spend matters spend matters About this site
Advertise with Spend Matters
Advertise with Spend Matters
 

February 09, 2010

 

Friday Rant: A Bad Week in Philly, But Not What You Might Think

It's been a rough week here in Philadelphia. SEPTA (Southeastern Pennsylvania Transit Authority) was struck at 3:00 AM Monday by Transport Workers Union Local 234 and the Phillies lost the World Series. In my view, the event not involving that ball club with overpaid employees and celebrity girlfriends is the one that warrants scrutiny for my rant this Friday.

Transit strikes occur in all cities from time to time but the issues surrounding this particular strike are especially absurd. Today's Inquirer sums up the facts as follows: "The leaders ... [of] 5,100 bus drivers, subway and trolley operators and mechanics rejected a contract that included a $1,250 bonus upon ratification, a 2.5 percent raise the second year, and a 3 percent raise in each of the final three years. It also called for no increase in the workers' health-insurance contributions, which are 1 percent of base pay. It called for a graduated increase in workers' contributions to their pensions, from 2 percent to 3.5 percent, and an increase in the maximum pension payment to retirees, from $27,000 a year to $30,000 a year. In addition to increased pension contributions from SEPTA, the union was seeking a 3 percent raise for each year of a four-year contract."



Sounds like a darned good contract offer doesn't it? Not according to Union President Willie Brown who's quoted saying "strikers would stay out as long as it takes to secure our pension". Something is not adding up here. Nearly 1,000,000 people ride SEPTA daily -- including the majority of school students whose parents must now arrive late to work and leave early to provide that transportation if, in fact, they have a vehicle with which to do so. Rush hour traffic -- as a result of the strike -- has dramatically impacted overall productivity and a very large number of workers in the city simply have no way to get to work.

Unemployment figures came out today and according to the LA Times "The jobless rate rose to 10.2% in October from 9.8% in September -- first time in the double digits since 1983." Now how, in these recessionary times, could the rank and file members of this union opt to strike essentially because the value of their pension fund is not what it once was? And in doing so wreak havoc with the lives of their customers whom they see every day and depend upon the transit system for their livelihood? Let's assume for a moment that SEPTA drivers are not stupid, but have been coerced into striking by their leadership. This sort of myopia, when it comes to the overwhelming economic conditions that currently prevail, can only result from being fed very wrong information and swallowing it. A disconnect of such proportion demands some sort of pre-emptive remedy going forward. The loss of over-all productivity, sorely needed lost tax base to a city in crisis -- to say nothing of customer hardship and placing school kids at increased risk -- commands it.

We constantly harp, analyze and dissect on these virtual pages about supplier visibility, vertical corporate communication, pooling resources, and the importance of staying on task and on the same page within the corporate environment. SEPTA and other large employers need to do the same -- perhaps even more so when it comes to providing essential services to their communities.

By providing well designed, interesting and stimulating programs to elucidate the complexities of local, national and world events via courses and forums for their employees, organizations like SEPTA could, overtime -- and at a fraction of the cost that a strike imposes -- potentially make a huge difference in combating the ignorance and malaise that leads to strikes such as this one in Philadelphia.

And so far as the Phillies go, we're all anxiously awaiting 2010.

- William Busch

Comments
Well, Bill, here in Boston we have a long history of pampered transport workers, with subway platform sweepers making absurd salaries and so on. The system loses a zillion dollars every year, it's packed with patronage jobs, and all you have to do is ride the NY subway once to realize just how bad the service is.

The transit union calls a strike every time anyone tries to address any of this, and of course immediately cripples the city. The politicians cave in to them every time -- and why shouldn't they, Cousin Reuben sells tokens at the Kenmore station, and he's unhappy.

I don't think "dialog" or "education" will fix anything here.
# Posted By Long-time Boston commuter | 11/7/09 4:39 AM
Long-time,

I get that and realize that this idea sounds naive. But the problem runs far deeper than corruption and patronage. It ultimately stems from the fact that our public system of education has failed the majority of U.S. workers. TV news is replete with reporters interviewing 'the man on the street' talking about their "rights" and whats fair and unfair and it's clear that most are clueless when it comes to our Constitution, charters, contracts and the foundations of U.S. society.
What I'm suggesting is remedial education conducted by professionals outside the corporation to establish basic knowledge and foster analytical skills that were never provided or successfully taught in the first place -- enabling people to think critically for themselves. Even if we're able to corrrect these problems in our public system of education for the future, we'll still be suffering the consequences of neglect for the next 50 years.
# Posted By Bill | 11/7/09 6:59 AM
You are the one with myopia.

SEPTA is making more money and has higher ridership than at any time in the Authority's history. The month before TWU's contract expired they bragged in an article they were doing better financially than almost any other transit system. The next month they received $211 million in federal stimulus funds of which 10 percent was to be directed to operating costs.

What sets off these "uneducated workers" is management is asking them to direct their raise toward paying for their underfunded pension. Meanwhile they are sweetening pension benefits for managers and not asking them to contribute out of their paychecks.

Management all across this country likes to grab pensions, squeeze salaries and cut benefits all in the name of what is going on in the overall economy. Casey, SEPTA's general manager and former treasurer, blames the underfunded pension on the stock market when the reality is it was poorly managed for 20 years.

The REAL PROBLEM is fat-headed pompous, ranting bloggers, too lazy to do their homework who look down on people who work hard. The same working folks who are trying to protect their wages and benefits in a down economy when idiots like you are running around saying the sky is falling in. You have a lot to learn.
# Posted By James | 11/7/09 12:58 PM
James,
Thanks for supporting, albeit inadvertently I’m sure, the premise of my Friday Rant. How SEPTA or any other organization is managed from the top down might occasionally "set off" (as you say) their employees, but corporations are not democracies and the employees below the executive management level don't run the corporation. If TWU's leadership thought the pension fund was poorly managed for the past 20 years what have they done about it before now?
My point was -- and is -- that striking out of apparent anger and frustration before the union leadership has exhausted all other avenues of redress including taking their case to the public via news releases, public forums and even to the ridership (who might be willing to boycott the system given a real grievance and some notice) before crippling all the other workers in the city -- to say nothing of washing 2%/week of their employer’s revenue down the drain for every week of striking – is irrational, selfish, and misinformed.
You wax on about how terrible and selfish SEPTA’s management is and then support the union in turning around and kicking the dog by behaving the same way toward the ridership without whom they wouldn’t have a job in the first place. And so far as accusing me of being a "fat-headed pompous ranting blogger, too lazy to do [his] homework [and] who looks down on people who work hard", I’ve done construction work in Philly for over twenty years. And BTW James, your comments are welcome – name calling is not.
# Posted By Bill | 11/9/09 6:02 AM
About Us | Advertising and Sponsorships | Advisory Services | Contact Us   © 2004-2010 Spend Matters, LP All rights reserved