying raises, aren’t happy with the news. Still, if MTA Chair and CEO Jay Walder is serious about cutting costs, addressing the MTA’s rising tide of labor and pension obligations must be a part of that effort. The workers won’t like it, but the agency will continue to be hindered by those costs without some sort of compensation reform. More on that later.
Samuelsen, TWU to fight any layoffs
Posted by: | CommentsAs the MTA gears up to consider service cuts across the board, they will inevitably look to reduce staffing levels at all levels. Already, MTA CEO and Chairman Jay Walder has pledged to trim some of the management fat, and he may look to ask the transit agencies’ various unions to suffer through employee cuts as well. The TWU’s new leadership, though, has pledged to fight any layoffs. New president John Samuelsen has appointed his rival Curtis Tate to head up the TWU’s political action committee, and he vowed to unite a fractured union in the face of potential job losses. “Infighting has crippled us,” Samuelsen said to the Daily News. “I’m looking to unify the union and get ready to face off against the MTA and the threat of layoffs.”
This is, of course, a not unexpected result. After all, one of the union’s main roles is to defend its workers’ job. but it’s a rather confrontational one this early in the process. The MTA’s deficit is coming about, in part, because of guaranteed union raises over the next three years, and the agency is going to be cutting services — from subway and bus lines to personnel and everything in between — across the board. If the TWU is fighting, in the face of public discontent over service cuts, for every job, the average straphanger may not be too sympathetic to the union’s plight and will probably side with no one.
One day, the MTA and TWU will have to resolve their differences and come together for the best interests of both sides. A broke MTA won’t be able to pay its workers, and a union willing to fight to the death at every mention of bad news will find it tough to win allies.
MTA holding up arbitrator Zuccotti’s union donation
Posted by: | CommentsWhen former MTA CEO and Executive Director Elliot Sander opted to head to arbitration with the TWU, apparently, he agreed via handshake to donate John Zuccotti’s salary to the TWU’s Widows and Orphans Fund. This revelation — a clear conflict of interests — did not come to light until after Zuccotti sided with the union in the arbitration dispute, and now, the MTA is holding up payment of the donation. According to Pete Donohue, new MTA CEO and Chair Jay Walder and the rest of the authority’s board have asked MTA Inspector General Barry Kluger to review the circumstances surrounding this handshake agreement.
I’m not really sure what recourse the MTA has here. There is a clear ethics issue here, and Zuccotti, a senior counsel at Weil, Gotshal, should have recognized that before proposing this deal with Sander. Yet, the MTA may not have much of a choice and could instead just be further antagonizing the TWU over something the current leadership cannot control. As always, stay tuned.
Walder eyes overtime, jobs as ways to save
Posted by: | Comments
One of the strangest realities about the looming MTA financial crisis relates to wages. Non-union employees at the MTA — including everyone in a management position — is currently slated for a 10 percent wage reduction while all union members are going to enjoy three straight years of raises. Chew on that one as the MTA prepares to cut its student MetroCard program.
Jay Walder, the authority’s CEO and Chairman, as well as the MTA Board representatives are well aware of this discrepancy between the MTA’s economic reality and the new labor contract. Their hands, for now, are mostly tied, but Walder is going to examine carefully the MTA’s payroll as he looks to avert potentially disastrous service cuts.
According to The Post, Walder is going after overtime. Currently, the MTA spends more than $500 million a year on overtime, and Walder sees this, rightfully so, as wasteful spending. “We need to take the place apart,” he said, referring to the need to change the culture at the MTA from management on down to the rank-and-file. He expects to layoff approximately 700 employees, and rampant overtime will be curtailed.
Still, other Board members took a more aggressive tone yesterday. Tom Namako reports on one:
Board member Nancy Shevell set her sights on the transit union, saying this year’s fare hikes will end up funding TWU Local 100’s “unrealistic” 11 percent raises over the next three years. “Where did the fare increase go? Where did that money go?” she said. “So much of it is going to our union members and the unrealistic work rules and unrealistic increases they’ve received.
“It is really unfair that one large group is not going to be affected by the economic downturn and another large group — for example, our youth and our disabled and working people — are having to pay the price,” she said.
In response, John Samuelsen did what he seems to do best: He defended his union raises at the worst time possible. “It’s easy to talk about taking a pay cut when you’re making a few hundred thousand a year,” he said of the MTA’s looming non-union paycut. I wonder if Samuelsen is losing the war by winning this battle though. Now isn’t the time to be too vocal in support of a pay raise.
