No SEPTA strike this week, says union president, but it could come soon

SEPTA's union president Willie Brown ensured that there will be no immediate strike — meaning buses, subways and trolleys will continue to run as normally planned. But he was clear: If SEPTA management doesn't make concessions on pensions this week, his TWU Local 234 union is prepared to walk off the job.

Brown said he'll meet with SEPTA officials throughout this week and won't make a decision on a strike until as early as Thursday — but gave an indication that he wouldn't strike until at least Monday.

"There will be no strike in the immediate future. I can't promise anything beyond this week," said Brown at a press conference at the TWU Local 234 union hall in Northern Liberties. "At the end of the week, I'll evaluate where we are and make a determination on whether or not to strike."

He promised to give riders 24 hours notice of a strike.

TWU Local 234 is SEPTA's largest union, and on Sunday it unanimously voted to authorize a strike. Any strike would shutter buses, subways and trolleys. The regional rail trains would still run because they are governed by different unions that recently signed a new contract.

When asked how far apart the two sides are, Brown said: "California and Pennsylvania."

The sticking point is pensions. Brown calls them unfair, claiming that: "Our members put three times as much into the pension as management, but management gets three times as much out as our members."

"We can't live on that anymore," he said.

SEPTA, however, issued a statement reminding the public that "defined benefit pension plans are disappearing" in favor of 401(k) plans. The transit authority also said the current pension structure was agreed upon in previous contracts. It also offered a calculation of its own:

"When considering Social Security and pension benefits, a typical TWU retiree has an income replacement ratio of 78 percent, whereas a typical [SEPTA management] retiree's ratio is 75 percent. Any difference between TWU and management pension contribution percentages, are directly attributable to the pension enhancements TWU previously negotiated at the bargaining table."

When Brown was asked to identify businesses where rank-and-file employees get the same benefits as management, Brown balked.

"I'm not asking for the same benefit as management but don't tell me that you think it's correct that if I put $1,700 into a pension and you put $1,700 [per year] into a pension, that you get almost $9,000 out [per month] and I get $2,500 out," he said.

Another sticking point is the length of a new contract. Brown said his members want a short-term deal so they'll have a better understanding of the implications of how the Affordable Care Act will affect their health benefits. SEPTA wants a five-year deal, he said.

He also said that negotiations are going backward.

"Back in June there was a two year offer with a 5 percent increase in wages on the table, now authority is at a 5-year deal with 6 percent raise."

Brown even accused SEPTA management of "following the trend around the country" to break unions.

"This is not about economics as past contracts have been," Brown said. "This is about egos."

Source: Philadelphia Business Journal