In light of recent inquiries about the differences between the latest Sun Tran and Teamsters Local Union 104 proposals on the table, this update is to clarify the impacts of the proposed financial packages.
The Teamsters proposal to Sun Tran would increase the city of Tucson’s General Fund contribution to Sun Tran by $20.3 million over the next three years. The Fiscal Year 2016 General Fund contribution to Sun Tran is budgeted approximately $30 million. The Teamsters proposal would make a 63 percent increase over current costs from the city’s General Fund, which supports Tucson Police, Tucson Fire, Parks and Recreation and other city services.
The Teamsters Local Union 104 proposal includes a wage increase of 75 cents per hour in the first year, $1 per hour for both the second and third years to the top rate. The Union is also proposing Sun Tran unfreeze the wage progression and move employees not currently at the top rate to where they would be if the scale had not been frozen in 2012. Additional cost over three years: $10 million.
The Teamsters Local 104 is also seeking pension increases of $1.58 per hour in the first year, followed by $1 per hour for both the second and third years of the contract. Sun Tran currently pays for 100 percent of pension contributions. Additional cost over three years: $8.65 million. They are also requesting that Sun Tran continue paying 100 percent of medical, dental and vision premiums for employees and dependents, including any premium increases, the additional cost over three years: $1.34 million.
The Teamsters Local 104 also wants an additional holiday to celebrate Cesar Chavez. Additional cost over three years: $294,000.
“The Teamster’s proposal is unsustainable. Even with the poor economic situation over the last seven years and at a time when wages and benefits have been cut for many in our community, Sun Tran has been able to maintain a competitive compensation package,” stated Kate Riley, Sun Tran General Manager. “For example, a total compensation package for an entry level coach operator when you evaluate annual earnings, pension and medical, dental and vision benefits is worth over $46,000.”
Sun Tran’s proposal to Teamsters Local Union 104 is a 50 cent an hour increase to the entry level coach operators, with continued payment of 100 percent of medical, dental and vision premiums, as well as an increase to pension contributions and an additional holiday.
