On February 2, 2011, TriMet and the Amalgamated Transit Union, Division 757 (“ATU”) completed a second day of mediation without reaching an agreement. During mediation, many proposals were made and certain elements of those proposals were accepted, rejected and/or changed. Receiving proposals and counter-proposals is helpful because it both narrows issues and helps clarify the “gap” between the respective parties. It is also a challenge because each element that is introduced or changed has a cost impact that must be assessed.
Although we have not successfully resolved our differences, we want to outline the elements of what TriMet believes was the best proposal offered to the ATU. With this failure to reach a settlement, the contract remains the same as it is today, with union employees paying the increased costs of benefits and no COLA.
TriMet began the mediation asking about the possibility of a short-term or “bridge” agreement that would get us to the end of the year and an agreed upon schedule for further negotiation. This short term approach was proposed as a way to avoid further service cuts and layoffs in the coming fiscal year and to outline an orderly process for entering into a longer term agreement.
Below, I have listed the key elements of what I believed to be our best and reasonable short-term agreement. It was proposed that the changes would be effective immediately after contract ratification by the ATU and approval by the TriMet Board. We were confident that this could have been done in February. Even with TriMet’s priority to avoid service cuts and layoffs, the proposal we offered did not achieve the full savings necessary, nor did it meet the Board’s objective of financial sustainability. However, we felt that reaching a bridge agreement was in the best interest of all concerned and would be just enough to help us avoid service cuts and layoffs.
Summary of TriMet’s Best Offer to ATU
Term - The agreement would expire on December 31, 2011
Health Insurance- There would be two health care plans - Kaiser and Regence
Deductible – There would be no deductible for either Regence or Kaiser
Monthly Insurance Premium Payment Paid
Active Employees: 2% monthly premium contribution for Regence only (effective immediately upon ATU ratification and TriMet Board approval; no monthly premium contribution for Kaiser.
Retired Employees: No monthly premium contribution for Kaiser.
Co-pays
Regence: $15 for office visit. RX - $5 generic, $15 formulary brands, $25 non-formulary brands
Kaiser: $10 for office visit. RX - No change to $5 co-pay
Emergency Room - $50 co-pay for both Regence and Kaiser
Wage Increase – There would be no COLA in 2011. (Union employees received 3% COLA in June 2010.) Wages would be frozen in 2011.
Back Premium Payment for Pre-65 Retirees – TriMet would reimburse all pre-65 retirees for up to two months of their actual premium contributions upon ratification of the agreement.
Pending Unfair Labor Practices (ULP) – Pending ULPs would be withdrawn.
New Contract & Binding Arbitration - Negotiations for a new contract between TriMet and the ATU would commence March 1, 2011. If the parties were not able to reach agreement before August 1, 2011, mediation would commence. If the parties are not able to reach agreement during mediation, then binding arbitration would commence in November 2011.
Good Faith Cooperation - The ATU would encourage all members to submit any required open enrollment forms in a timely manner. TriMet’s open enrollment would be streamlined. Employees that are currently in Regence or Kaiser (and their dependents) would remain in Regence or Kaiser, at the premium contribution levels stated above, unless they return a signed open enrollment form with a different election. The target date for implementing the new plans was May 1, 2011.
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