Editorial: Port Authority avoids strike, but still in trouble

‘ ‘ ‘ The buses might still be running, but that doesn’t mean that riders should be breathing… ‘ ‘ ‘ The buses might still be running, but that doesn’t mean that riders should be breathing any easier. Last Tuesday, the leaders of the Amalgamated Transit Union’s Local 85 and the administration of the Port Authority reached a tentative agreement over employee contracts that defused the possibility of a transit strike. But despite this agreement, the Port Authority’s situation is still grave, and it’s too early to say that this new contract will solve any problems. ‘ ‘ ‘ The rank-and-file members of Local 85 still have to vote on ratifying the settlement, as does the Port Authority board. But because neither party is willing to discuss the contract until after voting, it’s impossible to even gauge whether the union is likely to accept it. If it votes it down, the negotiations will have to go on, and that keeps the possibility of a strike very real. ‘ ‘ ‘ Even if the union members do ratify the contract, that doesn’t solve any of the problems still plaguing the Port Authority as an institution. The pensions of the drivers might be contractually secure, but that doesn’t change the fact that the Port Authority is losing riders and money. ‘ ‘ ‘ The 2009 projected budget is perfectly balanced at $350.3 million, although the revenues needed to balance the expenses include a projected $212.1 million in local and state grants. The budget also doesn’t balance post-employment benefits such as retiree pensions and health care, which put the budget into a $36.6 million deficit. ‘ ‘ ‘ The Port Authority has been in trouble for some time, seeing as the senior management’s salaries have been frozen for two years and the CEO’s for three. The Port Authority also eliminated a $500 pension supplement and lifetime health care programs, and it significantly increased the amount of money that Pitt and Carnegie Mellon pay for students to ride free. And that’s not to mention the service cuts enacted in 2007 and the fare increase in January. ‘ ‘ ‘ The fact of the matter is that the Port Authority is in dire financial trouble. Even though the union probably won’t strike, that doesn’t mean that the problems facing the company have all gone away. ‘ ‘ ‘ Rather, the potential contract resolution is simply a prelude to what the Port Authority is going to be dealing with for the next several years, especially if it continues to run its finances like it has in the past. And keeping in mind that the current agreement is only tentative and could still be voted down only makes the situation more worrisome. ‘ ‘ ‘ It’s safe to say that the only thing that can help the Port Authority at this stage is a drastic shift in terms of strategy and financial policy, but unfortunately, this seems unlikely. The union members certainly aren’t going to give up their pension plans, the managers can’t be expected to have their salaries frozen forever, and nobody in the city wants to go without public transit. ‘ ‘ ‘ The management of the Port Authority needs to take firm steps toward reconciling the demands of its union with the desires of the riders and their own financial reality. This might mean more fare hikes and route cuts, as well as more Port Authority employees losing their jobs. Tuesday’s tentative agreement might have reduced the possibility of a strike for now, but that doesn’t mean riders ‘mdash; or union and company leaders ‘mdash; should be any less worried.