Wednesday, July 27, 2011

Is It A Victory?

The federal judge hearing Metro’s challenge to the 2009 arbitration award on our contract has denied Metro’s demand that the award be set aside. He has ruled that the award is legal and should be implemented.

After reviewing all the material submitted to him by the union and management, he decided that it was affordable to Metro because it only increases labor costs by 1.76% per year over the four year term of the contract. Inflation during the last year has been close to 4% putting a big squeeze on our standard of living. Since January 1, 2008 to the end of June this year inflation has been approximately 7.5%. Since inflation is predicted to continue at a rate in excess of 3% for the next year, we will experience a significant loss of real wages during the contract period.

If the arbitration award is implemented as written, the average member who has been working since the contract expired on June 30,2008 would be due approximately $5,000 in back pay as well as a 9% wage increase. Metro challenged the award in court, not because it was beneficial to us, but because it did not take enough away from us. The elimination of health insurance for newly hired employees when they retire will save Metro over $1 billion in the future and the one year wage freeze will save them $48 million over the four years of the contract. Cost shifting on health insurance will save Metro several millions of dollars more over the course of the contract. Isn’t this enough?

The judge’s ruling will not stop Metro management‘s attacks on us. They have made safety the issue to justify their attacks. Management talks about the need for a safety culture. At the same time they have operators following unreasonable schedules, working mandatory overtime, using faulty equipment and, stressing them out over the threat of disciplinary actions. How can this be a safe environment?

What are we doing to fight back? Not much! The union leadership believes the award was a good one so therefore since it has been approved; there is nothing to fight over. On safety, they are telling us to be safe, if we want to avoid discipline. What needs to be done? First we need to understand what is going on and then we need a plan of action to deal with it.

The attack on us began when Metro took over from DC Transit in 1973. The local governments that set up Metro viewed the problem the private companies had as caused by wages and benefits that were excessive. Metro immediately launched an attack on our cost of living increases. The union struck to preserve them. We won that fight but the company extended the wage progression to two years and froze the wages of many unskilled workers.

In 1978, Metro came after the cost of living increase again. The union went on strike for 6 days. We held on to the increases in wages, but Metro was allowed to hire part time operators with no benefits. The union weathered the economic crisis of the early 80’s (10% unemployment and double digit inflation) without much damage because of Metro’s fear of a strike still haunted them.

The economic crisis of the early 90’s was the occasion for new attacks. The progression was extended from 3 to 8 years. Wages were frozen for everyone in 1992 and for those with less than 6 years of service in 1993 and in 1995 hundreds of drivers and mechanics were laid off.

As the new century began, there was an uptick in transit workers militancy. Strikes in Los Angeles, Philadelphia and New York helped us regain some of the loses of the 90’s. Real wages improved. Pensions and pension funding increased. A year was taken off the progression for operators and unskilled workers.

Then came 2008 and another economic crisis began. The union did not try to advance under attack. It retreated to the arbitration process. When the arbitrator took a pint of blood, Metro said they wanted two, and took us to court. The judge has now ruled that one pint is enough for now. Metro might appeal the judge’s ruling. Although unlikely since the judge has made a good case for how much money Metro is saving on it, and Metro knows there will be a walkout if they appeal the decision, we should be prepared if they do.

To reverse the loses we need a plan to shut the city down. We need pay raises that protect us against inflation and improve our standard of living, and we need health insurance for everyone when they retire. Strikes are the only effective way we have to protect our interests. The bosses know this and that is why they have made them illegal. We need to overcome our fears and prepare for battle.