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December 8, 2006
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Going Next Spring
TWU: Kalikow Is Outstaying Welcome

By GINGER ADAMS OTIS

Metropolitan Transportation Authority Chairman Peter S. Kalikow announced last week that he'll likely step down from his post in the second quarter of 2007, after overseeing the start of two subway expansion projects on Manhattan's East Side.

CHAIRMAN OF CONSEQUENCES: Metropolitan Transportation Authority Chairman Peter S. Kalikow told an Assembly hearing that he refused to permit his board to vote on a contract approved on the second try by Transport Workers' Union Local 100 members even though he believed it was a good deal for management because workers had to understand that there were consequences for initially rejecting it.
"There are things I want to get finished, and when they are finished, I would like to resign," Mr. Kalikow said to Westchester Assemblyman Richard L. Brodsky at a public hearing Nov. 30.

Spitzer Not Talking

Governor-elect Eliot Spitzer, who during the run-up to his Nov. 7 win vowed to appoint an MTA chair who has extensive public transportation experience, didn't comment on Mr. Kalikow's self-imposed timeline.

Mr. Kalikow was given another six-year term by Governor Pataki in the spring, and his nomination was approved by the State Senate, even though it was clear by then that the front-runner to replace the incumbent, Mr. Spitzer, wanted to appoint his own team to key MTA positions.

The Chief-Leader/Pat Arnow

HIT THE ROAD, PETE: Transport Workers' Union Local 100 President Roger Toussaint (right) was unequivocal in his stance that Metropolitan Transportation Authority Chairman Peter S. Kalikow is overstaying his welcome. Flanked by Local 100 Secretary-Treasurer Ed Watt, the union leader spoke at length during a public hearing last week about the need for fiscal reform in the MTA.

Transport Workers' Union Local 100 President Roger Toussaint, speaking separately at the hearing, called Mr. Kalikow "an unwelcome tenant" in Mr. Spitzer's house.

"I think he should pack his bags and leave," he said bluntly. Mr. Brodsky responded, "Well, he doesn't share that view."

'Insulting' Move

Mr. Toussaint said Mr. Kalikow's acceptance of another term was "entirely improper and insulting" given that a new administration was months away from assuming control of Albany when the offer was made.

"He should step down immediately, I think just out of respect for [Mr. Spitzer]," insisted Mr. Toussaint.

"When you have that level of arrogance toward the Governor of New York, imagine what we have to deal with on the ground," he added.

Mr. Brodsky, a Democrat who over the course of the day-long public hearing expressed concern to both sides about the "corrosive" labor relations at the MTA, made a wry face.

"Point taken," he said. The public hearing was designed to allow Mr. Kalikow and Mr. Toussaint wide berth; MTA officials spoke during the morning session, while the labor leader, accompanied by Secretary-Treasurer Ed Watt and a union policy researcher, testified in the late afternoon.

Budget Surplus Near $1B

Mr. Brodsky questioned the MTA closely on everything from the progress of repairs to fix gaps along Long Island Rail Road stations to its recent budget disclosures.

The MTA Nov. 29 announced that fare and toll hikes can be avoided next year and in 2009. According to Executive Director Katherine Lapp, the authority will end Fiscal Year 2007 with a surplus of $938 million.

Ms. Lapp said an active real estate market filled the agency's coffers - it's expecting $52 million from taxes on the sale of Stuyvesant Town and Peter Cooper Village alone. The budget proposed using that money to repaint 200 subway stations, buy new police radios and increase emergency training.

But, Ms. Lapp cautioned, the MTA is projecting an $805 million deficit and a $1.79 billion deficit in 2010 as the real estate market cools. She also said that increasing health-care and pension costs are adding to the agency's debt.

Budget Monte

Mr. Toussaint told Assemblyman Brodsky he was deeply skeptical of any numbers produced by the MTA. He said the recent board meeting to discuss the budget followed what has become the usual MTA pattern.

"They go in to unveil a budget, and - huge surprise - the past numbers were off, and they have more money than they knew," said the union leader. "The next part of the drill is to say a deficit is coming, and we have to take it seriously. I don't know whether they are right or wrong, but I'm very sure of one thing: neither do they."

Mr. Toussaint urged Assemblyman Brodsky to push for more oversight of the MTA's books. He said that in 2003 a report released by State Comptroller Alan G. Hevesi noted 2,700 duplicate management positions within the agency that, if streamlined, would save an estimated $7 million annually.

'Severance for Suits'

Now that Chairman Kalikow is facing a different administration, Mr. Toussaint observed, he's made promises to slash redundancies.

"He's asked for $88 million to cover the costs of workforce reduction," said Mr. Toussaint. "We can expect that to be used for severance pay for suits."

Mr. Brodsky pressed the union leader to talk about possible hidden costs in MTA plans to increase employee emergency training. He asked if the $25 million for terrorism training that was recommended by an outside security group was sufficient.

Mr. Toussaint said it was not, but that the bigger problem was a clash over how to define the role of the subway and bus workers in disasters or rescue situations.

"Whatever the situation, and no matter how quickly you call the police or firefighters, for the one, five, or 10 minutes before they show up, the transit workers are the first-responders on the scene because they are already on the scene," he said.

'Pay Us If We're Used'

But the MTA didn't want to acknowledge that, he said, because it feared it could lead to increased wage and pension demands.

"Are they right?" Mr. Brodsky asked.

"Yes, they are. We would of course seek reasonable compensation for extra duties added to the workers," said Mr. Toussaint.

The most controversial issue concerning transit workers and emergency response, he said, related to their pensions. Local 100 workers generally follow the pension structure set up for the city's clerical work force, not its uniformed employees. If the transit workers were trained more regularly to act as first responders, he said, it could lead to different pension demands.

The MTA has said that its projected 2008 deficit is due in part to rising health-care and pension costs, and made it clear during the last round of contract negotiations that it was looking for workers to shoulder more of the financial costs involved for both.

Contract Award Soon

Mr. Toussaint also revealed that he expected a decision by mid-December from arbitrator George Nicolau in the ongoing contract dispute between Local 100 and the MTA.

He told Mr. Brodsky that the basic terms mirrored the contract deal offered by the MTA last December. That deal was voted down by Local 100 members in early January but passed in a re-vote in April. The only things still up in the air, said Mr. Toussaint, were the pension refund that had been part of the original deal, and the issue of lifetime medical coverage for retirees.

MTA negotiators had told Mr. Nicolau they wanted to "strip the contract of all the high-ticket items," Mr. Toussaint said. The union has argued that the deal reached through arbitration should be exactly the same as it was when members voted to accept it.

Used Veto to Punish

Mr. Brodsky, who said he questioned whether pension issues should even legally be discussed at the bargaining table, said he had asked Mr. Kalikow to be frank about his reasons for refusing to allow the MTA board to take a ratification vote on the contract after Local 100 members accepted it.

"He did tell me that he thought it was a good deal," said Mr. Brodsky. "But he felt that the transit workers should know there were consequences for failing to vote it through the first time."

The Assemblyman also said he would seek clarification about the Taylor Law prohibiting public employees from striking. If, as he believes, the discussion of pension issues in any context at the bargaining table is prohibited by law, it would change how the MTA - and other state and city agencies - could in the future push for increased worker contributions to pension funds.

"I think it needs more clarity. If civic leaders, justly or unjustly, are going to condemn violations of the Taylor Law in the form of a strike, then they should, justly or unjustly, condemn the MTA for violating the Taylor Law if it acted in bad faith," he commented.


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