Omnitrans and Union Leadership Reach Labor Agreement
Bus Drivers to Vote on New Contract; All Routes Remain at Full Service
SAN BERNARDINO, CA - Omnitrans service is expected to continue without interruption after Omnitrans and the bus drivers’ Amalgamated Transport Union (ATU) reached a $65 million tentative agreement late Wednesday, averting a walk-out by drivers.
The deal will provide bus drivers a 13.5% increase in benefits and wages over three years. The agreement was reached during the 31st negotiation session of the past eight months.
ATU leaders had set a tentative strike date of Oct. 12 after their membership rejected Omnitrans last offer in late August. Omnitrans had prepared numerous contingency plans to keep many routes operating on reduced schedules during a strike. Those plans are delayed indefinitely, as the union prepares to put the new contract offer up for vote by its members. A date for the ATU membership vote has not yet been set.
Assuming the offer is approved by the membership, the tentative agreement will go before the Omnitrans Board of Directors for ratification on November 7.
“Clearly, we’re very pleased we were able to reach an tentative agreement with union leaders that will allow Omnitrans to continue serving the seniors, students and workers who make 50,000 trips on our buses each weekday,” said Durand Rall, CEO/General Manager of Omnitrans. “It is also very important to the lives of our employees and their families that we get a new contract in place quickly.”
Omnitrans’ latest offer addressed many of the requests made by union leaders, such as paid bereavement time off and improved benefits that will save drivers with families up to $315 per month, or 60%, in healthcare insurance premiums. With the Omnitrans offer, 8 in 10 drivers would pay $0 to $6 a month for healthcare.
Under the tentative agreement, Omnitrans drivers will receive a 3% wage increase in the first year of the contract with another 3½ % increase per year for the second and third year. The agreement surpasses the average U.S. Transit System wage increase of 2.63% for last year, and the 3% average for all U.S. Private Sector Employers in 2006. Once the contract is approved, every Omnitrans’ driver will receive a $350 one-time goodwill payment.
In eleventh hour negotiations, ATU and Omnitrans were each able to meet halfway on remaining issues of pay rate increases and back pay. While the total contract value of $65 million has not changed since the last offer in August, the new proposal accommodates union demands by reallocating funds. Implementation of contributions to a retiree healthcare fund was delayed until the second year of the contract and the amount of the contribution was reduced from the previous proposal. The changes will not impact past Omnitrans retirees.
“It’s a balancing act to live within our budget and provide the best possible deal for our employees without impacting service to our riders. Still, we were able to meet virtually all of their demands and union leadership met us in the middle on a couple issues” said Rall.
“I’m very glad that ATU leaders have agreed to an all around good offer and we can continue to keep the busses moving. Our riders depend on us,” Rall said.
ATU represents roughly 445 Omnitrans bus drivers. Omnitrans and ATU leaders have met 31 times since January regarding the terms of a new three-year contract. The previous contract ended March 31, 2007.
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