INTEREST ARBITRATIONS

Decision Information

Decision Content

Jefferson Transit

And

Amalgamated Transit Union, Local 587, AFL-CIO

Interest Arbitration

Arbitrator:      Gary L. Axon

Date Issued:   10/01/1994

 

 

Arbitrator:         Axon; Gary L.

Case #:              11148-I-94-00239

Employer:          Jefferson Transit

Union:                ATU; Local 587

Date Issued:      10/01/1994

 

 

IN THE MATTER OF                                  )    

                                                                        )           P.E.R.C. NO. 11148-1-94-239

INTEREST ARBITRATION                       )

                                                                        )           NEUTRAL ARBITRATOR'S

            BETWEEN                                         )

                                                                        )           OPINION AND AWARD

AMALGAMATED TRANSIT UNION       )

            LOCAL 587, AFL-CIO,                     )           1993-95

                                                                        )

                                                Union,             )           COLLECTIVE BARGAINING

                                                                        )

                        and                                          )           AGREEMENT

                                                                        )

JEFFERSON TRANSIT,                              )

                                                                        )

Employer.                                                       )

 

HEARING SITE:                                                      Community Center

                                                                                    Port Townsend, Washington

 

HEARING DATES:                                                  June 13, 14, 15, 1994

 

POST-HEARING BRIEF DUE:                               August 2, 1994

 

RECORD CLOSED ON RECEIPT OF BRIEF:    August 5, 1994

 

REPRESENTING THE UNION:                             Jon Howard Rosen

                                                                                    Martin Garfinkel

                                                                                    Frank and Rosen

                                                                                    1200 Hoge Building

                                                                                    705 Second Avenue

                                                                                    Seattle, WA 98104

 

REPRESENTING THE EMPLOYER:                    Bruce L. Schroeder

                                                                                    Heller, Ehrman, White & McAuliffe

                                                                                    6100 Columbia Center

                                                                                    701 Fifth Avenue

                                                                                    Seattle, WA 98104-7098

 

ARBITRATION PANEL:                                         Curtis Stacey

                                                                                    Union Appointed Member

 

                                                                                    Richard E. Wojt

                                                                                    Employer Appointed Member

 

                                                                                    Gary L. Axon

                                                                                    Neutral Arbitrator

                                                                                    1465 Pinecrest Terrace

                                                                                    Ashland, OR 97520

                                                                                    (503) 488-1573

 

                                                Table of Contents

 

                                                                                                            Page

I.          Introduction                                                                            2

II.        Background                                                                            8

III.       Position of ATU                                                                      11

IV.       Position of Jefferson Transit                                     26

V.        Arbitrator's Award - Wages                                      42

VI.       Arbitrator's Award - Health Insurance                                 59

 

I.          INTRODUCTION

 

            This case is an interest arbitration conducted pursuant

to RCW 41.56.492 and the regulations promulgated thereunder.  The

parties to this dispute are the Jefferson Transit (hereinafter

"Employer"  or "Jefferson Transit") and the Amalgamated Transit

Union Local 587 (hereinafter "Union  or "ATU").  The parties to

this dispute have defined their working conditions pursuant to a

Collective  Bargaining  Agreement  since  1983.    The  previous

Collective Bargaining Agreement covered the period 1990 through

December 31, 1992.  The parties began negotiating for a successor

Agreement in the fall of 1992.  To the credit of the parties, they

were able to resolve all differences, except for wages and health

insurance for the 1993-95 Collective Bargaining Agreement.

            Jefferson Transit is an independent municipal corporation

formed in 1980 to provide transit services in Jefferson County,

Washington  Jefferson Transit provides county-wide services except

within the Olympic National Park and along the Pacific Coast.

            Jefferson Transit is governed by a five-member board

composed of three Jefferson County Commissioners and two Port

Townsend Council members.  Jefferson Transit provides a variety of

services including fixed route operations, route deviations, van

pools, ride-matching service, regional intercity bus interline

connection, local freight, and connections with the Washington

State ferries.   Jefferson County is one of the most physically

diverse and isolated counties in western Washington.  Jefferson

County is physically cut off from the metropolitan Puget Sound

counties by both Hood Canal and Puget Sound.   Its eastern and

western halves are separated by the rugged Olympic Mountains.  The

county has a total land mass of 1,805 square miles situated on the

northern portion of the Olympic Peninsula.  The population density

is one of the lowest in the state.  The most recent population

figures indicate there are only 23,500 people residing in the

Jefferson Transit  service  area.       Port  Townsend is  the  only

incorporated town in the county with a population of 7,740.

            The rural nature of the service area creates some unique

driving situations when compared with urban transit agencies.

Jefferson Transit operators are required to drive long distances

each day,  from over 100 miles to as many as 400 miles.   The

operators  are  required  to  drive  over  narrow  and  sometimes

treacherous roads during adverse weather conditions.  For example,

the Brinnon-to-Port Townsend run requires the operators drive over

Mt. Walker which is steep and narrow.

            The drivers have to contend with problem passengers who

are under the influence of alcohol or drugs.  Drivers often have to

deal with passengers who harass and threaten them while they are

operating the bus.  In addition, drivers have to deal with medical

emergencies while operating the buses in remote locations.

            Jefferson Transit routes have few designated stops for

passengers.  Drivers are expected to stop the bus when a person

flags the bus down seeking a ride.

            In sum, because of its large service area and small

population, Jefferson Transit's routes are characterized by long

stretches between pick-ups with few passengers on the bus at any

one time.

            The major economic and employment sectors in Jefferson

County  include  marine  trades,   pulp  and  paper,   forest

products/logging,  diversified  manufacturing,  government  and

tourism.  The major private sector employer is Port Townsend Paper

Corporation.  Government employment makes up a sizeable portion of

the Jefferson County employment opportunities.  Employment in the

manufacturing segment of the economy is declining while employment

in the service and retail trade industry is occupying a greater

percentage of the employment in Jefferson County.  Tourism is also

a source of income for the residents of Jefferson County.  The

population is growing at a moderate rate.  Jefferson County has

experienced  recent  immigration  of  people  as  the  result  of

"lifestyle moves from more urban areas throughout the country."

The downturn in the forest products industry and the closure of the

Strait of Juan de Fuca to salmon fishing have taken a toll on

Jefferson County's economy.   Un. Ex. 12, Er. Exs. 1.10 through

1.11.

            The Amalgamated Transit Union Local 587 represents 19

bargaining unit members at Jefferson Transit.  The bargaining unit

is composed of 15 drivers, 2 mechanics and 2 dispatchers.  Eight of

the 15 drivers are part-time operators.        The part-time drivers

average between 25 and 30 hours of work per week.  They are

guaranteed 15 hours per week.  There is one full-time and one part-

time dispatcher.  Jeffrey Hamm, the Employer's general manager,

testified  that  Jefferson  Transit  has  a  tight-knit  group  of

dedicated employees who are "the heart of this organization."

            The hearing in this case took three days for the parties

to present a substantial amount of testimony and a voluminous

number of exhibits.  The majority of the hearing time was consumed

on the issue of the appropriate jurisdictions with which to compare

Jefferson Transit for the purpose of establishing the wage and

insurance benefits to be included in the 1993-95 contract.  The

hearing  was  recorded  by  a  court  reporter  and  a  transcript

consisting of 619 pages was made available to the parties and the

arbitration panel for the purpose of preparing the post-hearing

briefs and the Award.  Testimony of witnesses was taken under oath.

At the hearing the parties were given the full opportunity to

present written evidence, oral testimony and argument.  The parties

provided the Arbitrator with substantial written documentation in

support of their respective positions.  Comprehensive and lengthy

post-hearing  briefs  were  submitted  to  the  Arbitrator  with

accompanying interest arbitration awards previously issued in the

state of Washington.

            The approach of this Arbitrator in writing the Award will

be to summarize the major and most persuasive evidence and argument

presented by the parties.  After introduction of the issue and

positions of the parties, I will state the basic findings and

rationale which caused the Arbitrator to make the Award on the wage

and insurance issues.

            The parties filed their post-hearing written briefs in a

timely manner and the record was closed on August 5, 1994.  Because

of the extensive record in this case the parties agreed to an

extension of the statutory requirement that a decision be issued

within thirty days of the close of the record.  On September 22,

1994, the neutral Arbitrator conducted a telephone conference call

with the party appointed members of the arbitration panel to

discuss the evidence and argument contained in the record of this

case.  The comments and observations of the party appointed panel

members were of great assistance to the neutral Arbitrator in

preparing his findings of fact and Award on the issues presented

for interest arbitration.  The written decision is solely the work

of the neutral Arbitrator.

            This Arbitrator carefully reviewed and evaluated all of

the evidence and argument submitted pursuant to the criteria

established by RCW 41.56.492.  Since the record in this case is so

comprehensive, it would be impractical for the Arbitrator in the

discussion and Award to restate and refer to each and every piece

of evidence and testimony presented.  However, when formulating the

Award  for  the  1993-95  Collective  Bargaining  Agreement,  the

Arbitrator did give careful consideration to all of the evidence

and argument contained in the record of this case.

            The  statutory  standards  and  guidelines  to  aid  the

Arbitrator in reaching a decision on the issues in this case are as

follows:

 

            (a)        The  constitutional  and  statutory

            authority of the employer;

 

            (b)        Stipulations of the parties;

 

            (c)        Compensation  package  comparisons,

            economic  indices,  fiscal  constraints,  and

            similar factors determined by the arbitration

            panel to be pertinent to the case; and

 

            (d)        Such other factors, not confined to the

            foregoing, which are normally or traditionally

            taken into consideration in the determination

            of wages, hours, and conditions of employment.

