Amalgamated Transit Union -Local 757

Coming to your community soon!
The Good, the Bad, and First Student
By Jonathan Hunt, President

With a reputation as an anti-union multi-national Company providing transportation services in the United States, First Group dba First Transit, First Student and other subsidiaries has brought their act to Oregon. Public entities contracting for transportation services with First Group are learning quickly that their anti-union and anti-American labor law practices do not serve them or their communities well. Look at some of the areas in Oregon where this unwelcome brand of business practices is starting to get costly to the citizens who live there.

Corvallis – Corvallis City Transit
The City of Corvallis contracts out its transportation services with First Student, Inc. In 1999 through the signature gathering initiative process, ATU 757 put a ballot measure before Corvallis voters which was passed overwhelmingly, creating a municipal code concerning transit subcontracting. The ballot measure, which became known as the Corvallis prevailing wage and benefit law, requires city transit employee wages and benefits, including but not limited to pension, sick leave, vacation time, health and welfare, to be provided to the non-supervisory employees of the entity are less than those prevailing wages and benefits provided to other similarly situated non-supervisory employees with the same or similar duties; such prevailing wages and benefits shall be determined by averaging all wages and benefits paid to similarly situated employees in all city transit, transportation districts and mass transit districts within a 100-mile radius of the city.

Once established by ordinance, the wages and benefits of city transit workers can only be changed by law, or through collective bargaining with the employees’ bargaining representative and the contractor. The Union and First Student, Inc. have a legal and binding collective bargaining agreement currently in effect which expires on December 31, 2012. During negotiations that led up to that agreement, First Student tried unsuccessfully to change the prevailing health and welfare benefit. But, in late August 2011, First Student, Inc. unilaterally changed the health insurance benefit for city transit workers in violation of the Corvallis Municipal ordinance, the parties’ collective bargaining agreement and the National Labor Relations Act.

First Student, Inc, announced the unilateral change that effective September 30, 2011, it was cancelling the current health plan, Health Net of Oregon and replacing it with coverage provided by Kaiser Permanente in Salem, Oregon effective October 1, 2011. The impact of this unlawful change is devastating to city transit workers. These workers, who are currently receiving services from Corvallis area physicians participating in the Health Net of Oregon plan, will lose their physicians and be forced to travel an hour one-way to Salem, Oregon to receive all services provided by Kaiser Permanente. Some of these workers and family members are currently receiving medical care for and are recovering from various forms of cancer and other major medical conditions. This forced, unlawful change is putting the health of covered transit workers at risk. In addition, city transit workers forced into the Kaiser Permanente plan will not have pre-existing medical conditions covered for the first 365 days for hospital stay benefits. The liability to the City for allowing First Student, Inc. to violate Corvallis Municipal Code 1.24 could be great and far reaching. The potential harm of this unilateral and unlawful action by First Student, Inc. could force the City of Corvallis into prolonged and costly litigation. But this is not new for First Group subsidiaries. They do this sort of thing all over the country.

Portland – Tri-Met Paratransit (NELA)
For many years, the contract to provide paratransit service operations for TriMet in Multnomah County (NELA) was contracted with MV Transportation. TriMet paratransit operations are governed by a Federal Transit Administration Section 13c agreement, and extend to contractors who provide such service. In late 2009, TriMet awarded the NELA contract to First Transit, Inc. “Big mistake” was the Union comment at the time. One day before First Transit, Inc. began operating the service, both TriMet and the employees performing the NELA work got a taste of what was in store for them. First Transit, Inc. announced that some 12 NELA employees working under contract with MV Transportation were not going to be given jobs, and First Transit announced a change in health and welfare benefits, as well as other changes, all in violation of the Section 13c Agreement between TriMet and the Union.

TriMet’s then General Manager Fred Hansen immediately intervened after being notified by the Union of First Transit’s unlawful action, and gave First Transit until midnight that night, to comply with the Section 13c Agreement or they would not take over operation of the NELA service the next day. MV Transportation was also alerted and agreed to continue operating the NELA service if necessary. In general, the Section 13c Agreement requires that all employees actively engaged in the operation being awarded to another provider, shall be transferred to the new provider without suffering a worsening of their wages, benefits and hours or working conditions and that the acquiring operator must honor any collective bargaining agreement currently in effect until a new agreement is negotiated through their collective bargaining representative. The 13c Agreement also requires contract disputes to be settled through arbitration.

After being given the ultimatum to comply with the 13c Agreement or forfeit the NELA contract, First Transit signed an agreement with the Union on January 29, 2010 in which they agreed to comply with the 13c Agreement. Specifically, First Transit agreed to hire all operators without further qualification, to assume the MV Transportation contract in its entirety until a new contract is negotiated, and agreed that the level of insurance benefits would not be changed unless negotiated with the Union.

