The employees of TheBus, Honolulu’s public transit system, ratified a new 5-year labor contract on Tuesday.
Oahu Transit Services, Inc. officials and the Teamsters Local 996 met for several weeks to come to the final offer. The company provided its last, best and final offer on Sunday, June 30, 2013.
"The five-year labor agreement will provide stability for our patrons as well as for our employees," said Roger Morton, President and General Manager of OTS. "We want to thank Teamsters Local 996 and our bargaining unit employees for understanding the current City budget situation and accepting the contract."
"It speaks well of the parties, OTS and the Teamsters, that they were able to reach an agreement amicably, supported by the membership, and avoid any shutdown of TheBus," said Honolulu Mayor Kirk Caldwell. "TheBus system will continue to be a critical part of our transit plans for the future, and I believe its integration with rail will help to improve transportation services for Oahu residents."
"Given recent transit strikes in San Francisco and the importance of TheBus to Oahu’s residents, mahalo to the Teamsters and OTS for coming to an agreement that keeps our transit system operational for the next five years," added Michael Formby, Director of the Department of Transportation Services.
The agreement includes wage and benefits improvements for the more than 1,300 bargaining unit employees.
Major Contract Terms
Contract affects approximately 1,300 OTS employees that include bus operators, maintenance workers, supervisors, storekeepers and administrative employees.
Duration - 5 years from 7/1/13 thru 6/30/18
Wages - No wage increase for 16 months 7/1/2013 -10/31/2014; Wages will increase by 6.4 percent over five years.
Health Care - No change. All union employees are covered under Teamsters Health and Welfare plan through 100 percent employer contribution. Current contribution rate: $859 per month.
Retiree Healthcare - Increase contributions to the Teamsters Retiree Health fund over the last three years of the agreement. A 5 percent increase over the term of contract.
Pension - No pension increases for 16-months 7/1/13-10/30/14; 17 percent increase in pension contributions over the five year period
Cost Impact - No budgetary impact in the current FY14 fiscal year