Bus Drivers Approve Omnitrans Contract Offer
All Routes to Remain at Full Service
SAN BERNARDINO, CA - Omnitrans bus drivers overwhelmingly voted today to approve a three-year, $65 million labor contract offered by the transit agency, meaning Omnitrans service will continue without interruption."
The drivers, represented by the Amalgamated Transit Union (ATU), Local 1704, voted 273 to 25 to approve the new contract, which goes before the Omnitrans Board of Directors for ratification on November 7. The agreement reached last week averts a planned Oct. 12 walkout by bus drivers called for by ATU leaders.
The total value of the $65 million contract matches that of Omnitrans' previous contract offer in August. But the new agreement reached last week accommodates union requests by reallocating funds and by postponing the creation of a retiree healthcare account by one year.
"This successful vote shows that our coach operators overwhelmingly support this fair and generous offer. We're very pleased that the union was willing to meet us halfway on the remaining issues," said Durand Rall, CEO/General Manager of Omnitrans. "This new contract will allow us to continue to provide the same great service that our riders have come to rely on."
The contract raises wages and benefits for Omnitrans bus drivers by 13.5% over three years. Under the 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 annual pay hike 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.
Omnitrans' drivers will receive a $350 one-time goodwill payment under the contract. The deal also improves the benefits package, saving drivers with families up to $315 per month, or 60%, in their healthcare insurance premiums. Under the contract, 8 in 10 drivers will pay $0 to $6 a month for their healthcare premiums.
To keep the total value of the agreement at $65 million and accommodate union requests, negotiators on both sides agreed last week to delay the implementation of a new retiree healthcare account until the second year of the contract. Also the contribution amount was reduced to $52 per month compared to $75 previously offered. The changes will not impact past Omnitrans retirees.
ATU Local 1704 represents roughly 445 Omnitrans bus drivers. Omnitrans and ATU leaders met 31 times between January and October to negotiate the terms of the new three-year contract, which expires in 2010. The previous contract expired March 31, 2007.
"Like any household or business, we have a limited budget and we have to live within our means. This $65 million agreement provides our drivers with the best possible compensation package without undermining our ability to provide quality service to our riders," Rall said.
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