The Union and First Transit commenced negotiations in February of that year, and by September 2011, reached impasse after failing to reach an agreement that was acceptable and ratified by the parties. While First Transit receives an average annual increase of over four percent (4%) on their contract with TriMet, they are offering employees less than a one percent (1%) annual wage increase and demanding major concessions in most benefits and working conditions. The concessions First Transit is demanding would take employees back to what they were receiving in 1995.

On September 6, 2011 the Union moved the contract dispute to arbitration as required under the Section 13c Agreement. First Transit had ten days to notify the Union of its member on the three person arbitration panel, and then was required to select the neutral member of the panel within ten days after that. As of the date this article went to publication, First Transit has failed to comply. Should First Transit fail to comply with the Section 13c requirement, TriMet will be forced to compel First Transit to honor the Agreement or find First Transit in default of their contract.

Portland – First Student (PPS)
And here we go again! Same scenario, different contract. First Student, Inc. has the contract with the Portland Public School District to provide school transportation services. First Student’s contract with the Union expired on August 31, 2010. The Union and First Student reached impasse in negotiations and mediated the contract dispute with assistance from the Federal Mediation and Conciliation Service, with no success. In its contract with the Portland Public School District, First Student agreed to develop and implement wage schedules that give consideration to the average annual changes in the U.S. CPI for Urban Wage Earners and Clerical Workers. As you may have already expected, First Student’s wage offer falls way short of what they agreed to with the school district. Additionally, First Student is seeking many give-backs or take-a-ways such as wanting to charge members more for insurance coverage, reduce the number of guaranteed school route hours and many other concessions. The Union was scheduled to present First Student’s last offer during mediation and take a strike authorization vote on October 3, 2011.

First Group doesn’t understand why workers are mad. First Group’s philosophy is that their employees should just be glad to have a job. And that workers have to understand that for First Group to maintain its profit margin and send millions of dollars out of the community and out of the country, workers must agree to take less and in many cases, give back what they have already bargained for. After all, that is the First Group way!

And don’t look for things to get any easier for TriMet. First Transit’s TriMet lift contract in Washington County will be expiring soon and the rodeo will once again be underway.

