The Day of Reckoning Fast Approaches in New Jersey

New Jersey residents are about to feel the cold sting of a strike by NJ Transit rail workers. They've been without a contract for years and the matter has gone to federal mediators, who have ruled multiple times in favor of the unions:

Several union representatives and elected officials speaking at the rally urged state leaders to accept recommendations from a Presidential Emergency Board, which sided with the unions. NJ Transit officials rejected those recommendations.

At least one of the remaining sticking points surrounds health benefits, with the unions offering to pay 2.5 percent of their straight time salary for health benefits.

NJ Transit wants employees to pay 10 to 20 percent of premiums, depending on which plan they're covered by.

Transit and rail union officials sat down Friday with federal mediators National Mediation Board in Washington, D.C., where the two sides discussed a new offer from the agency to avert a March 13 strike or lockout.

While the two sides failed to reach a settlement, a release from the National Mediation Board said the discussions were "positive and constructive."

Asked if an agreement is in the offing, coalition spokesman Stephen Burkert declined to discuss details.

"We're closer now than we were months ago," Burkert said following the rally. "We want to settle this, and we want to do it at the bargaining table."

The two sides will meet again Monday in Newark in hope of hammering out a final settlement, Burkett said.

So far, Governor Chris Christie, fresh off kissing Donald Trump's ass in the GOP primaries after dropping out of the race himself because he couldn't generate any traction despite spending more time in New Hampshire than New Jersey, has been uncharacteristically silent about this major issue facing the state.

It could be that Christie doesn't know what NJ Transit is, or that it is a major economic engine for the state. Or, he doesn't know how to deal with the problem. Either way, he's been MIA on transit issues and his GOP allies in the state legislature seem more interested in slashing or abolishing the estate tax than they are making sure that the transportation trust fund and pension fund obligations are met.

Let's also point out that NJ has not raised the motor fuels tax in a generation, while NJ Transit riders have faced repeated increases in fares over the past decade because the state continues to reduce its support for transit. New Jersey is one of the states most heavily dependent on mass transit, and the cuts and fare hikes have combined to leave the agency without wiggle room to deal with contract matters with its employees.

To help close an $80 million budget gap, NJ Transit has proposed to increase its fares an average of 9 percent, effective Oct. 1, 2015. This would be the first fare increase in five years; the last fare increase averaged 22 percent. As part of this proposal, some bus and train service would also be reduced. Meanwhile, the state’s gas taxes, already among the lowest in the nation, have not been raised since 1988.

The motor fuel tax now purchases less than it did a generation ago, so there's even less money to go around.

These workers deserve pay raises and it shouldn't be shouldered entirely by the commuters.

Frankly, there's no easy answers here - but it starts with refocusing attention on how the state budgets transit. Gov. Christie went ahead and pulled money from the Port Authority to rebuild the Pulaski Skyway in a decision that the federal SEC is investigating as a potential violation of bonding with the Port Authority. That's because the state didn't have any money in the trust fund to pay for the work. All across the state, bridges and other infrastructure is crumbling, and there's no money to do all the work.

This affects the ability of residents to get around the state, and affects public safety. After all, we shouldn't have to live in fear of concrete falling off bridges, bridge abutments collapsing, or structures failing entirely. And mass transit is one way in which more people can get around the state reducing congestion and traffic. Gov. Christie has long shown disdain for mass transit and these problems are coming home to roost.

Far from showing leadership, Gov. Christie is all but abdicating his leadership role and instead focused on how his choices can best suit his political future. That's no way to run the state, and it shows.

If this strike or lockout occurs, there is simply no way for hundreds of thousands of workers to get into the City. There isn't any capacity available to add buses to cover all the displaced workers. We're talking about gridlock, lost productivity both in New Jersey and in neighboring New York. Telecommuting is the only option for those fortunate enough to have it, but for those who work in fields where they have to be there in person, this will have serious financial consequences to them, their families, and their employers.

In plain English, the NJ Transit strike contingency plan is a bunch of wishful thinking and prayers, much like their asinine plan in place before Hurricane Sandy struck and severely damaged NJ Transit's rail operations for months.

Moreover, the strike would also cripple freight movement throughout the state since NJ Transit controls tracks used by freight lines and the freight wouldn't be able to move. This would have a devastating effect across the state.

Labor Action Ends; Concrete Workers Resume Work At Ground Zero and NYC Projects

Work at Ground Zero and other high profile projects around the city are underway once again as a work action by the concrete union has ended after a arbitrator ruled that the union violated Project Labor Agreements and both the union and developers agreed to continue negotiating through August 16 and operating under the terms of the contract that expired on July 1.

The deal restarts work stalled at the Freedom Tower and World Trade Center transit hub after the Cement and Concrete Workers District Council walked off the job Monday in a dispute over wages and the use of nonunion labor.

