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Amalgamated Transit Union (ATU) Local 265 Amends Contract With VTA

Release Number:	nr09-03
Release Date:	Sep 04, 2009

                   Modification Generates $5.5 Million In Savings

San Jose, Calif.- Last night, the Santa Clara Valley Transportation Authority (VTA) Board of Directors approved a contract amendment modifying terms and conditions of employment for ATU employees, generating $5.5 million in cost savings. Although ATU does not have an open contract at this time, union membership agreed to various cost cutting concessions, including deferring wage increases for two years, to help VTA address its FY10/FY11 budget deficit. 

Earlier this year, VTA executive management and all other represented employee groups (SEIU, AFSCME, and TAEA) agreed to wage freezes as well as unpaid furloughs of up to 12 days a year, for the next two years. Total savings from these actions were $17.3 million. Department operating budgets have been cut by 15% or more. Position vacancies from retirements and other employee movement are “frozen” and will remain unfilled except in the most critical functions.   Additional efforts to raise revenues have been explored, including increased efforts to sell advertisements on VTA vehicles, and use of Federal ARRA funds to support operation costs. Over the years, VTA has maintained a healthy reserve, and these funds will be tapped as well. All of these steps have reduced the budget deficit. Unfortunately, revenues continue to fall and the savings generated will not be sufficient to avoid service reductions in January, and a fare increase in October.

Transit agencies across the country, including VTA, have been struggling in recent months, due to revenue shortfalls associated with the prolonged recession. For the last two quarters, VTA has experienced double digit declines in sales tax revenue, and this is on top of the loss of all state transit funds, which were improperly diverted by the Governor and Legislature to offset the State’s multi-billion dollar deficit. VTA fare revenues have also declined in recent months as ridership levels have been impacted by rising unemployment.

VTA is currently in the process of conducting a series of public meetings to discuss options for reducing transit service in the coming year, which will further reduce operating expenses. VTA General Manager, Michael T. Burns, observed, “These service cuts were proposed after VTA had exhausted all other avenues for reducing costs and generating additional revenue.” 

After the Board approved this latest contact amendment with ATU, Board Chair, Dolly Sandoval thanked all VTA employees for their commitment to the community, “I am extremely proud of all VTA employees, including the ATU membership, who have stepped up during these very difficult times, agreeing to significant financial concessions. VTA provides essential public services, and these savings will reduce the impact of future service cuts.”

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About VTA

Santa Clara Valley Transportation Authority (VTA) is an independent special
district that provides sustainable, accessible, community-focused transportation options that are innovative, environmentally responsible, and promote the vitality
of our region.  VTA is responsible for bus, light rail and paratransit operations; congestion management; specific highway improvement projects; countywide transportation planning and provides these services throughout the county including the cities of Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga and Sunnyvale.  VTA continually builds partnerships to deliver transportation solutions that meet the evolving mobility needs of Santa Clara County

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