SEPTA’s largest union has called off a potentially devastating strike after reaching a tentative contract agreement with the transit agency.
But officials warn the deal won’t support SEPTA avoid major ticket price increases in January and possible deep service cuts next summer due to its $240 million annual budget deficit.
Brian Pollitt, president of Local 234 of the 5,000-member Transit Workers Union, said he was close to calling a strike this week but held off to avoid inconvenience to SEPTA riders.
“I am a former bus operator, so I know how much customers need this system. I didn’t want them to have to go through a shutdown,” he said at a press conference Wednesday. “I definitely would have said that, but I tried to continue the conversation, keep talking, and I think my strategy worked.”
The one-year contract extension increases employee wages and pensions by 5%, and SEPTA will continue initiatives to improve worker safety that the union has demanded, including a pilot project to install bulletproof shields for bus drivers.
However, SEPTA Chief Operating Officer Scott Sauer said the agreement would have no major impact, either positive or negative, on the system’s plans for a 29% fare escalate in January and possible closure of some routes later in the year due to transportation issues. an annual deficit of $240 million. Sauer said the shortfall for the current fiscal year is $153 million.
He once again called on the Legislature to approve the statewide budget escalate proposed by Gov. Josh Shapiro.
“Our customers don’t want to go through this cycle every year. Will we go on strike? We won’t go on strike? Will we receive funding? Will we not receive funds? This structural deficit must be addressed at some point, and legislative action will be taken to do so,” Sauer said.
The agency too they reportedly reached a tentative agreement with SMART Local 1594, the union representing workers on the Norristown High Speed Line and suburban bus and trolley lines.
Sauer said that feeling the budget crisis, SEPTA expanded the existing hiring freeze to cover open management and administrative positions that are not critical to safety or operations, while limiting contracting and consulting services. Additional cost-cutting measures will be introduced by the end of the year.
Shapiro vows to finally save SEPTA
Pollitt thanked Shapiro for his support in the negotiations, but both sides said they had heard nothing to indicate a rescue plan was coming.
Supporters of public transport and more elected officials in Philadelphia urged Shapiro to reallocate or “deal” some federal funds from highway and transportation budgets to transit, saying it would allow the agency to delay fare increases and reductions.
The governor expressed support for SEPTA on Tuesday, saying he “will not allow SEPTA to fail” and his administration “has been working hard to consider what steps we can take to strengthen SEPTA.” Spotlight PA reported. He said they “will have more to say about this in the coming weeks.”
Shapiro has so far refused to grant pliant funding, calling it a “temporary measure.” Then-Gov. Ed Rendell allocated funds for transit in 2005 and 2010, prompting criticism from Republican lawmakers.
According to Spotlight PA, the state sends nearly $2 billion annually to transit agencies, with $757 million in state sales tax going to SEPTA in 2023 to cover operating costs.
The SEPTA board will vote Thursday on systemwide fare increases of an average of 7.5%, which will take effect next month. He scheduled public hearings for December 13 on an additional raise, an average of 21.5%, that would take place on January 1.
Sauer said the agency will announce its plans for 20% service cuts in overdue winter or early spring and implement them next summer. These could include closing some Regional Rail routes and reducing the frequency of rail, bus and trolleybus services.
If an escalate in state funding is announced in the first months of 2025, SEPTA may abandon its plan to reduce service.
Lawmakers in the Republican-led state Senate declined to consider the transit funding escalate proposed by Shapiro and approved in the Democratic-led House, but they did discuss an alternative plan to tax video slot machines and dedicate the revenue to both transit and other roads and transportation needs.
However, lawmakers are divided over the tax rate and other issues, and no laws have been introduced. The Legislature held its last scheduled sessions last week and is unlikely to schedule additional sessions before the end of the year.
