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Port Authority seeks 231 new hires to fill gap
Saturday, June 07, 2008

The Port Authority is looking to hire up to 231 bus drivers after July 1 in anticipation of current ones retiring early so they can preserve their lifetime healthcare benefits guaranteed under the existing labor contract.

Even if only half of the eligible drivers leave at once, authority officials said they may be unable to fill all bus and light-rail runs for several months until the new people are trained. In addition, the authority would be forced to pay overtime wages to remaining drivers willing to work extra hours during the last two months of the summer vacation season.

"To minimize the impact on riders, we have to recruit drivers," authority spokeswoman Judi McNeil said. "We don't know how many will actually retire until the last minute, because [union members] can retract their retirement papers up to the close of business on June 30."

That's when the contract expires with the 2,400-member Local 85, Amalgamated Transit Union, and when the authority may stop paying for post-retirement healthcare.

Local 85 President-Business Manager Patrick McMahon offered another view of the situation, claiming the authority is "forcing our people out the door" and blaming the union.

"I've got a guy who's 46 years old with 25 years of service who can retire with a full pension," Mr. McMahon said. "He's young, he's got kids in school, he needs family health insurance and he doesn't want another job. If he stays, his insurance is in jeopardy."

As of yesterday, 91 rank-and-file employees had submitted retirement papers for the end of the month, including 30 who would leave with a reduced pension but who would receive health, dental, vision, drug and eye insurance until age 65 and, afterwards, Medicare supplemental insurance.

Overall, up to 450 union and non-union employees, including the 231 bus-trolley operators, are eligible for retirement by June 30 with full or reduced pensions but with lifetime healthcare benefits. Not all of them will retire, Mr. McMahon insisted.

The new hires will be paid $8.50 an hour during the nine-week training period.

"We believe the union is encouraging people to retire early even if they'd receive reduced pensions simply to preserve post-retirement benefits," Ms. McNeil said.

Authority officials have said repeatedly that a new contract will not include post-retirement benefits, which have already been taken away from authority non-union personnel.

No changes are to be made for current retirees, who now outnumber active employees and constitute a major drain on the transit system's operating budget.

Mr. McMahon said 20 members of Local 85 retired on May 1 and 40 members retired June 1, half of whom would have continued working if they didn't fear losing healthcare.

"We've offered a way to stop the bleeding and that is to provide a 30-day window about retiring after we settle on a new contract," he said. "That's a common courtesy offered before to people faced with a life decision. But they don't want our help. They want to spin this situation like it's a big problem and it's our fault."

Ms. McNeil said if the authority continues to extend lifetime healthcare, the incentive to bring negotiations to a close and achieve cost-savings are diminished.

Also, Allegheny County Chief Executive Dan Onorato has insisted on bringing benefits in line with other transit systems and public entities as a condition of providing more than $27 million in county subsidies needed to qualify for state funding.

Union employees hired before Dec. 1, 2005, can still retire at any age with 25 years of service and receive a full pension as well as lifetime healthcare.

Union employees 55 years or older with at least 10 years of service can retire and receive healthcare, but their pensions are reduced by 5 percent a year for every year short of age 65.

In its announcement about recruiting drivers "in anticipation of massive retirements," the Port Authority conceded the number who actually opt to retire "may be substantially lower" than the 231 figure.

Nevertheless, Mr. McNeil said the agency has to be prepared. Almost all bus-trolley operators and other hourly personnel laid off last year when the authority cut overall service by 15 percent have been recalled to fill vacancies created through attrition.

Bus driver job requirements include a minimum of 21 years of age, high school diploma or GED, valid state drivers license with no more than three points, no chargeable accidents of DUI within three years, ability to work holidays and shifts and passing Port Authority skills and written tests.

Joe Grata can be reached at jgrata@post-gazette.com or 412-263-1985.
First published on June 7, 2008 at 12:00 am
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