In the end, though, the union raises fall at the feet of the MTA as much as they do the arbitrators who sided with the TWU. Norman Brown, a non-voting Board member who serves the MTA as one of labor’s representatives, chided the former MTA leaders — Lee Sander and Dale Hemmerdinger — for punting on the labor negotiations. He urged the MTA to keep negotiations in the future in-house and avoid arbitration. The union is willing to work with MTA leadership to reach solutions acceptable to both sides, and by involving outside parties, Brown argued, the MTA runs the risk of drawing arbitrators who are not familiar with the way the MTA’s finances work or the way the transit system is run.
Brown, of course, is right. In the end, the arbitrators sided with the TWU in an all-or-nothing hearing because that’s what the city’s other unions have received lately. Never mind that the MTA is a state authority or that it financial ability to pay is not tied directly to tax rates as the city’s is. The arbitration was the death knell here.
Now, though, it’s time for the two sides to work together to solve their differences. The MTA can’t afford increasing costs, and the union members can’t afford to see their employer, the people who sign the checks, stumble toward bankruptcy. Something, from both sides, has to give.
Wage increases to cost MTA $100 million after judge backs TWU in appeal
Posted by: | Comments
A New York State Court judge has backed the Transport Workers Union of American, Local 100 in its fight against the MTA to secure its binding arbitration award. In a ruling issued late Friday, Judge O. Peter Sherwood declined to grant the MTA an injunction against the arbitration award that guaranteed TWU workers 11 percent in wage raises over the next three years.
Noting that the court has “limited authority in this case,” Sherwood upheld the arbitration award on the grounds the arbitrators’ decision was “plausible or had a plausible basis” in reality. As long as the award criteria were “considered in good faith” and not unconscionable, the judge could not vacate the TWU’s victory. In plain English, basically, Sherwood noted that unless the arbitrators did not follow the rule of the law and were not unreasonable in explaining their decision, he would have to uphold the ruling.
As Sherwood noted, the arbitration panel followed the Taylor Law’s six criteria in determining the arbitration award. Since the arbitration decision was not “affected by misconduct, bias or procedural defects,” Sherwood upheld the award. “Although the [MTA] disagrees with the [arbitration panel] Majority’s analysis of MTA finances, it has not shown that the findings of the Majority are not supported by substantial evidence and do not have a plausible basis,” he wrote. (The full decision is embedded after the jump and available here as a PDF.)
In response to this decision, the MTA, which will soon announce a salary reduction for all non-union employees and substantial cuts to transit service across the city, decried the economic impact of this ruling. According to the authority, this court-mandated pay increase will add $100 million to the agency’s bottom line in 2010 and another $200 million in 2011.
“Last night the MTA learned that our appeal of the TWU Local 100 arbitration award was unsuccessful. We are extremely disappointed by this decision, which will force the MTA to pay wage increases that are inconsistent with the economic crisis in New York,” the authority said in a statement issued Saturday. “The ruling will have severe financial impacts on the MTA budget, coming on the heels of a State budget cut and reduction in payroll tax proceeds.”
The agency also fired the first salvo in what promises to be a bitter war of words between them and the TWU workers. In no uncertain terms, the MTA noted that the arbitration award may guarantee more money for union workers but will come at a high public cost. “We are working through the weekend to incorporate this news into the balanced 2010 budget that must be presented on Monday to the Finance Committee of the MTA Board,” the statement said. “Unfortunately, the magnitude of these changes makes it increasingly difficult to limit the impact this budget will have on the MTA, our employees and customers.”
For its part, the TWU offered up a more conciliatory tone. “The MTA has had their day in court and the judge ruled against them,” John Samuelsen, the new head of Local 100, said. “Now it’s time for them to stop wasting more of the taxpayers’ hard-earned dollars on lawyers’ fees and honor our lawfully obtained contract. I cannot think of a better way for the MTA to start this new labor/management relationship off on the right foot then to release our wage increases.”
Interestingly, Judge Sherwood himself questioned the economic wisdom of the arbitration award, but he was bound by law to uphold the decision. “In the current economic environment, the award of wage and benefits increases over three years of approximately 11.5 percent is a rich package but it is not unique. Were the court assigned direct responsibility for applying the criteria set forth in the Taylor Law to the package of economic benefits demanded by the union, the court might weigh them differently than did the Majority in this instance,” he said.
In the end, the MTA will have to find another $100 million it doesn’t have to institute a four-percent wage increase for thousands of TWU members across the city. Although the agency continues to maintain that it will not raise fares in 2010, the sweeping service cuts needed to cover this even greater gap would utterly cripple the system. I don’t see how, with the appropriations cutbacks, the payroll tax short fall and this arbitration ruling, a fare hike can be avoided.