 

II.        BACKGROUND

 

            This case comes to interest arbitration pursuant to the

action of the Washington Legislature in 1993 extending the right to

interest arbitration to employees of transit agencies throughout

the state of Washington.  The differences in the wording of the

statute pertaining to transit employees and the statutes covering

police and firefighter labor disputes were the subject of some

conflict between the parties.  The Arbitrator will discuss this

issue in his findings and Award.

            Article V,  Section  2  established a base wage rate

effective January 1, 1992, as follows:

 

            Classification                                      Wage Rate & Effective Date

                                                                                    1/1/92

            Dispatcher                                                      $10.60

            Driver                                                             $10.50

            Mechanic                                                        $12.35

            Transit Operator Trainee                              $ 5.00

 

 

            In a memorandum of agreement the parties agreed to modify

Article V, Section 2 to establish two mechanic positions.  The

January 1, 1992, rate for a lead mechanic was set at $13.91 per

hour and for the maintenance service worker the rate was set at

$10.30 per hour.

            The 1990-92 Collective Bargaining Agreement also provides

for longevity pay for employees at two different levels.  Employees

with 61 through 120 months of service are able to accrue a maximum

of $30 per month in longevity pay.  Employees with 121 months of

service or more accrue a maximum monthly amount of $60.

            Article VII addresses the issue of the insurance program.

The Employer is currently contributing less than the $185 per month

maximum toward employee insurance.  The $185 per month is adequate

to cover the cost of the employee only insurance.   The total

premium cost for 1992 was $34,647 and $36,490 in 1993.  Er. Ex.

5.3.      The parties are at impasse on the amount of the Employer

contribution toward health insurance premiums.

            The  negotiation  process  resulted  in  a  number  of

agreements on the issue of leaves, probationary period, seniority,

grievance procedure etc.  The Employer calculated the financial

impact of the tentatively agreed items over the three-year duration

of the contract at $40,778.  The parties also agreed to modify the

structure of the salary schedule to provide a wage progression.  In

essence, the new employee would have to work five years to attain

the maximum level on the salary schedule.  The parties disagree

over the percentage to be applied at the various steps until the

maximum salary is reached.  The 1993 budget projected total revenue

of $1,323,627.  Er. Ex. 3.13.  It cost the District $382,019 to

fund the wages required under the 1992 contract.  With FICA and

PERS an additional $58,181 was added to the cost to fund the salary

schedule.

            This is the first interest arbitration the parties have

utilized to resolve an impasse over negotiations for a Collective

Bargaining Agreement.  The major focus of the parties on the wage

issue was comparability.  The parties expressed at the arbitration

hearing widely divergent opinions over which agencies should be

utilized  as  comparators  for  establishing  the  wage  level  at

Jefferson Transit.  The Employer submitted a list of seven transit

authorities from within the state of Washington as their list of

comparables.  All of the agencies on the Employer's list operated

in non-metropolitan areas.  On the other hand, the Union compiled

a list of sixteen transit agencies in Washington and Oregon for its

wage comparison study.  In addition, Jefferson Transit developed an

alternative list of comparables which included some local private

as well as public agencies it believed were relevant to the

determination of wages for the members of this bargaining unit.

Five transit agencies were common to the lists offered by the Union

and the Employer.

            In its post-hearing brief, the Union revised its list of

comparators to seven transit agencies in the state of Washington.

The five agencies which are common to both lists are as follows:

 

                                                Pacific Transit

                                                Valley Transit

                                                Twin Transit

                                                Cowlitz Transit

                                                Pullman Transit

 

The Arbitrator holds that the five agencies shared in common by the

two lists should be contained on the ultimate list of comparables

to be  utilized  in measuring wages  for the members  of  this

bargaining unit.

 

III.       POSITION OF ATU

 

            A.        Background

 

            The Union proposed a wage progression which would start

a new hire at 85% of the maximum rate rising to 100% at Step F

after  five  years.    Current  employees  hired  prior  to  the

ratification of this Agreement would be grandfathered at the

maximum rate.

            The Union proposed effective January 1, 1993, a wage rate

as follows:

                        CLASSIFICATION                                       WAGES

 

                        Dispatcher                                                      $12.94

                        Transit Operator                                            $11.55

                        + Lead Mechanic                                           $15.30

                         Mechanic                                                       $13.58

                         Maintenance Service Worker                      $11.33

                         Transit Operator Trainee                             $ 5.00

 

The above salary represents a 10% across-the-board increase in

wages.

            The Union also proposed salary increases for the second

and third years of the contract as follows:

 

            Effective January 1st, 1994, the base wage for

            all Employees will increase by a minimum five

            percent (5%).  Should the aggregate percentage

            increase of sales and use tax received by

            Jefferson Transit in 1993 as compared to 1992

            exceed five percent  (5%),  Employees' wages

            will increase by an equal amount up to a

            maximum of ten percent (10%).

 

            Effective January 1st, 1995, the base wage for

            all Employees will increase by a minimum five

            percent (5%).  Should the aggregate percentage

            increase of sales and use tax received by

            Jefferson Transit in 1994 as compared to 1993

            exceed five percent  (5%),  Employees' wages

            will increase by an equal amount up to a

            maximum of ten percent (10%).

 

 

A Union proposal for a salary increase effective January 1, 1996,

was withdrawn from arbitration on June 13, 1994.

 

                        The Union's proposal on insurance was stated:

 

            ARTICLE VII (FORMERLY VII) - HEALTH INSURANCE PROGRAMS

 

SECTION I.   MEDICAL, DENTAL, VISION AND LIFE INSURANCE PROGRAMS

 

            A.        The EMPLOYER agrees to provide a medical insurance

            program,  including  chiropractic  coverage,  a  dental

            insurance program, a vision insurance program, and a life

            insurance program covering all Employees,  and their

            dependents.   The cost to the Employer for monthly

            premiums shall be as follows:           

 

                        1994    100% up to $160 and 75% thereafter

                        1995    100% up to $185 and 75% thereafter

 

            C.        The EMPLOYER will establish a health benefit account

            for each Employee.   On January 1st of each year the       

            EMPLOYER will deposit five hundred dollars ($500.00) into

            the  account  of  each  Employee.    At  the  Employee's

            direction the funds in this account may be directed or

            held for the  following reason:   Employee's monthly

            premium share; Employee's and family's deductible; or

            required Employee copayments.  Account balances at the

            end of the year will roll over to the next year, however,

            the total accumulated in the account cannot exceed the

            total  of  the  individual  employee's/family's  gross

            copayment and deductible liability.  The account is for

            health benefits coverage only.

 

            New SECTION 4.  NOTIFICATION OF PROPOSED CHANGES

 

                        No change in any benefit levels shall be made unless

            first reduced to writing and negotiated with the UNION.

 

            The  Union  believes  that  its  proposal  is  fair  and

appropriate based on the statutory factors.   In addition, the

Union's proposal asks the Employer to make good on repeated

assurances from the past.  According to the Union, the Employer has

acknowledged that its wages and past wage increases were low and

led its employees to believe their earnings would improve once the

Jefferson Transit established itself.   The Union submits that

fourteen years after the founding of this agency it is a mature

enterprise with an excellent fleet of vehicles and facilities.  The

Union concludes that the agency is now in a position to pay its

employees a decent wage on which they can support themselves and

their families.

            It is the position of the Union the Employer's proposed

wage increases of 4%, 3% and 2% over the duration of this contract

are minimal, and not in keeping with the promise to improve the

wage payments when the agency matured.  The Union also disputes the

Employer's position on the health insurance issue because it will

not provide adequate protection against future premium increases.

The Union also seeks a guarantee that benefit levels will not be

changed without first negotiating such changes with the Union.

            Turning to the statutory factors, the Union asserts the

guidelines contained in RCW 41.56.492 are similar to the statutes

covering police and firefighter labor disputes.  According to the

Union, no definitive legislative purpose can be discerned from the

differences in wording that exists between the two statutes.  The

Union submits RCW 41.56.492 will not require any departure from the

analysis that is routinely undertaken by interest arbitration

panels in police and firefighter disputes.

            Responding to the Employer's claim that the use of the

phrase "compensation package comparisons, " reflects the legislative

intent to focus the comparisons on the local labor market, the

Union believes the legislative purpose in this choice of words is

to allow greater  flexibility in the  sources of comparisons.

Further, the Union asserts the Employer overstates the significance

of the phrase "fiscal constraints" which appears in the controlling

statute for transit employees.  Since both statutes contain the

"catchall" provision permitting reference to factors that have

traditionally been used in collective bargaining, the Union submits

that "fiscal constraints" is one such traditional factor.   The

Arbitrator should apply the general interest arbitration principles

to this case that will generate over time the rules to be used in

future transit agency interest arbitration cases.

            In sum, the statutory guidelines favor the Union's wage

and health insurance proposals over those of Jefferson Transit.

 

            B.        Compensation Comparisons

 

            The Union proposed a list of comparators including the

five that are common to both, plus Grays Harbor Transit and Clallam

Transit.  According to the Union, Grays Harbor Transit and Clallam

Transit are appropriate comparators in this case because they are

located in adjacent, largely rural counties that are more alike

than different than Jefferson County.  While Grays Harbor Transit

and Clallam Transit serve counties of larger population, they are

deemed to be "rural" systems by the Washington State Department of

Transportation.   Er. Ex. 3.3.  Like the five mutually selected

comparators, neither of these two agencies serve a metropolitan

service area.

            Moreover, the number of employees and budgets are more

closely related to Jefferson Transit than they are to the mid-size

transit  agencies  utilized  on  the  Union's  original  list  of

comparators.   From the Union's point of view the geographical

connection between the two transit agencies from Clallam and Grays

Harbor  counties  warrants  their  inclusion  in  the  list  of

comparators.  A map of Washington shows that Jefferson County is

sandwiched between Clallam County on the north and Grays Harbor on

the south.  With respect to Clallam Transit, this geographical link

has led to operational connections between Jefferson Transit and

Clallam Transit.

