An arbitrator has ruled in favor of RTD in a wage and benefit dispute with its union, saving the transit agency an extra $10 million it would have had to pay employees over three years had labor prevailed.
The Regional Transportation District’s contract with Amalgamated Transit Union Local 1001, which represents nearly 2,000 RTD employees, expired at the end of February.
Shortly before expiration, state labor department officials ruled that Local 1001 could not call a strike against RTD and if negotiations hit an impasse, as they did, unresolved issues would be submitted to binding arbitration.
Arbitrator David Vaughn considered final offers from both sides on wages, benefits and other contract issues.
Citing a budget crisis largely brought on by declining sales-tax revenues, RTD asked for a wage freeze this year and in 2010 and a 15-cent-an-hour increase in 2011 for most employees; some mechanics would get $1 more an hour.
The union’s final proposal called for a 1.6 percent wage increase this year, 2 percent in 2010 and 3.9 percent in 2011.
In his ruling, Vaughn noted both sides agree “that the nation, and the Denver metropolitan area in particular, are suffering through an almost unprecedented economic downturn.”
“Clearly, most projections of economic recovery offer no support for wage increases in 2009, little in 2010 and only optimistic speculation for 2011,” Vaughn wrote.
He also agreed with RTD’s proposal to leave health benefits unchanged. The union had proposed a hike in RTD’s monthly payments to the health plan.
Vaughn made a “fair and equitable decision,” said interim RTD general manager Phil Washington.
Local 1001 president Holman Carter said he was “not surprised by the ruling on wages and benefits because of the economic situation.”
Carter said he was pleased Vaughn ruled in the union’s favor on other issues — rejecting RTD’s proposals to contract out more maintenance work and alter the pension plan.
