Metro News Release
For immediate release: August 4, 2011
Metro declares arbitration award generous
Asks Union to improve service for customers paying the increases
In the interest of moving forward with the important work of improving safety, reliability and customer service, today Metro’s Board of Directors accepted a binding Arbitration Award that gives Local 689 employees an annual three percent wage increase for the fiscal years 2010 – 2012.
“We strongly disagree and were dismayed to learn the Court’s perspective that wage increases are easily absorbed by our riders and stakeholders, a view we do not share,” said Metro Board Chair Catherine Hudgins. “These increases are not sustainable by our customers or by our funding jurisdictions.”
Instead of prolonging this three-year legal dispute and incurring additional legal expenses, the Board said that it would not appeal the U.S. District Court’s decision.
“We want to put this matter behind us so that our employees can remain focused on serving our customers, but clearly we regard an award of this magnitude as generous given the extraordinary economic constraints under which our customers and our taxpayers are living,” Hudgins said. “Many people in the region have received less, including zero increase in wages, furloughs and pay cuts.”
Hudgins said that with this decision, she is looking for Metro employees to become active partners with the Board and GM/CEO in setting a new benchmark for customer service by consistently delivering the high level of service exhibited by Metro’s most exemplary employees.
“Regardless of how one accounts for this expense, Metro’s customers are paying for this Award through their fares and local taxes, and as such, deserve better service,” she said.
The total cost to Metro is estimated at $96 million in wages, with an additional $8 million projected increase in pension contributions. The Authority had reserved funds consistent with accounting rules, and therefore this increase will not adversely impact Metro’s budget this year.
Hudgins said Metro is beginning to build its multi-year budgeting plan and that the Board’s guidance to management is to aggressively continue to identify opportunities to reduce expenses, increase productivity, and improve efficiency.
“Looking ahead, there does not appear to be any basis for budgeting a general wage increase next year,” Hudgins said.
News release issued at 11:44 am, August 4, 2011.