            Additionally,  there  is  also precedent  in  Jefferson

Transit for using Clallam Transit as a basis for comparison in

determining salaries.  General Manager Hamm testified that when he

reclassified  the  wages  for non-represented Jefferson Transit

employees in 1990,  he examined the wage structure at Clallam

Transit.    The  Union reasons  that  if  Clallam Transit  is  an

appropriate comparator for determining managerial salaries, there

is no reason to exclude it as a comparator of its unionized

employees.   The Union submits the addition of Grays Harbor and

Clallam Transit  to  the  list  of  the  five  mutually  selected

comparators will create a balanced list of seven jurisdictions with

which to base the wages at Jefferson Transit.

            The Union objects to the Employer's inclusion of Skagit

Transit and Mason Transit to the list of the five agreed-on

comparators.  The Union averred there are three basic reasons for

exclusion of these two agencies from the list of comparators.

First,  neither of these agencies were in existence when the

negotiations began between the parties to this contract in the fall

of 1992.  Mason Transit began operations in December 1992, and

Skagit did not begin to run busses until some months after November

1992.  If interest arbitration is considered an extension of the

bargaining, it would be illogical to chose two agencies that did

not even exist at the time negotiations began.

            Second,  none of the hourly employees of  these two

agencies are represented by a union.  The inclusion of these two

non-unionized agencies along with the five unionized agencies will

artificially depress the compensation package averages.

            Third, the employees of Jefferson Transit were told at

the start up of this agency that transit operations are an "iffy

proposition" and that wage increases must be kept to a minimum

until the agency becomes more established. Applying this principle

to Skagit Transit and Mason Transit, the Arbitrator should conclude

it is inappropriate to make comparisons between a mature agency

such as this Employer with two new start-up operations.

            The Union next argues the Arbitrator should reject the

Employer's attempts to use as comparators local school districts,

auto repair shops or Jefferson County and city of Port Townsend.

All of these proposed comparators are non-transit employers.  The

record  before  this  Arbitrator  does  not  contain  sufficient

information in order to determine whether they are truly comparable

employers.

            It is also the position of the Union that school district

bus drivers are not properly comparable in mission or working

conditions to the work performed at Jefferson Transit.  School bus

drivers are part-time drivers who work 180 days each year.  The

attempt by the Employer to utilize mechanics working at local auto

repair  shops  as comparators  should  also be rejected by the

Arbitrator, as most of the shops are small, non-unionized and are

for profit enterprises.

            Regarding the dispatchers working for Jefferson County

and for Port Townsend, the record reveals nothing about the working

conditions and/or job requirements for these dispatchers.   The

dispatchers employed by Jefferson Transit perform substantial

supervisory duties which justifies a higher rate of pay in light of

the services performed.

            Lastly, the Union claims that with seven transit agencies

from around the state, there is no reason to include non-transit

entities in the list of comparators because they share little in

common with Jefferson Transit beyond addresses in Jefferson County.

            The Union prepared a chart of the 1994 wage rates for

operators which read:

 

                                    1994 Operator Wage Rates

 

Transit Authority                                           Wage Rate

Cowlitz Transit                                               $ 14.69

Grays Harbor Transit                                    $ 13.70

Pullman Transit                                              $ 13.60

Clallam Transit                                              $ 13.29

Twin Transit                                                   $ 12.25

Valley Transit                                                $ 11.00

Pacific Transit                                                $ 10.98

           

Average Without Jefferson Transit                                      $ 12.79

 

With Jefferson Transit Wage Proposal

for 1993 and 1994 (cumulative total of 7%)             $ 11.25

 

With Union Wage Proposals for 1993 and

1994 (cumulative total of 17.9%)                                          $ 12.46

 

            Based on this wage comparison, the Arbitrator should

conclude the Union's wage proposal is fair and equitable. Adoption

of the Union's proposal would create a wage rate that is still

$0.33 an hour below the average of the seven comparators.  On the

other hand, the Employer's proposed wage rate is more than $1.50 an

hour, or nearly 12% below the average.

            The  Union  also  objects  to  the  Employer  including

"longevity pay" as part of the hourly wage rate when making its

comparison studies.   According to the Union, the inclusion of

longevity pay into the hourly rate artificially inflates the value

of the Employer's proposals.   Longevity pay is provided in a

separate provision of the contract and is expressed as a monthly

bonus, not as part of the hourly rate.  The Employer recognizes

this because for the first time Jefferson Transit has included a

new  "Step G" on its proposed wage progression grid.

            It is also the position of the Union that longevity pay

is intended to be an ancillary benefit similar to vacation pay,

sick pay, and severance pay.  The parties have agreed to add a

fourth week of vacation for employees with between ten and fifteen

years of service in exchange for eliminating the $30 increase in

longevity pay at ten years of service.  Since not all members of

the unit enjoy longevity pay, it is inappropriate to include them

in the wage comparison.

            The Union calculated the wage comparison based on the

five mutually selected comparators.    The  study revealed the

following:

 

                                    1994 Operator Wage Rates

 

            Transit Authority                                           Wage Rate

            Cowlitz Transit                                               $ 14.69

            Pullman Transit                                              $ 13.60

            Twin Transit                                                   $ 12.25

            Valley Transit                                                $ 11.00

            Pacific Transit                                                $ 10.98

 

Average Without Jefferson Transit                          $ 12.50

 

With Jefferson Transit Wage Proposal

for 1993 and 1994 (cumulative total of 7%) $ 11.25

 

With Union Wage Proposals for 1993 and

1994 (cumulative total of 17.9%)                              $ 12.46

 

            The calculations show that wages for employees in this

agency will still remain far below the average rate of the five

mutually agreed on comparators.

            The Union believes that the wage increases for the

operators should set the pattern for all job classifications except

for dispatchers.   The Union proposes the dispatcher wage rate

increase from $10.66 an hour to $12.94 an hour.  The 22% increase

for the dispatchers as opposed to the 10% increase for the other

classifications, is justified in light of the dispatchers' high

level of responsibilities  According to the Union, the dispatchers

in this unit have additional responsibilities that are analogous to

first-line supervisors at other transit agencies.   Given these

supervisory-type duties, the Union submits the dispatchers have

earned a substantial increase in the rate of pay.

            The  Union  argues  that  its  concession  on  the  wage

progression lends further support to its wage proposal.  The wage

progression will save the Employer money over the long term.  This

significant concession merits consideration in the setting of the

wages during the duration of this contract.  When the concession on

the wage progression issue is combined with the Employer's proposed

2% increase for 1995, the Arbitrator should conclude the Employer's

proposal is plainly inadequate.

 

            C.        Economic Indices

 

            The Union maintains that the overall economic portrait of

Jefferson County that emerges from the record evidence in this case

is of a vibrant and growing county that is capitalizing on its

advantages  to escape the  economic down-turns of other rural

resource-based communities.  Un. Ex. 12.  The evidence shows that

median family income has risen dramatically since 1980.  Un. Ex.

14.  Further, Jefferson County has become a very expensive place to

live, with high housing costs and tax increases needed to fund

public work projects to absorb the new and expanding population and

businesses.    Jefferson  County's  housing  affordability  index

demonstrated for both January 1993 and January 1994, that Jefferson

County has the worst housing affordability index figures for any of

the other measured 12 Washington counties.  While median family

income  and  costs  of  living  in  Jefferson  County  have  risen

dramatically, the wages for the members of this bargaining unit

have remained depressed from the beginning of the Employer's

operation.

            Responding to the reliance of the Employer on the cost of

living  indexes,  the  Union  submits  these  indexes  are  not

determinative.   First,  Jefferson Transit management has  long

recognized their employees have received only minimal raises over

the years on the assurance that employee sacrifices would be

recognized once the agency became established.  Second, Jefferson

County's economy is sound and likely to improve.  The Union reasons

that it is appropriate that employees in this bargaining unit be

able to make up some of the ground they have lost over the last

decade.

 

            D.        Ability to Pay

 

            It is clear from the evidence in this case that this

agency can easily afford the increases contained in the Union's

wage proposal.    The  agency has  in  fact  enjoyed substantial

surpluses in every year that is documented in the record.  In 1988,

the Employer renovated and moved into its new headquarters.  The

surplus achieved in 1993 of over $67,000 is greater than the total

cost of the Union's proposal for 1993,  as calculated by the

Employer.  The Employer estimated the total incremental cost of the

Union's wage proposal for 1993 at $50,752.  Er. Ex. 5.1  Thus, the

1993 surplus exceeds by $17,000 the total cost of the Union's wage

proposal for 1993

            The Employer has made conservative financial assumptions

and currently maintains substantial reserves in both the general

fund and capital fund to provide significant financial cushions

against possible future economic downturns.   Union Exhibit 34

indicates the general fund budget currently maintains a reserve

amount of over $515,000.  In that same exhibit the capital fund

budget currently maintains a capital replacement fund of $967,650.

This sum represents a significant percentage of the total annual

revenues from 1993 of $1,396,840.

            The Union notes that in the past the Employer has been

extremely successful in obtaining federal and state monies for the

purpose of replacing vehicles.  Union Exhibit 32 shows that over

60% of the cost of the vehicles it presently owns came from grant

money.  Jefferson Transit has paid out of its own monies a total of

$431,313 for all of the vehicles it presently owns.  This means

that the capital replacement fund currently contains more than

twice the amount this Employer has spent over the last ten years to

purchase all of its vehicles.

