|
United Transportation Union |
The United Transportation Union (UTU) Local 23 is the Union that represents our 160 Bus Operators.
UTU Employees at METRO
Four Years Ago |
Current |
|
| Number of employees represented | 175 |
160 |
| Average hourly salary | $18.81 |
$23.73 |
| Average Annual Salary | $39,125 |
$50,376 |
Over this four year period, wages for METRO bus operators have increased 28.8%, while service has been cut (less drivers) and fares have been raised over 50%. Over this same period of time the Consumer Price Index (CPI) for the Bay Area has been 5.4%.
Recently, UTU has put out some information to the public and in the media that misrepresents much of what is in dispute. Santa Cruz METRO wants to take this opportunity to respond to these assertions being made.
1. UTU has said “Bus Operators are not interested in striking” –
| METRO does not want a strike. METRO knows that a strike would be devastating to its passengers. METRO does not have the ability to pay the demands of the UTU represented employees. METRO’s current year’s operating budget has a $1.4 million deficit. Reserve funds are being used to shore up the operating budget. METRO revenues are not keeping up with the growth in expenses, and this year METRO is unable to offer economic gains to the unions. METRO Bus Operators received a 4.25% / 4.25% / 4.25% raise in the past three years and a sixth step (5%) last year. In the 2004/05 fiscal year, while METRO was cutting service and raising fares, the majority of METRO Bus Operators got 9.25% raises! METRO Bus Operators are the 4th Highest Paid Bus Operators in the nation, and the highest paid (by over $3 per hour) for a community the size of Santa Cruz. (source: Full-Time Bus Operators’ Top Hourly Wage Rates June 2005 – Transit Systems Throughout the United States – John A. Dash & Associates) |
2. UTU has said “Bus operators are concerned about the passengers and providing safe service to our community” –
| METRO is also concerned about its passengers and the provision of safe service to the community. If the Bus Operators are concerned about the passengers and providing safe service to our community, they would be willing to work with METRO to address these budget shortfalls, including the problem with their health insurance premiums. As the 4th Highest Paid Bus Operators in the Nation, METRO feels that drivers than fairly compensated for the work they provide. |
3. UTU has said “The Transit District is trying to bust the Driver’s Union, they are forcing us to strike” –
| METRO does not want a strike. The Drivers Union (UTU) made a calculated decision five years ago regarding their health insurance premiums that benefited single drivers that is now a detriment to drivers with families. Now they want METRO to make up for their mistake. METRO currently pays $998,250 for medical insurance for the 160 UTU drivers. To meet UTU’s demand to fully pay for medical premiums would add an additional $1.5 million over the next three years – funds that METRO does not have. METRO is willing to work with the Union to make changes in their contract to help them get the money to pay for their health insurance. These changes would affect a small number of drivers, and would bring their contract in line with other transit systems the size of METRO. UTU has not expressed a willingness to change its contract terms to free up funds that could be used to pay for increased healthcare costs. |
4. UTU has said “We are trying to get a fair contract and maintain health benefits” –
| METRO has historically given very generous wages and benefits to UTU drivers. That is why they are the 4 th highest paid drivers in the nation, and their contract includes benefits such as a paid union representative, non-mandatory overtime only, and very generous paid leaves. Moreover, the drivers received a 4.25% raise last year and for most drivers an additional step increase of 5%, a total of 9.25%. METRO is not proposing to take away any wages or benefits from the drivers. Rather it is proposing to trade some benefits for others. With the METRO operating at a deficit, METRO’s proposals are fair and reasonable. |
5. UTU has said “The Transit District is trying to work the Drivers longer hours each day with no pay and in some cases reduced pay” –
