There is crisis at Capital Metro.
Yes, we're talking about financial matters, but also a leadership void.
We witnessed that in the agency's missteps with its new commuter rail service and financial decisions that drained nearly all of the agency's $214 million reserve fund over six years. A lack of transparency has hurt public confidence. And recently we've seen another example of a leadership void in the way Capital Metro is pressuring bus drivers and mechanics to give up pay raises in a tough economy with methods that have alienated affected employees.
We're not opposed to workers helping out by surrendering 3 percent pay raises, as is being proposed. We applauded Austin police officers for proposing to give up their salary increases to help the city balance its 2010 budget. The city and union mindful of the budget squeeze are negotiating the terms for that deal.
Like the city, Capital Metro is facing a shortfall, about $12 million by agency estimates. So this is a time for shared sacrifice. Those who run Capital Metro should have first frozen salaries for executive and administrative employees to set an example and then gone to union workers with an offer to negotiate. During times like these, there are opportunities for each side. Capital Metro is shifting more work to outside contractors, and that undermines StarTran bus drivers and mechanics who belong to the Amalgamated Transit Union Local 1091.
Capital Metro created StarTran as a nonprofit agency to employ its bus drivers and mechanics so the agency would stay within legal limits for collective bargaining. Capital Metro also contracts with two private companies, Veolia and First Transit.
Under the pending offer, the 800 bus drivers, mechanics and others covered by a labor contract would forfeit salary increases guaranteed by the bargaining agreement with Capital Metro. And they are the only employees being asked to sacrifice pay raises for 2009 in which they would surrender 1.5 percent (scheduled to begin in July). In January, they would give up another 1.5 percent. Nonunion Capital Metro employees got their pay raises in January.
StarTran General Manager Terry Garcia Crews, with Capital Metro's blessing, offered bus drivers and mechanics a one-year cessation of outsourcing routes to outside contractors, Veolia and First Transit. That should have been a starting point for negotiations. The union has an interest in maintaining routes for StarTran drivers and mechanics, who are paid more than those working for private contractors.
Outside contractors furnish bus drivers and mechanics for 21 of Capital Metro's 71 regular routes. And Capital Metro has made clear its intention to shift more work to private companies. A fairer and better deal could be struck that would help both sides. The union could negotiate a longer cessation on outsourcing, say two to three years, in exchange for forfeiting 3 percent pay raises. Capital Metro would gain the savings that could help its bottom line.
Instead, the union has hardened its position, calling the offer by StarTran and Capital Metro an implied threat that requires bus drivers to give up pay raises or see more of their work shifted to private competitors. That is not the best way to encourage sacrifice or rebuild public confidence in Capital Metro.
We realize that putting a budget together is not easy when revenue is down. Everyone — Capital Metro employees and the public — will be called on to sacrifice to fill the budget gap. American-Statesman writer Ben Wear reported on the tough choices facing the agency in Tuesday's editions, including cutting bus service by 3 percent, increasing single-ride bus fare by 25 cents in January 2010 rather than in August 2010, increasing prices of 31-day bus passes and charging for the agency's full cost for UT football game shuttles. The measures include charging riders with disabilities 25 cents a ride. They now ride for free. Capital Metro's 340 administrative employees who are not covered by a labor contract likely will go without a pay raise next year and might also be subject to unpaid days off every quarter.
Even with those difficulties, there are opportunities. Capital Metro can overcome a budget crisis with prudent management and better planning. But improving its lagging public image will require something more: leadership.
http://www.statesman.com/search/content/editorial/stories/2009/06/24/062...