            In its offer, the Union has proposed a floor of a 5%

increase in each of the last two years of the three-year contract,

plus an additional increase tied to the percentage increase in the

sales and use tax received by Jefferson Transit.  According to the

Union, the linking of employee salaries to the sales and motor

vehicle excise tax receipts is a creative proposal which merits

adoption.   The principle that the level of employees' salaries

should be linked to the economic health of Jefferson Transit is

worthy of recognition in the Collective Bargaining Agreement.  In

sum, there is no basis to conclude that there exists "financial

constraints" that would preclude funding the Union's proposals.

 

            E.         Other Factors

 

            The members of this bargaining unit perform well under

difficult and stressful conditions.  They operate busses often on

narrow and sometimes treacherous roads. Adverse weather conditions

make some of the routes dangerous to drive during the winter

months.

            The Union alleges that operators have to deal with

problem passengers and medical emergencies in remote conditions far

removed from any type of assistance.   There are some locations

where radio contact with the dispatch center is practically non-

existent.  The absence of designated stops for passengers makes for

difficult driving conditions for bus operators.

            The Union avers that the stresses and challenges faced by

the members of this bargaining unit are as significant and daunting

as faced by bus drivers anywhere.  The Arbitrator should reject any

attempt by the Employer to justify lower wage increases on the

assumption that driving a bus on country roads requires less skill

and is less difficult than it is on city streets.

            The Union next claims that Jefferson Transit has given

its general manager wage increases that are far in excess of those

received by bargaining unit employees.  During the period between

1989 through 1994, the general manager received a gross increase of

70%.  His increase for 1994 was 8.5%, which is almost three times

greater than the 3% increase which the Employer has offered the

rank-and-file for 1994.  It would be grossly unfair to award the

general manager a percentage increase that is so much greater than

the one proposed for the rank-and-file employees of this unit.

 

            F.         Health Insurance

 

            The Union argues that its proposal for health insurance

is modest and should be chosen over the Employer's proposal.  The

Employer has calculated the financial difference and impact between

the two proposals as a total of $5,000 for 1994 and 1995.  Er. Exs.

5.5, 5.10.  The Union's concern is that the contract ensure that

employees will not have to pay any portion of their own premium

during the life of the contract, and to enable employees to provide

dependent coverage for members of their families.  The goal of full

coverage is inapplicable to 1994 since the actual monthly premium

cost is less than the Employer has proposed to pay.

            Turning to the 1995 rates, the Employer has assumed that

premiums for each year for each employee will increase only 7% to

a total of $151.05 per employee.  Given the 7% assumption, the

Employer's proposal of a payment of $152 per month would ensure

complete coverage for the individual employees.  In contrast to the

Employer's assumption that premium cost will increase 7%, the Union

believes that it is more likely a premium increase will be higher

than 7%.  In that event, the employees would be required to pick up

40% of the cost above $152 a month.  It is for this reason that the

Union proposes Jefferson Transit provide full payment of the

premium up to the maximum of $185 per month.

            On the subject of dependent coverage, the Union proposal

represents a modest attempt to assist employees who need insurance

coverage for their dependents.   The Employer offers to pay, in

effect,  86% of the cost of the dependent coverage, while the

Union's proposal offers a level of assistance at 88% or 93%

depending upon the level of coverage.

            The Union's proposal is supported by the comparators.

Based on the information contained in Union Exhibit 10, all transit

agencies  except  Cowlitz,  pay  100%  of  the  employee  cost  of

insurance.   Four of the seven agencies pay 100% of dependent

coverage.  The Union's proposal is supported by the evidence from

comparator jurisdictions.

            The final proposal of the Union is that health benefits

remain constant through the end of the contract unless both parties

agree to change the benefit package.  It makes no sense for the

Union to agree on a health insurance premium and leave the Employer

free to decrease the level of benefits.   The Union's proposal

should  be  adopted  to  protect  employees  against  unilateral

alterations in their benefits package through the end of the

Agreement.

            For all of the above stated reasons, the Union's final

proposals on wages and health benefits should be adopted by the

Arbitrator.

 

IV.       POSITION OF JEFFERSON TRANSIT

 

            A.        Background

 

            The Employer proposes a 4% across-the-board adjustment

for all represented personnel effective January 1,  1993.   In

addition, for employees with five years or more of service a Step

G would be added to the wage progression reflecting the hourly

equivalent of the longevity premium contained in the previous

Collective Bargaining Agreement of $0.17 per hour.  For 1994, the

Employer would increase wages by 3%, effective January 1, 1994.

During the third year of the contract the Employer would increase

the salary schedule by 2%, effective January 1, 1995.

            Effective with the date of the Award, Jefferson Transit

would pay up to a maximum of $145 toward health benefit premiums

plus 60% of the excess cost of such premiums over $145.  In 1995,

Jefferson Transit would pay $152 towards the health benefits

premium plus 60% of the excess over $152.  Jefferson Transit would

also  establish  a  health  benefits  account  for  each  eligible

employee.  Jefferson Transit would deposit $500 into the account of

each eligible employee in 1994 and 1995.   At the employee's

discretion the funds in this account could be directed or held for

the following purposes:

 

            (1)  applied toward  the  employee's monthly

            medical benefits premium; (2) applied to the

            individual's or family's deductible; or (3)

            applied to the co-payment requirement.   The

            balances left in the account at the end of

            each year may be rolled over to the next year.

            The total accumulated in the account cannot

            exceed the total of the individual's (and/or

            family's) gross co--payment liability plus one

            year's total deductible (individual's and/or

            family's).  The account is for health benefits

            coverage only.

 

            Step G would be reserved for employees with over five

years of service and include the longevity premium of $0.17 per

hour.  The top two steps on the Employer's proposal would be as

follows:

 

            JEFFERSON TRANSIT'S PROPOSED WAGE PROGRESSION

                                    (using proposed 4%, 3%, 2% increase)

 

                                                                        Step F                         Step G

                                                                        Over 4 yrs                  Over 5 yrs.

                                                                        (100%)                        (w/longevity)

 

                                                                                    OPERATOR

            1993                                                    $10.92             $11.09

            1994                                                    $11.25             $11.42

            1995                                                    $11.47             $11.64

 

                                                                                    DISPATCHER

            1993                                                    $11.02             $11.19

            1994                                                    $11.35             $11.52

            1995                                                    $11.50             $11.75

 

                                                                                 LEAD MECHANIC

            1993                                                    $14.47             $14.64

            1994                                                    $14.90             $15.07

            1995                                                    $15.20             $15.37

 

                                                                                    MECHANIC

            1993                                                    $12.84             $13.01

            1994                                                    $13.23             $13.40

            1995                                                    $13.49             $13.66

 

                                                            MAINTENANCE SERVICE WORKER

            1993                                                    $10.71             $10.88

            1994                                                    $11.03             $11.20

            1995                                                    $11.25             $11.42

 

            Jefferson Transit  submits that  its wage and health

insurance offer over the three years of this contract coincides

with  the  requirements  of  the  interest  arbitration  statute.

Jefferson  County  is  cutoff  from  the  central  Puget  Sound

metropolitan area and can be characterized by its centralized local

labor market which has little manufacturing base.  The downturn in

the timber business,  financial losses in the paper industry,

reduced number of tourists and the closure of the salmon fishing

have all taken a toll on Jefferson County's economy.  Jefferson

Transit's  finances  have  not  been  immune  from this  economic

downturn.

            The Employer begins by noting that interest arbitration

is an extension of the collective bargaining process rather than a

substitute for that process.   The Arbitrator is required to

consider all of the factors set forth in the statute.  The process

of applying the statutory factors is multidimensional, rather than

a simplistic process of looking only at what other jurisdictions

pay their transit employees.   The Union's approach is flawed

because it focuses solely on what vastly larger transit agencies

pay.  On the other hand, Jefferson Transit's approach concentrates

on all of the statutory factors.

            Jefferson Transit maintains that interest arbitration for

transit employees includes some unique standards or guidelines

governing the establishment of wages and benefits for transit

employees.   The statute  governing uniform personnel interest

arbitration factors include a reference to like personnel of like

employers of similar size on the west coast of the United States,

and a reference to the average consumer prices for goods and

services.   These two factors are not included in the transit

interest arbitration statute.

            The  legislature  adopted  language  which  refers  to

"compensation  package  comparisons,  economic  indices,  fiscal

constraints, and similar factors determined by the arbitration

panel to be pertinent to the case."  The Employer explains that the

difference in language places heighten importance on developments

within an  employer's  local  labor market,  as well as budget

restrictions faced by the employer.  According to this Employer,

the use of the phrase "compensation package comparisons" reflects

a broadening of the definition of comparators to include wages paid

by private sector employers and other public sector employers in

the same local labor market.   In addition, the new language is

narrower to the extent that it places the focus locally rather than

on developments in the far-flung reaches of the west coast.  Thus,

the Employer has developed its comparison studies to. reflect the

wages paid in the local labor market and by fiscal constraints

which Jefferson Transit must face.

            The tentative agreements already reached by the parties

will cost Jefferson Transit approximately $40,778 over the life of

this contract alone.   The ATU's proposals for substantial wage

increases and large health care cost increases must be viewed in

the context of the items the Employer has already tentatively

agreed to which will require the expenditure of substantial sums of

money.

 

            B.        Compensation Comparisons

 

            Although not technically a stipulation, the reality is

five common comparables are included on the proposed list of

comparables submitted by both parties.  Jefferson Transit urges

that the five comparables shared in common on the two lists should

be at a minimum contained on the ultimate list of comparables.  To

the list of five mutually acceptable comparators, the Employer

would add Mason Transit and Skagit Transit. Both of these agencies

are within the population bands when budgets and number of

employees are considered.  The Employer also points out that both

agencies operate on the Olympic Peninsula in an area that is

substantially similar to Jefferson County.  In addition, Jefferson

Transit ties its routes to Mason Transit in its southern reaches of

Jefferson County and intends to expand the connection in the next

few years.  With the addition of Mason Transit and Skagit Transit,

the end result will be five comparables from western Washington and

two from eastern Washington. All of these agencies operate in non-

metropolitan areas.

