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Port Authority-union talks progressing
Mechanics Frank Maruca (left) and Rock Mosesso
Joe Appel/Tribune-Review
The positive turn, however, might not come in time to prevent unplanned labor costs from hurting the mass-transit agency's already-strained budget.
The agency's 2,200 drivers and mechanics have been working without a contract since June 30.
A top labor leader reported progress this week in contract talks with agency officials, but not before failing to adopt a new contract with lower employee benefit costs -- forcing the Port Authority to spend nearly $5 million that it didn't anticipate.
Amalgamated Transit Union Local 85 President Patrick McMahon said he now believes a compromise is possible after meeting for three hours Sept. 22 with acting Port Authority CEO Dennis Veraldi at the agency's Downtown offices. More talks have occurred since, he said.
"Those meetings have been very positive and give me a little bit of hope we can work something out," McMahon said. "When we get back to the table, we'll find out for sure."
An attempt last month to find common ground with the help of a state-appointed fact-finder was unsuccessful. Union leaders could recommend a strike if talks would fail.
"We remain hopeful we can reach an agreement at the bargaining table," said Veraldi, who became acting CEO Sept. 13.
The authority's $320 million budget for the fiscal year that started July 1 relied on getting $19 million -- or nearly $1.6 million a month -- in employee benefit cuts through the negotiations.
In the first three months of the authority's fiscal year, the cost would be $4.75 million, which is not accounted for in the agency's budget.
Port Authority spokesman Bob Grove declined to say whether the agency faces a $4.75 million shortfall. The authority, instead, will address the problem at year's end, he said.
Possible additional revenues -- from increased ridership or savings that might come from changes in a new labor contract -- could offset some of the extra spending on employee benefits, he said.
So far this year, however, getting ahead financially has not been possible.
The agency started the fiscal year with a $64 million deficit and was able to balance its $320 million budget only by accepting a special $45 million diversion of state highway money from PennDOT and assuming the $19 million in union concessions.
Port Authority continues to lobby state lawmakers for higher, and stable, annual subsidies.
Higher fuel prices also have adversely impacted the Port Authority's finances.
The agency is paying an average of $1.99 for a gallon of diesel. It budgeted for $1.60 a gallon this year.
Port Authority is the nation's 15th-largest mass-transit system and logs about 68 million riders a year in Allegheny County and portions of surrounding counties.
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