Members of Transport Workers Union Local 234 have voted to approve a one-year contract with SEPTA, union officials said over the weekend.
The collective bargaining agreement, which negotiators announced Oct. 27, averted a possible strike, which would have halted bus, trolley and subway service in the city. Local 234 members authorized a walkout in early October, ahead of the Oct. 31 expiration of its current contract.
Over the course of the next year, thousands of operators, mechanics and other SEPTA employees covered by Local 234 will receive a 7% salary increase and a $3,000 “anti-inflation” bonus, union representatives said.
“This was a good agreement for our members,” Local 234 President Brian Pollitt said Saturday, in a statement. “It will put more money in our members’ pockets during a time of high inflation and help SEPTA with recruitment and retention.”
“But I want to emphasize that it is very much a work in progress,” he continued. “It is only a one-year agreement. Much work remains, especially as it relates to compensation, safety and security issues.”
Recent Local 234 contracts have ranged between 2 and 5 years in length; however, with SEPTA still trying to recover from pandemic-fueled ridership losses and resulting fare revenue decreases, the sides will be back to the negotiating table in a matter of months. The deal expires in early November 2024.
By that time, SEPTA leaders hope that the authority will be receiving nearly $200 million extra annually from Harrisburg, thanks to a modification in how sales tax revenue is allocated. The Pennsylvania House of Representatives has passed a tax code bill including the change, though it has not yet been approved in the Senate.
Voting on the tentative CBA took place Friday at various SEPTA work locations, and, of the nearly 2,500 members across three bargaining units who cast a ballot, about 61% approved of the contract, according to Local 234.
Workers are set to receive a 4% raise Dec. 10 and an additional 3% July 7, according to information from the union. In order to retain employees, the contract also includes a $2,500 bonus for those age 62 or older or with at least 30 years of service who defer retirement.
Local 234 officials said the agreement also includes better progression rates, pension increases and a boost to the disability pension.