TWU Still Shut Out; Pension Refund For ATU Locals Okayed

TWU Still Shut Out

Pension Refund For ATU Locals Okayed

Governor Pataki Sept. 14 signed a bill granting a one-time pension refund to members of Amalgamated Transit Unions 1056 in Queens and 726 in Staten Island.

Both unions ratified the same contract terms that were narrowly rejected by Transport Workers' Union Local 100 members in January. The contracts delivered raises of nearly 11 percent over three years and a new paid holiday, but also created a worker contribution of 1.5 percent of gross earnings toward health premiums.

Was Side Letter Secret?

To minimize the sting of the new contribution, MTA negotiators also promised a one-time lump-sum refund to workers who paid too much into their pension funds in the past.

But they didn't furnish the ATU locals with a side letter guaranteeing the refund if legislation changing the pension laws got stalled in Albany, or was vetoed by the Governor. Local 100 was provided with such a guarantee. Mr. Pataki denied knowing of that assurance and said he wouldn't have approved of the deal had he known of the side letter.

ATU International Vice President Larry Hanley maintained, however, that the MTA's chief negotiator, Gary Dellaverson, made a verbal pledge to the ATU locals to provide the money for the refund if necessary.

With the Governor's signature last week, the legislation necessary to begin processing the refund claims was finalized.

TWU's Dilemma

Local 100, however, is unlikely to get a pension refund in its contract unless it's agreed to by the MTA. Pension changes must be approved legislatively in Albany and therefore are beyond the purview of the Public Employment Relations Board, which is currently overseeing arbitration proceedings for Local 100.

The union and the MTA were to have attended PERB scope-of-bargaining hearings this month, but both Local 100 and the authority Sept. 5 submitted letters withdrawing their requests.

PERB confirmed Sept. 6 that it had canceled scope hearings. All issues pertaining to the union's contract will now be decided by a PERB-approved panel consisting of independent arbiter George Nicolau, labor lawyer Basil A. Paterson, who represents the union; and Mr. Dellaverson. Only Mr. Nicolau, however, will make decisions on issues that pertain to scope-of-bargaining powers.