SEPTA, union for Philly workers reach tentative deal that avoids strike

SEPTA bus, trolley and subway riders can enjoy an easier ride knowing that the transit agency and its largest labor union have reached a tentative agreement to keep service going in Philadelphia.

The one-year deal was struck between SEPTA and the Transportation Workers Union Local 234 on Wednesday, Nov. 20, 2024, a SEPTA spokesperson told NBC10.

"I want to thank the negotiating teams on both sides for working around the clock to get a tentative agreement in place, everyone worked in good faith and urgency," SEPTA"s Chief Operating Officer Scott Sauer said at a Wednesday afternoon news conference. "This tentative agreement is both fair to our hardworking frontline employees and fiscally responsible to our customers and taxpayers that fund the authority."

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What did SEPTA and TWU Local 234 agree to in new contract?

TWU 234 President Brian Pollitt on Wednesday said the negotiations were "tedious" and at times "a rumble," but that both sides acted in good faith to reach an agreement without workers walking off the job.

Local 234 has about 5,000 members, including bus, subway, and trolley operators, mechanics, cashiers, maintenance people and custodians.

The new deal -- which would need to be ratified by members before going into effect on Dec. 8, 2024 -- includes a a 5% pay increase that coupled with the last deal increases workers' wages to 12.5% more than they made as of Dec. 8, 2023, the union said.

"The pension increase from the last contract is also being rolled over, meaning that members who retire during the life of the contract will receive an additional 5% over the $94/$100 calculation," the union said.

The deal also includes schedule stability for operators and increased health benefits, the union said.

The two sides also agreed on making safety changes.

"These changes will allow the Union to more effectively police and enforce safe working conditions for our members," the union said.

SEPTA agreed to start a pilot program with bulletproof shields for bus operators.

The union credited the threat of a strike and the involvement of Democratic Pennsylvania Gov. Josh Shapiro with creating urgency that got the deal done. On Wednesday, Pollitt said Shapiro exhibited "leadership" and was involved in the process.

Pollitt said he was close to calling for workers to strike as recently as Tuesday, but ultimately, they decided to keep negotiating. Sauer said a strike would have been "devastating" to riders.

"I expect the SEPTA Board to consider a vote on the contract at its monthly meeting tomorrow, Nov. 21," SEPTA Board Chair Kenneth E. Lawrence Jr. said.

Pollitt said the union will urge its members to ratify the deal when they vote on Dec. 6, 2024.

Sauer said that he hopes with better funding, SEPTA and the union will be able to reach longer-term deals, rather than one-year stopgaps.

“This is not a healthy way for us to do business. We have to come to long-term agreements," Sauer said.

SEPTA and the union are putting pressure on the state for more funding to prevent them from being back at this same place next year, with the threat of a strike after the one-year contract expires.

“We’re going to continue to work in tandem in hopes that we can get transit funding, so we won’t be back at this place next year," Pollitt said.

Subway train, buses and trolleys kept rolling despite a threat of workers walking off the job

Pollitt's union authorized a strike -- that was unanimously approved by members -- that would have seen SEPTA's Broad Street Line and Market-Frankford Line subways, trolleys and at least 104 bus routes shuttered.

Union members sought a wage increase as well as safety and security improvements for workers.

“I’ll roll my sleeves up and bang on the table and do everything I have to do to avoid a strike,” Pollitt told reporters on Nov. 7, 2024.

Pollitt said the union and SEPTA were making progress. Those negotiations continued for about two weeks, until the new deal was struck.

The new deal comes after SEPTA revealed a massive $153 million deficit and warned of dire consequences to service.

"This is the beginning of what we have been saying is the transit death spiral," Sauer said on Nov. 12.

"SEPTA's unprecedented fiscal crisis had made these negotiations particularly challenging," Sauer said Wednesday. "We are in the best possible shape to continue the fight for funding and to preserve the critical services that SEPTA provides to the city and region."

Sauer said for SEPTA to reach these agreements it had to reach into its operating budget to fund the wage and pension increase for Local 234.

“There was a budgeted amount that we dedicated to negotiations this year, certainly. But it doesn’t really change the deficit," Sauer said.

SEPTA has implemented several cost-cutting measures like expanding a management hiring freeze and reducing contract and consulting services, Sauer said.

The SEPTA board is also set to vote Thursday on approving fare increases that will go into effect on Jan. 1, 2025. Sauer also warned that without new money service cuts could come by summer.

What about SEPTA's other union that is threatening a strike?

SMART Local 1594, the union that represents SEPTA workers in Chester, Delaware and Montgomery counties, also reached a tentative deal with SEPTA on November 20.

Hundreds of workers who keep buses and trolleys rolling in the suburbs and the Norristown High Speed Line on track also authorized a strike if they didn't reach a deal with SEPTA. 

Negotiations continued even after their contract expired.

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