            The Employer asks the Arbitrator to reject the Union's

two arguments against the inclusion of Mason Transit and Skagit

Transit in the list of comparables.  The Union first argued that

they are newly formed agencies and therefore should be rejected.

It is the position of the Employer that both of these agencies have

been well received and ridership counts have exceeded even the most

liberal estimates.

            The second challenge to the use of these two agencies by

the Union was they were non-union employers.  There is absolutely

no support for the exclusion of comparable agencies simply because

they do not operate under union contracts.

            The Employer also argues that its proposed expanded

comparables reflect the weight which should be applied to the local

labor market under the new statutory criteria. The dynamics within

the local labor market are crucial in determining wages.  Thus,

school bus drivers within the local area are correctly included in

the list of comparators.  The same is true for dispatchers.  When

making the comparison for dispatchers, the Employer properly made

a comparison between the dispatchers employed by the city of Port

Townsend and the Jefferson County Sheriff's Department.

            Turning to the mechanic classification, Jefferson Transit

added the primary heavy diesel repair operations in its service

area.  This includes both private and public sector groups who

employ mechanics in the local area.

            In sum, the information concerning wages paid for similar

positions in the immediate local labor market is directly relevant

to establishing "compensation package comparisons."

            With respect to the Union's proposed list of comparables,

the Employer submits it is a "result oriented combination of

dissimilar agencies."  The Union did nothing to establish criteria

by which to measure potential comparables. The representatives for

the Union conceded its approach was "purely subjective."  Tr. p.

240.

            Moreover, the Union relied on data that was not even

current.   This reliance on outdated data further skewed the

information presented to the panel and heightened the subjectivity

underlying the Union's approach.  Further, the Union adopted the

unique factor of sole reliance on information contained in the ATU

International's data base.  By utilizing this approach, incorrect

information and comparators were utilized which were not even close

in population and size to Jefferson Transit.

            The largest agency on the Union's comparable list has an

employee count of 266 which is more than 950% larger than Jefferson

Transit.  The same figures hold true on the size of the budget.

Jefferson Transit's budget in 1993 was 1.3 million dollars.  The

average  budget  of  the  ATU's  comparables  was  7.4  million.

Fundamental  fairness  compels  that  wages  be  determined  by

consideration of agencies who operate under similar dynamics.  Size

is a crucial dynamic in any wage determination.

            The Arbitrator should reject the inclusion of Clallam

Transit on the list of comparables.  Although Clallam Transit is

located on the Olympic peninsula and does exchange passengers with

Jefferson Transit at Sequim, the similarities end there.  In 1993

Clallam Transit transported 693,413 passengers in comparison to

Jefferson Transit's 177,000.  The daily ridership averages 2,500

persons at Clallam Transit verses 500 at Jefferson Transit.  The

Clallam Transit budget is 3.7 million dollars.  It has 60.8

employees compared to Jefferson Transit with 25.3 FTEs.  The

service area is three times larger than that of Jefferson Transit.

Thus, the Arbitrator should eliminate Clallam Transit from the list

of comparables.

            The Employer also challenges the use of Grays Harbor

Transit as a comparable.   The service area population of Grays

Harbor Transit is 66,500, almost three times the size of Jefferson

Transit.  Grays Harbor Transit is dissimilar in that it has routes

serving far-flung areas of southwestern Washington.   The Grays

Harbor  Transit  is  not  a  public  transportation  benefit  area

corporation, and is also in the ambulance business.  Grays Harbor

Transit should not be included on the list of comparables because

it is a dissimilar agency.

 

            C.        Wage Issue

 

            Jefferson Transit submits  its proposal is  fair and

supported by the statutory factors.  The compensation comparators

with like employers reveals that Jefferson Transit's proposal would

put it at the median of its comparables.  In addition, Jefferson

Transit's proposal is  fair in light of the basic trends in

collective  bargaining  agreements  throughout  the  nation  and

throughout Jefferson County.   With the current sustained low

inflation, employees will gain ground on inflation over the course

of this contract.  According to the Employer, the bargaining unit

members have done better than inflation over the last decade.

Jefferson Transit also submits that its proposal is fair when the

wage increases offered in the local labor market and the less than

rosy financial condition of the Jefferson County economy is taken

into account.  Jefferson Transit calculated that its proposal would

place the operators well above the median of the comparables.  The

wage comparison revealed information as follows:

 

            OPERATORS                        1993 WAGES 1994 WAGES

            Cowlitz Transit                       $14.27             $14.69

            Pullman Transit                      $13.25             $13.60

            Twin Transit                           $11.80             $12.25

            Jefferson Transit                   $11.09             $11.42

            Valley Transit                        $10.67             $11.00

            Pacific Transit                        $10.66             $10.98            

            Skagit Transit                        $10.50             $10.80

            Mason Transit                       $ 9.59              $10.01

 

                        1993  JEFFERSON TRANSIT -- $0.42 ABOVE THE MEDIAN

 

                        1994  JEFFERSON TRANSIT -- $0.42 ABOVE THE MEDIAN

 

 

            Jefferson Transit argues that the use of the median for

comparing wages is fairer than an average given the asymmetrical

distribution of wages.  Even if the Arbitrator wants to look at

averages, Jefferson Transit is very close to the average of the

comparables.

            A similar study done for the dispatchers would place the

dispatcher wage rate for 1993 at $11.19 an hour, $0.48 above the

median.  The same result is true for 1994 where dispatcher wages

would be $0.22 above the median wage of the comparables.

            The mechanic wage for 1993 would be set at $13.01 which

places it right at the median wage for mechanics in the 1993

comparison of wages.  For 1994 the $13.40 proposed by Jefferson

Transit would place it $0.78 below the median.

            Jefferson Transit submits that in all three categories of

employees, the relative ranking among the comparables had stayed

the same or improved over the last five years.  There is absolutely

no evidence in this record that this Employer has gone from being

a salary leader to a salary "laggard."  There is nothing in this

record which calls out for the Arbitrator to restore a former

position of the agency among the comparable employers.

            Responding to the Union's request for a dispatcher

premium,  Jefferson  Transit  submits  the  Union  has  failed to

establish its burden that such a premium is warranted.  The Union

offered absolutely no evidence from its own comparables about

anything having to do with dispatcher rates.  Only one of the seven

comparables paid dispatchers more than their operators.  Nor did

the Union establish the dispatcher premium was justified on the

notion  that  dispatchers  are  akin  to  first-line  supervisors.

Lastly, none of the dispatchers were called to testify firsthand

about the demands of the job.

            With  respect  to  the  Union's  proposal  to  tie wage

increases to the sales and use tax increases, Jefferson Transit

submits this proposal is without merit.   If this proposal were

adopted for 1994, it would yield a 7.9% increase to the members of

this bargaining unit.  Only one of the Union's own comparables have

such a sales and use tax contingent increase built into their

collective bargaining agreement.   Further, the Union's proposal

only works if the tax receipts go up.  If the tax receipts go down,

the Union proposal does not require wages to also decrease by the

same amount.  The proposal makes no sense for an agency as small as

Jefferson Transit.

            Jefferson Transit next attacks the Union's wage data as

incomplete and inaccurate.  According to the Employer, the Union's

wage data cannot be trusted.  All of the wage comparison charts

contained errors and were displayed in a misleading fashion.  This

includes  the  comparison  of  1994  wages  for  comparables  with

Jefferson Transit's 1992 rates.

            Contrary to the Union's claim that wage increases in this

District  have  been  historically  low,  is  the  evidence  which

demonstrated that members of this bargaining unit have enjoyed wage

increases that exceed the average of ATU's comparables.  Factoring

in Jefferson Transit's 1994 wage rate of $11.42 per hour, the

result is a 22.1% increase over the 1990 wage rate.  Applying the

same calculation to the Union's seven-year comparison, Jefferson

Transit's 1994 wage rate constitutes a 29.8% increase.  The wage

comparisons with transit agencies across the nation do not support

the ATU proposal.

            It is also the position of Jefferson Transit that its

proposal is fair in light of wages paid by the "expanded comparable

list." When the wages paid by the three major school districts for

their school bus drivers are considered, this unit compares fairly

well.  Further, the school district drivers are part-time employees

who do not work the entire year.  A review of the wages paid to

dispatchers by the city of Port Townsend and Jefferson County

reveals that those dispatchers are paid substantially less than

Jefferson Transit's current rates.  The same is true when the wages

of Jefferson Transit mechanics are compared with the wage rates

paid to mechanics working in Jefferson County.

            The next statutory factor examined by the Employer

relates  to  economic  indices.    Jefferson  Transit  points  the

arbitration panel to three independent sets of economic indices

which it believes support the Employer's proposal.   First, the

United States has sustained an extremely low level of inflation

over the last two years, as measured by the CPI.  Second, Jefferson

Transit's employees have fared well historically in relation to the

CPI.   Third,  average annual earnings in Jefferson County are

substantially less than the state average and significantly less

than the counties advocated as comparable by the Union.  Fourth,

the per capita income levels for Jefferson County lag behind state

averages.

            Based  on  all  of  the  above  stated  arguments,  the

Arbitrator should award Jefferson Transit's wage proposal.