As of now, the authority does not know if it will appeal the state court’s ruling.
Click through for the full opinion from Judge Sherwood or access it here as a PDF. Read More→
TWU Updates: New leadership; a whistleblower injury
Posted by: | CommentsThe Local 100 branch of the Transport Workers Union has elected John Samuelsen to take over the union presidency from Roger Toussaint, according to the Daily News. Samuelsen was running against acting president Curtis Tate on a platform of more direct opposition to the MTA. He is an outspoken critic of the MTA’s appeal of the TWU arbitration award and has spoken of more “direct action” against the agency if the two sides cannot come to an acceptable compromise. As the MTA’s finances worse, Samuelsen will become a major player over the next few months and years.
In other TWU news, Juan De Los Santos, the union member who tipped off the MTA Inspector General to the problem of idle workers, claims he was shoved off a platform and onto an active track in retaliation for his whistleblowing. The NYPD is currently investigating, but one “police source” told Pete Donohue that De Los Santos may have simply tripped. The discussion on Subchat amongst some union members is decided mixed here.
Facing tough times, transit unions come under fire
Posted by: | Comments
Over the last few months, the MTA’s generally tenuous relationship with its union workers — and in particular, the Transport Workers Union — has become strained, and it’s starting to fray. The trouble started when an arbitration panel awarded the TWU 11 percent in raises over the next three years, and although the process was called “binding arbitration,” the MTA could legally appeal the decision on certain grounds. When the agency opted for this path, labor peace started to deteriorate, and things are slowly coming to a head.
We start first with a non-TWU story and with a follow up to last week’s tragic accident that left a pedestrian dead after getting struck by a bus while he was cross the street. On Tuesday, I reported that this bus driver had been suspended for texting behind the wheel. Protests by the Amalgamated Transit Union, though, led to a simple suspension.
Yesterday, the Daily News added a shocking twist to this sad story. The driver had been posting nasty notes about passengers on his Facebook page. According to the report, these notes were about “killing, committing suicide and beating people.” Now, the MTA Inspector General Barry Kluger has initiated a probe to find out why Transit did not initiate a psychological evaluation of Jeremy Philhower and why the agency faced such fierce resistance when they it tried to dismiss this driver. This accident — seemingly avoidable — should lead to a change in the way these cases are handled by both the unions and the MTA.
Next, we arrive at an Op-Ed by Nicole Gelinas of the Manhattan Institute. She takes the MTA to task for its role the TWU arbitration process:
Arbitration likely was a ruse, although we don’t know for sure. We can guess that neither Gov. Paterson nor the MTA thought that awarding huge raises would fly publicly, especially when the MTA needed a multibillion-dollar bailout.
But nobody wanted to annoy the TWU. It seems likely that the arbitrators were brought in to insulate the pols from public anger. Just two weeks ago, Paterson maintained this fiction, saying that, though “we don’t have the money,” the arbitrators “probably made the correct ruling technically.”
And the MTA wasn’t exactly careful, on behalf of the taxpayers, to assure a pristine process. It was almost unbelievably outrageous, as we learned long after the fact, that the “indepen dent” arbitrator on the three-man panel — former Deputy Mayor John Zuccotti, who represented the public — agreed, with the MTA’s support, to fork over his $116,000 “fee” to a TWU-controlled charity.
That is, the MTA used a supposedly independent process to wash a payment back to its “adversary” in the arbitration.
Gelinas calls for the state legislature to fix the way the MTA negotiates with its unions. She wants to see an end to what she terms “backroom deals,” and she wants the authority, going through some lean economic times, to be able to exert pressure on the unions to get more out of their workers. The politics of Gelinas’ Manhattan Institute may be more to the right than those of many New Yorkers, but she raises some questions here for the MTA that need to be aired.
Finally, with the MTA Board set to meet next Wednesday, the TWU will host another Day of Outrage protest in front of MTA headquarters. Meanwhile, the Union has appealed to the U.N.’s International Labor Organization in an effort to get New York State’s anti-strike Taylor Law repealed. Although the United Nation’s labor commission has no binding authority over New York state law, a statement against the Taylor could, in the words of one labor expert, “influence decisions by local lawmakers.”
I get the sense that, if the law allowed them to do so, the city’s transit unions would be on the verge of a strike. As the MTA’s appeal continues, as cost-cutting measures come into play, these labor wars will only grow more acrimonious.