| The UTU contract has numerous work rules that limit the manner in which driver’s schedules can be created, resulting in higher costs to METRO. METRO believes that operational efficiencies can be realized within the proposed changes without significantly changing the work schedules of many drivers. Moreover, the METRO has committed to give ALL the savings realized by these schedule changes to the Drivers to pay for their medical insurance costs! |
6. UTU has said “Newly hired workers will not get the same benefits for their families as current workers have” –
| METRO is not proposing any contract changes that would result in different benefits for new workers. |
7. UTU has said “Managements wants bus operators to take a pay cut to balance their budget but won’t take one for themselves” –
| METRO is NOT proposing a pay cut for drivers. METRO is NOT proposing that any money come from the UTU contract to balance METRO’s budget deficit. UTU bus drivers are the 4th highest paid in the nation, while METRO management is nowhere near the 4th highest paid in the nation, nor even close to the salaries earned by other San Francisco Bay Area transit agencies. |
8. UTU has said The Bus Operators of Santa Cruz METRO hope our passengers will support us and understand our concerns about our jobs” -
| METRO drivers rightfully take pride in the great service they provide to the public. METRO knows that its passengers have experienced substantial fare increases and service cuts in the recent past. METRO hopes that its passengers will support METRO’s commitment to not further increase its operating expenditures beyond its ability to pay. |
One fact that has been omitted from UTU's public information is that according to the Dash Survey of Bus Operator Wages, June 2005, Santa Cruz METRO Bus Operators are the 4th highest paid in the United States. The only bus systems that make more than our drivers are San Francisco, San Jose and Boston. METRO drivers make more than New York City Transit drivers as well as Chicago and Los Angeles. For bus systems the same size as Santa Cruz (up to 250,000 population), our drivers are the highest paid in the United States. The drivers in the next closest system in the salary survey make $3.80 less per hour.
The highest paid drivers at Santa Cruz METRO make $24.80 per hour. This means that a driver can earn $50,376. Because of available overtime and a labor agreement that contains many rich benefits, drivers can increase their earnings significantly above that level.
The above chart shows the 2004 W2 wages for our bus operators. 32% of the Bus Operators made $5,000 above the highest rate, and 17% made $10,000 higher. Five drivers exceeded the highest rate by $25,000, for a total rate of over $75,000 per year!
PAID LEAVE:
METRO provides a generous package of Sick, Vacation and Holiday Leave that exceeds the average of all local public agencies. In addition, METRO employees can cash out Sick and Annual Leave.
| LOCAL AGENCY | 1st Year |
6th Year |
11th Year |
16th Year |
Max | Cash Out | Cash Out |
|
Paid Leave Days |
Paid Leave Days |
Paid Leave Days |
Paid Leave Days |
Paid Leave Days | Sick Leave | Vacation |
City of Capitola |
39 |
41 |
46 |
46 |
54 (20+ years) |
None for employees hired after 1998 1 | Paid out annually if accruals exceed 504 hours |
City of Scotts Valley |
37 |
44 |
44 |
48 |
47 |
Upon separation of employment | Up to 80 hours after 15 years |
City of Watsonville |
40 |
38.5 |
43.5 |
48.5 |
48 |
50% of value after 1,000 hours | Excess paid at separation |
City of Santa Cruz |
35 |
36 |
40 |
41 |
50 |
33% of value to cash or vacation 2 | Stop accruing when 2 times annual rate reached 3 |
County of Santa Cruz |
33.5 |
42 |
47 |
48 |
48.5 |
Sick and vacation together. Stops accruing -------> | when 2.5 times annual rate is reached. Paid at separation |
|
|
|
|
|
|||
UTU - METRO |
33 |
41 |
42 |
49 |
51 (17 years) |
Can transfer to vacation 100% value. No accrual limit. | Cash out of accruals greater than 2 times annual rate. |
Notes:
1 Capitola allows employees with 10 years of service to cash out sick based on a schedule. This option will be eliminated in 2007.
2 The City of Santa Cruz allows sick leave over 400 hours to be converted at the rate of 33% to cash or vacation. Cash conversion can occur annually or at time of separation.
3 The City of Santa Cruz allows employees with 5 years of service to cash-out up to 40 hours of vacation annually (as long as the vacation balance remaining is 40+ hours.
