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Originally Posted by the urban politician
The unions didn't play ball and now over 1,000 of them will be in the soup lines. I'm glad somebody is finally popping their little bubble of invincibility..
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Well, they'll still be eligible to collect their $385/week in unemployment for the next year and a half while they do nothing and have "Cadillac" health insurance subsidized at 65% via COBRA, but otherwise yeah, soup lines.
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Originally Posted by ardecila
I really wish, though, that CTA had a definite plan to reinstate all the service that is getting cut if/when funding becomes available. In the future, the CTA may have more money, but they may redirect it to other stuff, leaving us with a less-than-optimal transit system.
Once you have demonstrated that people will cope with a less frequent transit system, it's not a huge stretch to assume that you can keep the system that way and realize long-term savings. Unfortunately, the service cuts will undoubtedly lead to much lower ridership, but the effect may be delayed, since it takes awhile for people to change their habits.
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Not sure to what extent it's "definite" - but generally the first service that will be added back with any found money is the span of service (late night and early mornings on those 41 bus routes). There will probably be some corridors where the frequency reductions are so bad as to make the route an utter disaster of high-crowding and unreliability (I anticipate this on Western and Ashland), meaning these "key" routes would almost surely be the first to see restored frequency once the worst of the span reductions are dealt with.
On rail, I'm not sure. The rail system could probably already have easily absorbed a 5% reduction in service hours that should have happened a year ago (would have made the current hole that much smaller), not sure how the 9% reduction will impact things. There is no span reduction on rail, only frequency reductions. Off-peak rail loading standards are already very generous, with frequencies set to basically guarantee a seat if you want it - if the rumored public launch of train tracker occurs (sorry I have no more information on this) the reductions in frequency could really be quite manageable.
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Originally Posted by ardecila
Re: the union negotiations... I'm sure that, at this point, the union realizes that forgoing the pay increase is preferable to the massive layoffs. How could they not? There's probably something we're not hearing here... perhaps the CTA management is simply trying to screw the unions over, at the expense of the city's transit quality.
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Part of the hang up, I think, is in the trend in employee pension contributions. Even though entirely justified by the numbers and rationality, there is an emotional reaction wherein the employees feel like an entitlement is being pulled from them. Basically, prior to 2008, employee payroll contribution for retirement (pension + health care) was 3%. The 2008 sales tax deal raised the employee pension contribution to 6%, and added an aditional 3% contribution to a "Health Care Trust" to support retiree health care expenses. Part of the 2008 deal also specified that if the pension fund falls below 60% funding of all liabilities, employee contributions would have to increase to make up the shortfall. Well, 2009 happened - so employee contributions had to increase from 6% to about 8.5%, or a 2.5% reduction in take home pay. From the worker standpoint, they view this as a 2.5% paycut, even though of course its not, since part of their "pay" is the pension benefit they will receive. But nonetheless, the average bus driver feels like the 3.5% raise in 2010 was basically making up for that increase int he pension contribution, so if they forgo that raise it is effectively a "pay cut." Granted, non-union employees not only didnt have a say in the matter and got no 2010 raise, but also had the mandatory furloughs that cut annual pay by 6-8% depending on salary.
Anyway, when the union talks about having made concessions already, this is what they refer to - finally paying a fair share of the actuarial value of the very generous retirement benefit - a benefit that was reduced from bananas-insane generous (formerly, retire at 55 with full pension and health care for life, now retire at 62 with 90% health care). These concessions in terms of the pension and health care payroll deductions represented a sizable chunk of their take home pay - so the 3.5% 2010 raise felt like a long time coming, barely canceling out the additional 2.5% being deducted for the pension plan anyhow, even though one rationally could explain that the added contributions were actually beneficial by fixing the health of the pension plan.
That said, public sympathy falls off when the unions start campaigning for tax increases on the public to maintain union retirement benefits at no expense to union members. Those concessions in reducing the retirement benefit and increasing the employee contribution were the only reason a funding deal finally got done in 2008.