whovian wrote:It is funny that SEPTA isn't budging on the whole benefits issue. No one at 1234 pays for their health benefits either; and they don't have union representation. At any time SEPTA could drop the bomb on it's non union employees and make them pay the outrageous somes they are asking of the TWU. For an agency that is so 'cash strapped', they sure seem pretty generous to people who aren't even on the front lines.
The benefits package for "A-payroll" (supervisory, administrative, & management) employees is tied to the TWU package. I agree it's something of a conflict of interest for SEPTA's labor relations personnel to be negotiating their own benefits.
While it would make it easier for SEPTA to make a case for concessions from the TWU on this issue if they imposed the cost-sharing on A-payroll immediately, it would be a bad idea in the long run. The rate the A-payroll employees pay would immediately be taken as a starting point for negotiations rather than an end point, so it would limit the savings SEPTA could obtain.
The sums being talked about are not "outrageous"--they are moderate by private-sector standards. As both the Inquirer and Daily News have editorialized, the status quo is no longer viable either from a budgetary standpoint or a political standpoint. When even the <u>Daily News</u> (ordinarily quite happy with class warfare) is on your opponents' side, that's saying something.
The immediate budget relief from a moderate cost-sharing plan would be about $20 million, more or less depending on the exact employee shares negotiated and the impact of cost-sharing on employee choices (when somebody else is paying the entire bill, you have little incentive to choose a lower-cost plan, and there is also the possibility that some employees will shift family coverage to a spouse's plan). That's not enough to balance the budget by itself--SEPTA and the other transit agencies in the state still need more funding, but it is a large enough number (and one that will grow in the future) that SEPTA can no longer ignore it.
The latter is why SEPTA has to have this for political reasons. Their credibility with the legislature is in tatters, and they must show meaningful efforts at addressing their structural problems in order for legislators to believe that SEPTA is worth sending more money to. Throwing up their hands and saying they can't do anything about benefits costs (the primary driver of SEPTA's growing deficit) basically says SEPTA is unmanageable in its current state.
Matthew D. Mitchell, Ph.D.
(health policy analyst as well as SEPTA-watcher)