SEPTA and union still far apart in contract talks, says source

Despite reports earlier this week that SEPTA and it's largest union are making strides toward signing a new contract, a source close to the negotiations said the two sides are still far apart — meaning that the possibility of a strike is very much on the table.

In fact, SEPTA appears to have dug in with regard to the length of a new deal, the source said. The union wants a two-year contract so it can better assess how the Affordable Care Act will affect their health insurance plans. SEPTA wants a five-year deal partly so it doesn't have to go through another long contract negotiation so soon. The source said that SEPTA has offered a 6 percent raise over five years, but months ago offered a two-year deal with a 5 percent raise.

TWU Local 234 Union President Willie Brown said last week that he'll use Thursday and Friday of this week to determine if the union would go on strike — shuttering buses, subways and trolleys. (The regional rail trains would still run because they are governed by different unions that recently signed a new contract.) Brown promised to give at least 24 hours notice of a work stoppage.

Last Sunday, the union unanimously voted to authorize a strike.

Another sticking point is pensions. Brown says that SEPTA management employees get much higher pension benefits upon retirement than union workers. SEPTA, however, noted last week that the current pension structure was agreed upon in previous contracts, and reminded the public that pensions are disappearing in favor of 401(k) plans.

Source: Philadelphia Business Journal