ATU Local 757, Portland, OR
	The Good, the Bad, and First Student Coming to your community soon! The Good, the Bad, and First Student By Jonathan Hunt, President With a reputation as an anti-union multi-national Company providing transportation services in the United States, First Group dba First Transit, First Student and other subsidiaries has brought their act to Oregon. Public entities contracting for transportation services with First Group are learning quickly that their anti-union and anti-American labor law practices do not serve them or their communities well. Look at some of the areas in Oregon where this unwelcome brand of business practices is starting to get costly to the citizens who live there. Corvallis – Corvallis City Transit The City of Corvallis contracts out its transportation services with First Student, Inc. In 1999 through the signature gathering initiative process, ATU 757 put a ballot measure before Corvallis voters which was passed overwhelmingly, creating a municipal code concerning transit subcontracting. The ballot measure, which became known as the Corvallis prevailing wage and benefit law, requires city transit employee wages and benefits, including but not limited to pension, sick leave, vacation time, health and welfare, to be provided to the non-supervisory employees of the entity are less than those prevailing wages and benefits provided to other similarly situated non-supervisory employees with the same or similar duties; such prevailing wages and benefits shall be determined by averaging all wages and benefits paid to similarly situated employees in all city transit, transportation districts and mass transit districts within a 100-mile radius of the city. Once established by ordinance, the wages and benefits of city transit workers can only be changed by law, or through collective bargaining with the employees’ bargaining representative and the contractor. The Union and First Student, Inc. have a legal and binding collective bargaining agreement currently in effect which expires on December 31, 2012. During negotiations that led up to that agreement, First Student tried unsuccessfully to change the prevailing health and welfare benefit. But, in late August 2011, First Student, Inc. unilaterally changed the health insurance benefit for city transit workers in violation of the Corvallis Municipal ordinance, the parties’ collective bargaining agreement and the National Labor Relations Act. First Student, Inc, announced the unilateral change that effective September 30, 2011, it was cancelling the current health plan, Health Net of Oregon and replacing it with coverage provided by Kaiser Permanente in Salem, Oregon effective October 1, 2011. The impact of this unlawful change is devastating to city transit workers. These workers, who are currently receiving services from Corvallis area physicians participating in the Health Net of Oregon plan, will lose their physicians and be forced to travel an hour one-way to Salem, Oregon to receive all services provided by Kaiser Permanente. Some of these workers and family members are currently receiving medical care for and are recovering from various forms of cancer and other major medical conditions. This forced, unlawful change is putting the health of covered transit workers at risk. In addition, city transit workers forced into the Kaiser Permanente plan will not have pre-existing medical conditions covered for the first 365 days for hospital stay benefits. The liability to the City for allowing First Student, Inc. to violate Corvallis Municipal Code 1.24 could be great and far reaching. The potential harm of this unilateral and unlawful action by First Student, Inc. could force the City of Corvallis into prolonged and costly litigation. But this is not new for First Group subsidiaries. They do this sort of thing all over the country. Portland – Tri-Met Paratransit (NELA) For many years, the contract to provide paratransit service operations for TriMet in Multnomah County (NELA) was contracted with MV Transportation. TriMet paratransit operations are governed by a Federal Transit Administration Section 13c agreement, and extend to contractors who provide such service. In late 2009, TriMet awarded the NELA contract to First Transit, Inc. “Big mistake” was the Union comment at the time. One day before First Transit, Inc. began operating the service, both TriMet and the employees performing the NELA work got a taste of what was in store for them. First Transit, Inc. announced that some 12 NELA employees working under contract with MV Transportation were not going to be given jobs, and First Transit announced a change in health and welfare benefits, as well as other changes, all in violation of the Section 13c Agreement between TriMet and the Union. TriMet’s then General Manager Fred Hansen immediately intervened after being notified by the Union of First Transit’s unlawful action, and gave First Transit until midnight that night, to comply with the Section 13c Agreement or they would not take over operation of the NELA service the next day. MV Transportation was also alerted and agreed to continue operating the NELA service if necessary. In general, the Section 13c Agreement requires that all employees actively engaged in the operation being awarded to another provider, shall be transferred to the new provider without suffering a worsening of their wages, benefits and hours or working conditions and that the acquiring operator must honor any collective bargaining agreement currently in effect until a new agreement is negotiated through their collective bargaining representative. The 13c Agreement also requires contract disputes to be settled through arbitration. After being given the ultimatum to comply with the 13c Agreement or forfeit the NELA contract, First Transit signed an agreement with the Union on January 29, 2010 in which they agreed to comply with the 13c Agreement. Specifically, First Transit agreed to hire all operators without further qualification, to assume the MV Transportation contract in its entirety until a new contract is negotiated, and agreed that the level of insurance benefits would not be changed unless negotiated with the Union. The Union and First Transit commenced negotiations in February of that year, and by September 2011, reached impasse after failing to reach an agreement that was acceptable and ratified by the parties. While First Transit receives an average annual increase of over four percent (4%) on their contract with TriMet, they are offering employees less than a one percent (1%) annual wage increase and demanding major concessions in most benefits and working conditions. The concessions First Transit is demanding would take employees back to what they were receiving in 1995. On September 6, 2011 the Union moved the contract dispute to arbitration as required under the Section 13c Agreement. First Transit had ten days to notify the Union of its member on the three person arbitration panel, and then was required to select the neutral member of the panel within ten days after that. As of the date this article went to publication, First Transit has failed to comply. Should First Transit fail to comply with the Section 13c requirement, TriMet will be forced to compel First Transit to honor the Agreement or find First Transit in default of their contract. Portland – First Student (PPS) And here we go again! Same scenario, different contract. First Student, Inc. has the contract with the Portland Public School District to provide school transportation services. First Student’s contract with the Union expired on August 31, 2010. The Union and First Student reached impasse in negotiations and mediated the contract dispute with assistance from the Federal Mediation and Conciliation Service, with no success. In its contract with the Portland Public School District, First Student agreed to develop and implement wage schedules that give consideration to the average annual changes in the U.S. CPI for Urban Wage Earners and Clerical Workers. As you may have already expected, First Student’s wage offer falls way short of what they agreed to with the school district. Additionally, First Student is seeking many give-backs or take-a-ways such as wanting to charge members more for insurance coverage, reduce the number of guaranteed school route hours and many other concessions. The Union was scheduled to present First Student’s last offer during mediation and take a strike authorization vote on October 3, 2011. First Group doesn’t understand why workers are mad. First Group’s philosophy is that their employees should just be glad to have a job. And that workers have to understand that for First Group to maintain its profit margin and send millions of dollars out of the community and out of the country, workers must agree to take less and in many cases, give back what they have already bargained for. After all, that is the First Group way! And don’t look for things to get any easier for TriMet. First Transit’s TriMet lift contract in Washington County will be expiring soon and the rodeo will once again be underway.	Upcoming Meetings: