AC Transit: Labor decisions save $7M

Posted on August 1, 2011

Oakland, Calif.-based AC Transit's board of directors made decisions regarding three separate labor unions that will see the employees contribute 10 percent of the cost of their monthly medical and dental insurance premiums and receive one less paid holiday. The agreement will result in significant savings of almost $7.3 million through early 2014, according to AC Transit.

The three labor unions include: International Brotherhood of Electrical Workers (IBEW), Local 1245; the American Federation of State, County and Municipal Employees (AFSCME), Local 3916; and Unrepresented Employees.

AFSCME, Local 3916, represents approximately 200 managers, professionals, supervisors, paraprofessionals and administrative staff. Their Collective Bargaining Agreement will result in wage reductions of 5 percent through June 30, 2013 for a total savings to AC in the amount of $5,785,920 through March of 2014.

IBEW, Local 1245, represents approximately 25 Electricians, Electronic Technicians, and Heating, Ventilation and Air Conditioning specialists. The IBEW Collective Bargaining Agreement implements work schedule changes. Base wages will remain the same. The result of this agreement will be a total savings to the District of $667,800 through March of 2014.

Unrepresented employee wages will be cut by 3 percent, which in conjunction with a cancellation of a planned 2 percent increase last year will result in an equal 5 percent decrease in wages to that of AFSCME.

An agreement with the Amalgamated Transit Union, Local 192 was reached last year.

"These agreements provide much needed labor cost stability over the next two years for AC Transit," said Interim GM Mary King. "These savings along with the approval of a balanced biennial budget through June 30, 2013, leave the District at a point where we anticipate financial stability if no further outside revenue sources are cut."


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