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Editorial: Our Opinion - TriMet labor ruling opens door to change

TriMet is far from the only public agency in Oregon struggling to keep important services intact while also paying for very expensive employee health care and retirement plans.

As such, administrators and taxpayers in other local jurisdictions might find reason for hope in an arbitrator’s ruling last week that sided with TriMet instead of the union representing its workers.

That decision came from an arbitrator whose sympathies seemingly aligned with TriMet’s employees, more so than management. In reading arbitrator David Gaba’s opinion, it’s plain to see he agreed with the union on many issues contested in this protracted contract negotiation. It was only the sheer cost of the health care plan enjoyed by TriMet’s retired employees that tipped Gaba in favor of management’s final offer instead of the union’s final offer.

Although the arbitrator was troubled by many of TriMet’s arguments and tactics, he acknowledged that the agency’s health care plan for its unionized employees is extraordinarily generous and that its health care benefit for retired workers is unlike any found in the Northwest.

The ruling in favor of management’s final offer will save TriMet $12 million, with virtually all of that coming from reduced health care costs.

The savings are significant to TriMet’s riders because they mean the agency won’t have to make further budget cuts for the coming fiscal year. TriMet already has reduced service and increased fares to close a budget shortfall for next year. Even with the favorable contract changes, however, TriMet’s rising payroll and benefit costs will result in further service reductions in the future unless even more is done to reduce employee expenses.

For that reason, we hope the arbitrator’s decision leads to a more collaborative effort between TriMet management and union leaders to find mutually acceptable ways to reduce costs. We also believe the arbitrator’s ruling can serve as a reality test for other union negotiations occurring throughout Oregon.

Most public agency labor contracts aren’t subject to binding arbitration, as is TriMet’s pact. Yet, the underlying issues are universal: Public employee benefits that were agreed to years ago are no longer sustainable at a time when health care costs have escalated, when taxpayers are reluctant to provide additional operating funds and when the general economy isn’t rapidly expanding.

At the same time TriMet was awaiting this decision, Oregon Health & Science University was asking employees to pay 6 percent of their wages toward the cost of the Public Employees Retirement System. Some school districts were teetering on the verge of strikes to win concessions from union employees.

Oregon isn’t Wisconsin, where the fight on public sector benefits turned into a bitter, partisan brawl. After all, many public agencies in this state are led by Democrats — so it’s hardly a partisan matter when school boards, city councils or transit boards attempt to rein in costs in order to preserve public services.

Neither do the solutions have to be draconian or overly harmful to public workers. The TriMet contract, for example, will provide new employees with a 401(k)-style retirement plan, with the transit agency kicking in 8 percent of the employee’s salary. For most people, that’s a great benefit — and older employees still get to keep their pension plan.

The shifts in expenses are essential for Oregon to maintain the services the public needs and desires. As contracts are renegotiated throughout the state, public agencies and union employees will continue to battle — and, we hope, collaborate — on ways to curb escalating benefit costs.


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