The union agreed to return to work this morning under the conditions of a contract that expired June 30 and to extend contract talks until Aug. 16, the sources said.

Industry analysts had feared if the strike continued it could bring work to a halt at the Trade Center and result in the layoff of more than 1,000 workers.

The strike did not affect the 9/11 Memorial, which is on target to open on the 10th anniversary of the Sept. 11 attacks.

The 2,700-member union also walked off several other high-profile construction projects on Monday, but they returned to work yesterday after an independent arbitrator ruled they were violating no-strike provisions in their labor agreements.

Work Stoppage Threatens Construction Projects Throughout NYC, Including Ground Zero

The ongoing labor dispute between concrete union workers and developers has meant that work at Ground Zero is slowly grinding to a halt; on the day that the Freedom Tower officially became the tallest building in Lower Manhattan, carpenters walked out in solidarity with the concrete union workers.

Carpenters are refusing to work at a World Trade Center project and other sites in solidarity with cement laborers who have staged a work stoppage as they negotiate a new contract.

More than two-dozen carpenters have joined hundreds of cement workers in a job action at One World Trade Center that began Monday. The cement worker stoppage has slowed construction there and on the World Trade Center's new transit hub, both being built by the Port Authority of New York and New Jersey

I understand that developers feel that they're being squeezed on profits for construction projects and that the level of new construction isn't where anyone wants it to be, but they're spiting themselves to go after the unions seeking serious cuts in salaries for these folks. Depending on who you ask, the unions are being asked to cut salaries by 20%.

But at the same time, several of the job actions have occurred at sites where the unions promised no walkouts or union actions to disrupt construction. Those job actions will mean that the court actions pending against them will not go well for the unions.

Moreover, it affects the bottom lines on several key projects around the city, especially at Ground Zero. The Port Authority and Silverstein Properties can ill afford more delays and more costs resulting from work actions.

Groups that are pushing for the elimination of Project Labor Agreements (which were signed by the parties involved and ostensibly prevent strikes and work actions) are using the ongoing disputes to further their own agenda that they should free developers from having to work with the unionized trades.

France Shuts Down Over Pension Reform Plan

The French lifestyle is under assault and pensioners aren't sitting back and letting the Sarkozy government impose the austerity measures that are designed to prop up the existing system. They're protesting in the streets, and the protests are getting increasingly violent. Indeed, it looks like the carbeque is making its return.

Among the changes are an increase in the retirement age from 60 to 62. Yet, riots have broken out around the country in nationwide strikes that have all but shut down the country. The strikes include major oil refineries, which has put a crimp on the transportation sector, including rail and air travel. Airlines have been told to reduce flights into the country because of scarcity of jet fuel.

Train operator SNCF said it expected 60% of trains to run on Tuesday, the Le Monde newspaper reported, with Metro and local trains around Paris also expected to keep some services running.

Despite the disruption, one opinion poll on Monday suggested that 71% of those surveyed supported the strikers, despite the increasing effect on people's lives.

There was more opposition among those travelling as the strikes began.

"We shouldn't think it's still acceptable to stop working at 60 years old - we should work until 65. Like other European countries we have to work longer than 60 years," insurance worker Frederic Deraed told the BBC's Matthew Price in Lille.

"It's completely useless," said housewife Nadine Gestas.

"We can't pay the pensions and we can't avoid increasing the age of retirement. Every country in Europe is raising the age of retirement."

But Olivier Sekai of the General Confederation of Labour (CGT) said he saw support increasing for the protests.

"The government is acting as if we didn't have a rich country, as if we didn't have the money. The thing is we do have the money," he told the BBC.
Crisis cabinet

The week-long fuel crisis has added a new dimension to France's public discontent.

Philly Transit System Shut Down As Union Strikes

The union representing transit workers who are employed by SEPTA went on strike this morning, leaving nearly 1 million commuters stranded trying to figure out how to get to work this morning. At least the union didn't strike as the World Series was underway at Citizens Bank ballpark and allowed the fans to get to the games to see the Yankees take two of three. They waited until the fans got home to strike.

The walkout by Transport Workers Union Local 243, which began at 3 a.m. and caught commuters off guard, also affected Frontier Division buses in Bucks, Montgomery, and Chester counties.

But Regional Rail, Paratransit and other services outside the city continued to run.

Many riders turned to passenger Regional Rail trains, which were crowded and running about 30 minutes late during the morning rush hour.

With Philadelphia Public School students off today for a teachers' in-service, the city should be spared the full impact of the strike until tomorrow.

Still traffic appeared to be heavier than usual, especially on Broad Street, which was bumper to bumper in North Philadelphia.

As the first glimmer of dawn broke this morning, striking SEPTA workers huddled in small clusters around the Frankford Transportation Center as would-be passengers continued to arrive with no idea that nothing was operating.

Colleen Logan, 45, showed up at 5:20 a.m. to discover that she would not be able to ride the Market-Frankford El to her job as a waitress at Snow White Restaurant in Old City.