 

            D.        Health Insurance

 

            Jefferson Transit will pay up to a maximum of $145 toward

health insurance premiums plus an additional 60% of the total

excess costs of such premiums over $145.  For 1994, this would

cover 100% of the cost for the employee coverage, the class which

affects 11 of 19 bargaining unit members.  Effective January 1,

1995, Jefferson Transit would increase the base amount of the

health premium paid to $152 plus continuing to pay 60% of the

excess over $152.  In addition, for both 1994 and 1995, Jefferson

Transit would establish a health benefits account for each eligible

employee consisting of $500 per year to use to offset health

insurance premium costs, employee or family deductible, or the

plan's  co-payment  requirements.    Under  Jefferson  Transit's

proposal, an employee and one child would receive 86% employer-paid

coverage.  An employee, spouse and two children with no dependent

medical would receive 87% paid coverage.  Jefferson Transit submits

that the proposal reflects a wise compromise allowing risk-sharing

between employees and Jefferson Transit.

 

            E.         Financial Constraints

 

            Jefferson Transit asserts that the introduction of an

explicit fiscal constraint factor recognizes the reality that

public agencies are more and more squeezed by competing demands on

their limited resources.   According to Jefferson Transit, the

Union's wage and benefit proposal would decimate the budget for

years to come.  The wage proposal alone would result in an increase

over three years of $262,360.   Er. EX. 5.9.   The Union health

benefits proposal would add an additional $16,468 to the cost of

the benefit program.  If the Arbitrator adopts the Union proposal

to tie wages to increases in sales and use taxes,  the cost

increases would be substantially greater.

            The total financial impact of the Union's proposal would

force the agency into a negative operations reserve by 1995.  By

prudent management this agency has been able to maintain reserves

and cash in investment fund balances to keep the operation on solid

financial ground.  The current projections show that the sales and

use tax revenue for 1994 will be less than anticipated.  It is not

an option for this Employer to go to the voters to increase the

taxes in the service area.   Nor can the Employer abandon its

capital replacement fund.  Hamm testified this fund is necessary in

order to provide a mechanism to replace ageing vehicles in the

fleet.

 

            F.         Other Factors Traditionally Considered When

                        setting wages

 

            As previously noted, the Employer asserts that Jefferson

County's labor market is basically self contained.  In the view of

the Employer, it is appropriate to look at wage adjustments in the

local labor market.  No employer is awarding increases remotely

close to those requested by the Union in this case.  The city of

Port Townsend agreed to a 3% increase.  The SEIU bargaining unit at

Port Townsend School District also agreed to a 3% increase.  A 0%

increase was granted in the Chimacum School District and Quilcene

School District.   The largest private sector employer,  Port

Townsend Paper Company, awarded a 2.5% increase for 1993.   For

1994, that raise is currently proposed to be only 2%.  Jefferson

County employees received a 2.61% increase in 1993 and a 2.25%

increase in 1994.

            The factor of area economic conditions also supports the

Employer's proposal.  Jefferson County's economy is characterized

by lower paying service industry jobs.  It does not have a strong

manufacturing base.  The economy of the area was further impacted

by the closing of fishing and the downturn in the timber industry.

Jefferson County is a timber-dependent economy.  The economy is not

is a state that would justify the dramatic pay increases proposed

by the Union in this case.

            Regarding the factor of internal parity, the Employer has

adjusted non-represented  staff  with only one cost  of  living

increase of 3% in 1992.   For  1991,  1993 and 1994,  the only

potential pay raises were merit-based.  Only two staff received

such a raise in 1991, 1993 and 1994.  The turnover and hiring rates

indicate that the pay level is adequate to attract large numbers of

qualified candidates when positions are open within the agency.

            Jefferson Transit alleges that operators and dispatchers

have less stress than employees in larger agencies.   Jefferson

Transit does not deny there are certain stresses associated with

the job within this service area.  However, Jefferson Transit does

dispute that these stresses exceed or equal those carried by

employees in urban environments.  This is reflected by the fact

that there are only five to six passengers on a bus--on average--at

any particular time.  This is in direct contrast to busses in urban

areas, where drivers routinely must operate at standing room only

conditions  at  rush  hour.    The  realities  are  that  the work

environment at Jefferson Transit is good and the stresses are

reduced.

            Jefferson Transit concludes by stating it has fashioned

a fair proposal for both wages and health benefits within the

context of its budget and the economic conditions within which this

Employer must operate.  The Arbitrator should sustain the proposals

of Jefferson Transit and reject the proposals of the Union.

 

V.        ARBITRATOR'S AWARD - WAGES

 

            A.        Background

 

            The starting point in this case is RCW 41.56.492.  Since

the legislation extending the right to interest arbitration to

employees of transit agencies throughout the state of Washington is

relatively new, a few preliminary comments about the statutory

procedure are in order.  The guidelines contained in RCW 41.56.492

are similar to the guidelines governing police and firefighter

interest arbitration.  However, they are not identical to those

contained in the other statutes.  RCW 41.56.492 subsection 2(C)

uses  the  phrase "compensation  package  comparisons,  economic

indices, fiscal constraints . . ."  RCW 41.56.450 uses the phrase

comparison of the wages, hours, and conditions of employment of

personnel . . . "  In the judgment of this Arbitrator, wages, hours,

and conditions of employment are what is commonly referred to as a

compensation package." Hence, this Arbitrator can discern no real

difference  between  the  transit,  and  police  and  firefighter

guidelines on this statutory factor.

            The transit statute uses the terms  "economic indices"

rather than referring to the average consumer prices for goods and

services that is referenced in the police and firefighter statute.

The Arbitrator holds that the phrase economic indices expressly

broadens the specific types of economic indicators that may be

utilized by an interest arbitrator in formulating an award.

            The  transit  statute  also  uses  the  phrase  "fiscal

constraints" which is not found in the police and firefighter

interest arbitration guidelines.   The Arbitrator finds that by

using this term an arbitrator is specifically required to take into

account the financial circumstances of the employer.  Arbitrators,

under the catchall provision of the police and firefighter statute

typically discuss the financial constraints on the employer when

coming to an award on economic matters for police and firefighters.

            RCW 41.56.492(2)(C) includes the phrase "similar factors

determined by the arbitration panel to be pertinent to the case."

This language would appear to grant to the arbitration panel the

ability to exercise its discretion on a case-by-case basis to

utilize additional "similar factors" to the extent the facts may

warrant.  The utilization of "similar factors  in a particular case

expressly empowers an arbitrator to exercise his or her discretion

on whether to take into account additional factors when developing

an award.  To the extent the record warrants the utilization of

additional factors,  Jefferson Transit's argument that greater

weight should be given to developments within the Employer's local

labor market as well as budget restrictions faced by the Employer

is correct.

            RCW  41.56.492(2)(D)  continued  without  change  the

"catchall" factor that is found in the police and firefighter

interest arbitration statute.  This retention of the same language

indicates to this Arbitrator the legislature intended to continue

to allow great flexibility in the use of factors which a party to

a labor dispute can establish are relevant to their particular

agency or employment relationship.   In the judgment of this

Arbitrator, any differences in language between the two statutes

will not require any radical departure from the analysis that is

routinely taken by interest arbitration panels in police and

firefighter disputes.   The duty of an interest arbitrator in a

transit dispute will be to apply the standards and guidelines to

the specific record that is developed by the parties in the case at

issue.

            The transit statute refers to the factors as "standards

or guidelines" to aid the arbitrator in reaching a decision on what

terms should be included in a collective bargaining agreement.  The

relative weight to be given to any of the criteria listed in the

statute is not specified.  The factors identified in the statutes

are referred to as "standards or guidelines" which cannot be

applied in a neat and exact fashion.  This Arbitrator and others

who arbitrate labor disputes are responsible for applying the

evidence to the statutory factors even if the evidence submitted by

the parties is incomplete,  misleading,  contains errors or is

manipulative.  The submission of a dispute to interest arbitration

does not occur in a vacuum.   It is part of the continuing

relationship  between  the  parties  to  a collective  bargaining

agreement.   Therefore, it is important for this Arbitrator to

develop an Award that will avoid doing damage to the ongoing

relationship between the parties to the contract.

            The Arbitrator finds after a careful review of the

evidence and argument, as applied to the statutory criteria that

the salary schedule and wage progression proposed by the Employer

should be adopted effective January 1, 1993.  The Arbitrator would

further note that Step G should clearly be identified as a

longevity step on the salary schedule.

            The Arbitrator holds that wages increases should be

applied across the board as follows:

 

            1.         A  four  percent  (4%)  across-the-board

            adjustment  for  all  represented  personnel

            effective January 1, 1993.  In addition, for

            employees with five years or more of service,

            a  Step  G  would  be  added  to  the  wage

            progression reflecting the hourly equivalent

            of the longevity premium contained in the

            previous  collective  bargaining  agreement

            ($0.17 per hour).

 

            2.         For 1994, wages shall be increased by four

            percent  (4%)  across  the  board,  effective

            January 1, 1994.

 

            3.         For 1995, employees shall receive a three

            and one/half percent (3 1/2%) across-the-board

            adjustment, effective January 1, 1995.

 

            The reasoning of the Arbitrator is set forth in the

discussion which follows.

 

            B.        Constitutional and Statutory Authority

                        of the Employer

 

            Regarding the constitutional and statutory authority of

Jefferson Transit, no issues were raised with respect to this

factor.

 

            C.        Stipulations of the Parties

 

            Regarding the factor of stipulations of the parties,

there were no formal stipulations entered into by the parties to

this dispute.   However, the parties do concur on two essential

aspects of this dispute.   First,  the parties agree that the

Collective Bargaining Agreement should cover the period from

January 1, 1993, through December 31, 1995.  Second, the parties

have agreed that the five transit agencies included on both lists

of comparators should be used by this Arbitrator in framing the

Award for the 1993-95 contract.  The Arbitrator will honor the

requests of the parties and include the five common agencies in the

list of comparators.

