SEPTA Strike Ends: What was the deal?

The six-day stoppage of mass transit in Philadelphia is over, as SEPTA and the state reach an agreement with the leadership of the Transit Workers Union Local 234.
 
Writers note: I have been hearing people ask for some explanation and background on the agreement that was reached between SEPTA and Transit Workers, in the absence of press focusing on the terms of the agreement. Throughout this strike we have seen the mainstream press focus on dividing the ridership from the drivers, while leaving SEPTA, the Mayor and the Governor unquestioned. One thing the strike made clear for us at MMP is the need for an independent media that gets the story right, and writes with the greater interests of people in mind. If you liked the coverage and want to support more in the future, please consider donating.
 
The 5,000 drivers and engineers that make up the union still need to vote to ratify the agreement, which would mean a settlement on a contract that expired last March.
 
The underfunding of pensions was the major reason union leaders cited for the decision to strike. While SEPTA management's pensions are funded at 72%, drivers and engineer's pensions are currently funded at only 52%. "The last thing we want to do is wake up… one morning twenty years down the road and our pension is gone," TWU Local President Willie Brown stated on the second day of the strike. The solution presented in the proposed contract agreement is an increase in the amount drivers and engineers pay into the fund, rather than parity with management. The transit workers are left to make up the difference, paying between 2% and 3% into their own pension fund.
 
Talks between union leaders and Gov. Rendell supposedly broke this weekend, when Rendell threatened to withdraw $7 million in state funding toward bonuses for the workers. However, talks resumed today with an agreement in the early morning hours, leaving that funding still on the table. The $7 million will be used to pay each worker $1250 instead of increases their wages during the first year of the contract. Effectively, Rendell used the $1250 bonus offer to force negotiations and push salary gains years away, a situation that makes the 11.5% wage increase in the last 4 years amount to less in real gains for the workers. With the prediction of an economic recovery that has continued job losses and inflation, the move to offer the increases toward the end of the contract amounts to less in real wages down the road.
 
Much of Philadelphia was challenged throughout the duration of the strike, facing difficulties in getting to work and school, heavy traffic and high costs of alternate forms of commuting. While calling a strike at 3 a.m. after the last home game of the World Series did create inconvenience, when workers have the right to strike for decent wages and working conditions, they help set a better standard for everyone. With negotiations underway for teachers, police, firefighters, and city employees who are staying on the job without a contract, TWU's stance may directly benefit tens of thousands of other workers in our city.
For more information and some good reporting on the negotiations read Dan Denvir's recent piece from In These Times wrapping up the strike.

From flickr.com/photos/transportworkersunion/