Newsletter

from Local 817

September 5, 2006

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On September 1, 2006 the Metro-North Labor Coalition met to discuss the status of negotiations. Subsequent to that meeting Arthur Davidson reported for System Council 7 to local officials. All information in this newsletter is based on that report.

For several weeks the individual unions in the coalition have been meeting privately with Metro-North's Ray Burney to try and reach agreement on the .3 % work rule changes. Not one of the unions has been able to reach a deal with Metro-North. Burney wants double time pay eliminated. The IBEW and the majority of the other unions will not agree to this.

Interestingly, ARSA had a deal with Burney set to be signed. ARSA agreed to give up double time in exchange for, among other things,  an arrangement by which MNRR would buy back sick time on an annual basis. When Burney's boss, MTA Director of Labor Relations Gary Delaverson was apprised of the terms he pulled rank on Burney and the deal was squashed.

Discussion has also focused on the "inflator" factor pertaining to employee contributions to Health and Welfare benefits. The formula, as proposed by MNRR,  is as follows:

YEAR ONE (2007):   The contract provides for a 4% increase for this year.
                                   $50,000 (example of annual earnings) times 4% raise = $52,000
                                   (based on the example that H&W costs go up 10% for this particular year)
                                   10% (H&W cost increase) - 4% (wage increase) = 6% net
                                   6% increase in H&W contribution over last year = (1.5%) times 1.06 = 1.59%
                                   1.59% times $52,000 = $826.80 employee H&W contribution for the year

YEAR TWO (2008):     The contract provides for a 3.5% increase for this year.
                                   $52,000 (example of annual earnings) times 3.5% raise = $53,820
                                   (based on the example that H&W costs go up 10% for this particular year)
                                   10% (H&W cost increase) - 3.5% (wage increase) = 6.5% net
                                   6.5% increase in H&W contribution over last year = (1.59%) times 1.065 = 1.69%
                                   1.69% times $53,820 = $909.59 employee H&W contribution for the year

The consensus among coalition members is that the .3% work rule issue is at a deadlock. The coalition will approach the National Mediation Board next week and ask to be released. Davidson said the chances are "reasonable" that a release would be granted.