 

            D.        Economic Indices

 

            Cost of living as measured by the CPI-W reveals that

inflation has been running at a level ranging from a low of 2.2% to

a high of 3.1% over the period from January 1992 through April

1994.  Er. Exs. 4.1 through 4.7.  While the union attempted to

counter the low levels of inflation recorded by the CPI with its

reliance on the housing affordability index, the Arbitrator was not

persuaded that this index is such to justify an award substantially

in excess of the increases in the cost of living as recorded by the

CPI.

            Jefferson Transit's evidence demonstrated members of this

bargaining unit have fared well historically in relation to the

CPI.   Er. Exs.  4.8 through 4.9.   In essence, these exhibits

demonstrate that members of this bargaining unit have received wage

increases in excess of those increases recorded in the CPI over

that same period of time.

            The parties placed before this Arbitrator a substantial

amount of data about the Jefferson County economy.  For the most

part, the information submitted by the Employer was current and

reliable.   The Arbitrator gave the greater weight to Jefferson

Transit's economic data.  Er. Exs. 1.10 through 1.11, Er. Exs. 4.10

through 4.12.  The picture that emerges from the economic data is

that  Jefferson  County  is  experiencing  moderate  growth  in

population,  per capita personal income,  and in the number of

persons employed.  The Jefferson County Relocation and Investor's

Guide stated that because of the growing diversity of its economic

base  the local economy has escaped the dramatic down-drafts of

other rural resource based communities."   Un. Ex.  12, p.  11

Recent unemployment figures show the unemployment rate running at

6.2% and 8.5% for 1991 and 1992 respectively.

            The economic progress being made in Jefferson County does

not tell the entire picture.  Average annual earnings in Jefferson

County  are  substantially  less  than  the  state  average,  and

significantly less than the counties advocated as comparable by the

Union.   The state average income in 1992 was $20,166 per wage

earner.  On the other hand, Jefferson County employees averaged

$18,339, or 9% less than the state average.  The per capita income

levels for Jefferson County also lagged behind state averages.

Jefferson County's per capita personal income level for 1991 was

$17,099.  The average of Washington State as a whole was $19,521.

The Arbitrator cannot ignore the fact that Jefferson County is not

a high wage county for workers.  Accordingly, the economic indicia

require an Award that is less than proposed by the Union.

 

            E.         Fiscal Constraints Factor

 

            The Employer argued that adoption of ATU's wage and

benefit proposal would decimate Jefferson Transit's budget for

years to come.  The Arbitrator concurs with Jefferson Transit that

the cost of the Union's proposal would be excessive in light of the

economic climate within which this Employer must operate. However,

the assertion that adoption of the Union's wage and benefit

proposal would decimate Jefferson Transit's budget for years to

come is a bit of an overstatement.  Jefferson Transit is a well-

managed organization which is conservative in estimating its income

and expenses.  In addition, the Employer is careful to set aside

money  needed  for  capital  replacement  and  for  unanticipated

expenditures.   The bottom line is that this Employer has the

ability to pay a wage and benefit package higher than it has

proposed without jeopardizing its overall financial standing.

 

            F.         Other Factors Traditionally considered In

                        setting Wages

 

            The evidence is persuasive that a wage adjustment in the

amount of 10% effective January 1, 1993, for the operators is

totally unrealistic in Jefferson County's labor market.   Wage

adjustments  in the  local  labor market,  as  evidenced by the

Employer's exhibits, show a range from 0% to 3%.  As previously

discussed, the economic conditions existing in Jefferson County do

not warrant the type of wage adjustment proposed by the Union.  Nor

is the Union's proposal supported by an examination of the internal

parity factor. Non-represented employees have not experienced wage

increases close to the amount proposed by the Union over the

duration of this three-year Agreement.  Turnover and ability to

attract qualified candidates to fill open positions suggest that

the wage level is not in need of the radical adjustment sought by

the Union in this case.

            The  parties  devoted  considerable  attention  at  the

arbitration hearing to the differences between working in a rural

transit system as opposed to an urban transit system.   The

Arbitrator finds no compelling reason to drive the wages 9f this

unit downward because they serve a rural population.  Whether it be

rural or urban, each transit agency places its own unique demands

on its employees.

 

            G.        Compensation Package Comparisons

 

            The primary focus of the presentations of the parties in

this case was the factor of comparability.  The parties came to

this interest arbitration with little or no agreement over which

employers should be utilized as a guide to the establishment of

wages in the Jefferson Transit.  To the credit of the parties,

through the arbitration process they have been able to reach a

consensus  on  five  transit  agencies  which  both  believe  are

comparable.   Further, the parties concur that the appropriate

number of comparators should be seven transit agencies.   The

Arbitrator finds that a group of seven comparators is a reasonable

number with which to measure what the wage structure of Jefferson

Transit should be during the duration of the three-year Agreement.

            Jefferson Transit has proposed to add Mason Transit and

Skagit Transit to the list of comparators. The Union seeks to have

Grays Harbor Transit and Clallam Transit added to the list of the

five comparators.  The task of the Arbitrator is to add two other

transit agencies to the list which will provide valid information

for the purpose of making the comparisons among the various transit

agencies.

            The Arbitrator was persuaded that Grays Harbor Transit

should not be included on the list of seven comparators.  Grays

Harbor Transit is three times the size of Jefferson Transit.  It is

not a public transportation benefit area corporation.   It has

operational programs that set it apart from Jefferson Transit.

Grays Harbor Transit operates an ambulance business and provides

service in the far-flung areas of southwestern Washington.  The

Arbitrator was also persuaded that Skagit Transit should not be

included in the list of comparators.  Skagit Transit is a newly

formed transit agency which is not geographically connected to

Jefferson County.   The Arbitrator was not persuaded that the

parties  would be well  served by  including on  its  list  of

comparators two transit agencies that did not exist when the

bargaining between these parties commenced for the successor

Agreement.  While Skagit Transit may be appropriate for future

consideration on the list of comparators, its time has not yet

arrived for placement on the list during this round of bargaining.

            The Arbitrator was convinced that Mason Transit should be

included on the current list of comparators even though it is a

newly formed transit agency.  Mason and Jefferson counties are

adjacent to each other.  Mason Transit is geographically connected

with Jefferson Transit in its service area.  Jefferson Transit and

Mason Transit have connecting routes.   Mason Transit is also

similarly sized to Jefferson Transit.   Given its geographic

location and similar size,  it is reasonable to include Mason

Transit on the list of comparators.   The utilization of Mason

Transit will also serve as a balance to the adoption of Clallam

Transit as an appropriate point of reference for determining wages

at Jefferson Transit.

            The Arbitrator also holds that the use of Clallam Transit

as an appropriate indicator of what the wages should be at

Jefferson Transit is reasonable and justified.   While Clallam

Transit is a much larger operation than Jefferson Transit, it does;

share the similarity of operating in non-metropolitan, largely

rural areas in western Washington.  Geographically Clallam County

borders Jefferson County on the north.  The use of Clallam Transit

is consistent with the Arbitrator's finding that Mason County which

borders Jefferson County to the south makes for a logical fit when

examining rural transit operations.  The geographical link with

Clallam Transit has resulted in operational connections between

Jefferson Transit and Clallam Transit.  By utilization of Clallam

Transit  and Mason Transit  on the  list of  comparators,  the

Arbitrator is giving recognition to the "local labor market"

arguments of the Employer in this case.

            In  preparing  its  comparison  studies,  the  Employer

included the longevity rate as part of the hourly wage rate.  This

Arbitrator concurs with the Union that it is misleading to utilize

longevity pay as part of the hourly wage rate when performing

comparison studies. There is no information before this Arbitrator

that longevity was used in calculating the top rate for the other

transit agencies or even if longevity is available in those other

agencies. Longevity pay is provided as a separate provision and is

expressed as a reward for long-term service to Jefferson Transit.

Under this contract employees are not eligible for longevity until

they reach five years of service.

            This does not mean that the longevity pay provision

should be ignored.  The problem develops when longevity pay is

commingled with the established contract rate and then displayed as

the maximum rate at Jefferson Transit for developing a salary

comparison study.  The Arbitrator will Award that the structure of

the salary schedule will be established and displayed as proposed

by Jefferson Transit 50 that both the employees and managers will

understand that Step G is a longevity premium.

            The 4% added to the 1993 salary schedule will yield a top

operator rate of $10.92.  For those employees eligible for the

$0.17 longevity bonus, their wage rate at Step G would be $11.09

per hour.   The parties have agreed to grandfather all current

employees at the maximum step.  Adding an additional 4% to the

salary schedule effective for January 1, j994, will yield a top

step wage of $11.36 an hour at Step F and $11.53 with longevity

pay.  The implementation of this Award places Jefferson Transit's

operators at the median of the comparables and in a competitive

position with those agencies at the lower end of the seven

comparators. With the implemented increases, the ranking among the

comparators will look as follows:

 

            OPERATORS            1993 WAGES 1994 WAGES

            Cowlitz Transit           $14.27             $14.69

            Pullman Transit          $13.25             $13.60

            Transit                        *                      $13.29

            Twin Transit               $11.80             $12.25

            Jefferson Transit       $10.92             $11.36

            Valley Transit            $10.67             $11.00

            Pacific Transit            $10.66             $10.98

            Mason Transit           $ 9.59              $10.01

 

            *Information not available for the 1993 Clallam top wage

            for operators.

 

            The three and one/half percent (3 1/2%) ordered for 1995

will increase the top operator rate at Step 5 to $11.76 per hour.

With the addition of the longevity pay, an operator will earn

$11.93 per hour in 1995.