So what are the issues that forced the union to strike? Well, they didn't like the last deal on the table, which would have given a 11% salary increase over five years, 11% increase in pension contributions, an no increases in workers' contribution for health care.

Those are figures that quite a few unemployed folks would love to get. In fact, while Pennsylvania has a lower than the national unemployment rate of 8.3%, it has spiked from 5.9% in November 2008. The rate is much higher in Philadelphia, where the rate is 10.7%.

I'm sure that lots of those unemployed would love to have a job where they have benefits that outstrip anything seen in the private sector, and which offers job protections that add to the cost of doing business.

So, what was the union demanding? This:

Union workers, who earn an average $52,000 a year, are seeking an annual 4 percent wage hike and want to keep the current 1 percent contribution they make toward the cost of their health care coverage.

Maloney said SEPTA was offering an 11.5 percent wage increase over 5 years, with no raise in the first year, and increases in workers' pensions.

A 2005 SEPTA strike lasted seven days, while a 1998 transit strike lasted for 40 days.

Frank Brinkman, a union member who does electronic work on an elevated SEPTA train, was out on the picket line early Tuesday. He said he was concerned about pension issues and changes to work rules.

The union shouldn't expect to get much sympathy from commuters or those who are struggling to find jobs, and the timing doesn't help their cause either.

UAW Plotting Strike Against Atlantic City Casinos?

You have to hand it to the UAW. Their timing is absolutely impeccable. They're contemplating going on strike against several casinos in the course of trying to unionize casino dealers and floor workers at a time when Atlantic City is reeling from the recession and revenues are down significantly every year since 2006. Tax revenues from the casinos is also sharply lower, which means that state revenues are going to take a hit as well. Casino revenues are down more than 15% this year. The state can't afford Atlantic City's woes, and a strike would make things worse. From the Record:

The parent company of two Atlantic City casinos targeted for a possible dealers' strike began planning Monday to hire replacement workers in the event of a walkout.

Harrah's Entertainment Inc. said it started implementing a contingency plan that includes hiring replacement workers for any dealers who go out on strike.

Over the weekend, the United Auto Workers authorized a strike against Bally's Atlantic City and Caesars Atlantic City, but did not set a strike date. Previously, the union authorized a strike against the Tropicana Casino and Resort.

"We take their threats seriously," said J. Carlos Tolosa, the company's eastern regional president. "There are 14,000 employees in Atlantic City who rely on Harrah's for their livelihood, and we are not going to let the misguided tactics of the UAW interfere with our guests or the employees who are working hard to keep Atlantic City competitive this summer."

Company spokeswoman Alyce Parker said any actual recruitment and hiring would be done "when and if there is a strike."

A Tropicana executive did not immediately return a call seeing information on preparations for a possible strike.

The UAW is seeking the first-ever union contracts with 3,000 Atlantic City dealers, even though hotel and other service workers have been unionized for decades. In addition to Bally's, Caesars and the Tropicana, they also won a union representation election at Trump Plaza Hotel and Casino, but have not yet voted on a strike there.

The casinos are preparing for the strike contingency by planning to hire replacement workers so that they can continue gaming operations.

The casinos have already cut more than 3,000 jobs since last year.

And yet, many of those dealers have signed off on considering a strike:

UAW spokesman Dave Mellet said 97 percent of Caesars dealers and 100 percent of the slot technicians authorized a strike, as did 92 percent of Bally's dealers. That comes just months after dealers and slot technicians at the Tropicana Casino and Resort made similar decisions.

Look for Gov. Corzine to press the casinos to give in to the union demands, rather than see the strike take place.

So why are the workers looking to unionize? They are busy saying that the casinos are cutting back on their 401(k) and pension plans and other benefits. Welcome to the wonderful world of being an employee in a recession. The travel and tourism industry is heavily dependent on people freely spending their money, and casinos take a serious hit during recessions. The casino operators aren't going to expand benefits at a time like this, and cutting such benefits is one of their options other than cutting payroll. However, because the situation in Atlantic City is so bad, they're cutting payroll and cutting benefits.

"Nobody wants a strike, but we're going to stand up to enforce our rights," added Ed Hendricks, a Caesars slot technician for 15 years. "We have negotiated for almost two years, but instead of reaching an agreement, the company keeps cutting back. Harrah's has cut our 401(k) match, increased our benefit costs and laid off our fellow workers."

Steve Norton, a Missouri casino consultant and former vice president of Resorts Atlantic City, predicted many dealers would cross picket lines if a strike happened.

"You don't make that kind of threat unless you're prepared to go through with it," he said. "Any dealer with any intelligence would realize the industry is in horrible shape right now. It would be like signing a death warrant for your own job."

The problem for these workers is that if they go on strike, others will happily take their place and they'll be out of jobs.