2006 EMPLOYEE COSTS FOR MEDICAL
(HMO Level)
Plan |
Employee Only |
Employee +1 |
Family |
|
| Capitola | PERS | $ -0- 1 |
$ 270.971 |
$526.291 |
| Watsonville | Self-Insured | $193.002 |
$193.002 |
$193.002 |
| Scotts Valley | PERS | $ -0- 3 |
$ -0-3 |
$ -0-3 |
| SC City | PERS | $158.684 |
$268.934 |
$335.104 |
| SC County | PERS | $127.655 |
$250.445 |
$325.575 |
| METRO/UTU (current) | PERS | $ -0- |
$ 179.92 |
$ 413.90 |
| METRO/UTU (proposed) | PERS | $ 41.05 |
$ 82.09 |
$106.72 |
Notes:
1 Capitola provides its employees with $580 to spend on medical, dental and vision premium costs. Employee plus 1 and Families have to pay in addition to the costs shown for dental and vision coverage.
2 The rate shown for Watsonville is the premium cost for medical, dental and vision.
3 Scotts Valley currently pays the HMO level costs, but their contract is up for renegotiation at the end of November and they are expected to seek employee participation in the rates.
4 City of Santa Cruz - Cost as of 2006 when the current one-time funds are depleted. Currently there is no employee cost for medical premiums.
5 County of Santa Cruz - The rates shown are the 2006 PERS rates less the amount paid by the County in the current contract. Their contract is up in September of this year.
RETIREE BENEFITS :
METRO provides for retiree medical insurance for all of its employees and their families. Any employee that reaches retirement age, no matter how long they have been employed at Santa Cruz METRO, can retire with full retiree medical coverage. Again the chart below shows what other public agencies provide. Again, METRO is a leader in providing this benefit to our employees, but our ability to do this is limited by the deficit.
2006 RETIREE COSTS FOR MEDICAL
(HMO LEVEL)
| LOCAL AGENCY | Carrier |
Employee Only |
Employee Plus One |
Family |
City of Capitola |
PERS |
$ 389.96 1 |
$ 850.97 1 |
$ 1,106.27 1 |
City of Watsonville |
Self-Insured |
$ 1,114.50 2 |
$ 1,114.50 2 |
$ 1,114.50 2 |
City of Scotts Valley |
PERS |
2 |
2 |
2 |
City of Santa Cruz |
PERS |
$ 336.50 3 |
$ 761.97 3 |
$ 1,017.27 3 |
County of Santa Cruz |
PERS |
$ 128.50 |
$ 503.97 |
$ 703.27 |
|
|
|
|
|
UTU - METRO |
PERS |
$ -0- |
$ 179.92 |
$ 413.90 |
Notes:
1 Capitola only pays the administrative costs associated with participation in CalPERS.
2 The City of Scotts Valley and Watsonville .
3 The City of Santa Cruz only pays administrative costs associated with participation in CalPERS and an additional $89 towards premium for retirees with 10 years of service and 55 years old until eligible for medicare.
In April of 2002, METRO was facing a large deficit and was exploring ways to reduce operating costs. Both unions approached METRO and stated that if METRO were to increase the retirement benefit from 2% at 55 to 2.5% at 55, they could convince enough employees to retire to offset any layoffs. Since there was an existing cap on the Employer’s share of retirement costs, the full cost of this retirement enhancement of 2.5% at 55 would be paid for by the employees. Based upon this, METRO allowed an election for this increase benefit to occur. The employees overwhelmingly voted for the increased benefit with the understanding that they would have to pay the increased costs. In fact, the information provided to the employees at that time showed that the cost would increase in the out years.
To evidence their intent to pay for the increased costs of this benefit, on April 19, 2002, UTU sent a letter to the METRO Board of Directors in which they stated:
At that time, METRO could not have afforded this pension increase unless the amount paid by METRO was capped, and only agreed to implement the benefit when UTU made these assurances that they would pay for any amounts above the METRO cap. Now, UTU has informed METRO in a letter dated August 4, 2005, that they will no longer hold up their part of the agreement and they are no longer willing to pay for their pension increase. This tactic apparently is meant to interfere with the current negotiations, as it has been brought up for the first time after the conclusion of four months of negotiations. METRO has proposed a fair and equitable contract to UTU. METRO's responsibility to the taxpayers to manage the agency in an economically responsible manner will not be swayed by UTU's expressed intent to renege on their prior commitment.