            As denoted from the above comparison study, the removal

of the longevity premium does not change the relative standing of

the members of this bargaining unit when compared to the other

seven transit agencies.   It is apparent from this display that

there is a wide range of wages paid to transit operators in the

comparator group.  Top paying Cowlitz Transit is $1.02 per hour

above the second ranking Pullman Transit. What this Arbitrator has

done through this Award is to position Jefferson Transit in the

middle of the eight agencies involved in the comparator group.

Jefferson Transit will be the top paying employer of the four

agencies that are at the bottom of the range.  At the same time,

Jefferson Transit is in a competitive position to Twin Transit

which is the lowest paying of the top four transit agencies of

concern.

            The economic conditions of Jefferson County and Jefferson

Transit simply do not justify a wage increase which would drive

wages up by a minimum of 20% over the three-year period.  The Award

of this Arbitrator will establish a wage schedule that is within

the ability of Jefferson Transit to afford without "decimating" its

budget for years to come.  The Award is consistent with increases

recorded by the CPI.  The increases awarded over the three years of

the  contract  will  enable  employees  to  enjoy  a measure  of

improvement in their purchasing power when compared to recent rates

of inflation. Nor is there any evidence in the record of this case

which convinced the Arbitrator of a need to propel the Jefferson

Transit wages into the ranks of the top paying transit agencies in

the comparator group during this three-year contract.

            In formulating this Award,  the Arbitrator was also

mindful of the tentative agreements reached by the parties which

will improve the benefits paid to this bargaining unit in other

areas.  The Arbitrator also took into account improvements in the

health insurance for employees and dependents during the 1993-95

contract period.

            The Union made a unique proposal to provide an additional

increase to the members of this bargaining unit over the base

amount tied to the percentage increase of sales and use taxes

received by Jefferson Transit in 1993 and 1994.  While this is

certainly  an  innovative  proposal,  the  Arbitrator  remains

unpersuaded that this type of arrangement is appropriate at the

present time.  The uncertainties surrounding the amount of sales

and use tax to be received by Jefferson Transit argues against the

proposal.   Further, only one of the transit' agency contracts

proposed by the Union as comparable contains such a provision.

Thus, the Arbitrator must reject an increase based on a formula

dependent on the amount of sales and use tax received by the

Employer.

            Turning to the dispatcher issue, the Union proposed a 22%

increase for dispatchers. The Arbitrator holds the Union failed to

satisfy its burden of proof to have a dispatcher premium.  There is

no evidence in the record which compels a finding that dispatchers

should be paid a differential of the magnitude proposed by the

Union over the operator rates.   Jefferson Transit's comparison

study revealed that in only one of the seven comparables did the

employer pay dispatchers more than operators.  In several agencies

dispatchers are paid substantially less than operators.   The

Union's claim that dispatchers in this unit were performing

services  which  are  akin  to  first-line  supervisors  was  not

documented by relevant and material evidence.   Therefore, the

Arbitrator refuses to award the dispatcher premium sought by the

Union in this case.

            The Award of this Arbitrator is consistent with the

increases being negotiated with transit agencies across the nation.

Er. Ex. 3.46.  Further, the Award takes into account the economic

conditions existing in Jefferson County which reveal a growing

economy--but hardly one that could be characterized as booming--on

which to base an Award that would be totally out of touch with

other local salary settlements.

            Moreover, the Arbitrator carefully reviewed the expanded

list of comparators submitted by Jefferson Transit to sustain its

position in this case.  The Arbitrator gave the greater weight to

the comparisons between Jefferson Transit and the other transit

agencies because they are like employers.   They are delivering

comparable transportation services to the public.  The Arbitrator

examined the expanded list of comparators developed by the Employer

and found that they argue against an increase of the magnitude

sought by the Union.  The Arbitrator further found from reviewing

the expanded list of comparators that the wages paid by those other

employers did not compel the Arbitrator to award the Employer's

proposal as it was presented at the arbitration hearing.  In other

words, the Arbitrator rejected the notion that the expanded list of

comparators should be utilized to override the comparison between

Jefferson Transit and other transit agencies.

            Lastly,  the  amount  of  increases  awarded  by  this

Arbitrator give recognition to the dedication to the members of

this bargaining unit and the work which they often perform under

difficult and stressful conditions. The majority of the members of

this bargaining unit are long-term employees who have devoted

themselves to providing outstanding service to the traveling public

within  Jefferson  Transit's  service  area.    Therefore,  this

Arbitrator rejects any notion that wages of employees serving rural

areas should be driven down based on the fact it is a rural transit

system.

            In sum, the Award of this Arbitrator will establish a

wage schedule over the duration of this three-year Agreement that

is within the range of reasonableness when compared with the five

transit agencies adopted by the parties as the primary point of

reference, and the two added by this Arbitrator to set the wages

for the members of this bargaining unit.   Further, the wage

schedule is not out of line with the economic indices and the

fiscal constraints placed upon Jefferson Transit over the course of.

this contract and beyond.  The Award will allow members of this

bargaining unit increases which will protect their purchasing power

due to any cost of living increases over the duration of this

three-year contract.

 

                                                            AWARD

 

            The  Arbitrator  awards  that  wages  for  the  1993-95

Collective Bargaining Agreement be adjusted as follows:

 

            1.         A four percent  (4%)  across-the-board

            adjustment  for  all  represented  personnel

            effective January 1, 1993.  In addition, for

            employees with five years or more of service,

            a  Step  G  would  be  added  to  the  wage

            progression reflecting the hourly equivalent

            of the longevity premium contained in the

            previous  collective  bargaining  agreement

            ($0.17 per hour).

 

            2.         For 1994, wages shall be increased by four

            percent  (4%)  across  the  board,  effective

            January 1, 1994.

 

            3.         For 1995, employees shall receive a three

            and one/half percent (3 1/2%) across-the-board

            adjustment, effective January 1, 1995.

 

            4.         A wage progression shall be implemented to

            provide:

 

Year    Step A         Step B            Step C          Step D       Step E         Step F            Step G*

         Hire-6 mo.    6 mo.-1 yr.     1-2 yrs.           2-3 yrs.      3-4 yrs.       Over 4  yrs.   Over 5 yrs.

 

              90%          92%        (94%)       (96%)    (98%)      (100%)            w/longevity

           

*$0.17 per hour

 

VI.       ARBITRATOR'S AWARD - HEALTH INSURANCE

 

            A.        Background

 

            Presently the members of this bargaining unit enjoy a

benefit package which provides health insurance to the employee

without any out-of-pocket costs.  The issue for employees is not a

problem for 1993 and 1994 since the actual monthly premium cost is

less than the Employer has proposed to cap its obligations for

health insurance.  The difference of opinion over employee coverage

concerns the 1995 rates.  With respect to dependent coverage, the

difference between the parties is over what percentage the Employer

should pay to offset the cost to provide insurance for dependents.

 

            B.        Discussion and Findings

 

            The Arbitrator finds that the Employer's proposal on

health insurance should become a part of the contract with two

adjustments. First, the amount the Employer contributes toward the

health benefit premiums should be increased by approximately 8% to

$157 for 1995.   Jefferson Transit's proposal to increase the

monthly contribution for 1995 by $7 is inadequate to provide a

cushion against increased health benefit premiums in 1995 for the

members of this bargaining unit.  By increasing the amount of the

cap  to  $157,  Jefferson  Transit  will  be  protected  from any

unexpected large price increases.

            Second,  the Union's proposal to ensure that benefit

levels will not be decreased during the duration of this contract

 

                                                AWARD

 

            The Arbitrator awards that the insurance article for the

1993-95 Collective Bargaining Agreement provide as follows:

 

                        Effective the date of the Award on this

            interest arbitration, Jefferson Transit will

            pay up to a maximum of $145 towards health

            benefits premiums plus 60 percent (60%) of the

            excess cost of such premiums over $145.

 

                        In 1995, Jefferson Transit agrees to pay

            up to $157 towards health benefits premiums

            plus 60 percent (60%) of the excess over $157.

 

            In  addition,  effective  January  1,  1994,

            Jefferson Transit will establish (through an

            accounting  mechanism)  a  health  benefits

            account for each eligible employee.  Effective

            January 1, 1994,  Jefferson  Transit  will

            deposit $500 into the account of each eligible

            employee.     Again,  on  January  1,  1995,

            Jefferson  Transit  will  also  deposit  an

            additional  $500  into the account for each

            eligible  employee.     At  the  employee's

            discretion, the funds in this account may be

            directed or held for the following purposes:

            (1)  applied toward the  employee's monthly

            medical benefits premium; (2) applied to the

            individual's or family's deductible; or (3)

            applied to the co-payment requirement.   The

            balances left in the account at the end of

            each year may be rolled over to the next year.

            The total accumulated in the account cannot

            exceed the total of the individual's (and/or

            family's) gross co-payment liability plus one

            year's total deductible (individual's and/or

            family's).  The account is for health benefits

            coverage only.

 

NOTIFICATION OF PROPOSED CHANGES

 

            No change in any benefit levels shall be

made  unless  first  reduced  to writing  and

negotiated with the Union.

without the mutual concurrence of the parties is reasonable and

should be included in the 1993-95 contract.

            Third,  the $500 account to be established for each

eligible  employee will provide  an additional contribution to

protect against out-of-pocket costs for health insurance coverage.

 

                                                CONCLUSION

 

            This is the first interest arbitration that Jefferson

Transit and ATU have utilized to settle a contract dispute.  The

Arbitrator has formulated an Award which will balance the interests

of both parties over the duration of this three-year Agreement.

The list of comparators adopted by this Arbitrator will serve as a

basis on which to resolve future contract negotiations.  The time

has come to put these prolonged negotiations to rest so the parties

can concentrate on providing service to their customers.

 

                                                                                    Respectfully submitted,

 

                                                                                    Gary L. Axon

                                                                                    Arbitrator

                                                                                    Dated: October 1, 1994

 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.