CTA settles contract with labor union
The CTA Wednesday wringed some money out of the Amalgamated Transit Union in settling its labor contract, according to a Crain's Chicago Business report:
"Workers who now don’t have a payroll deduction for health care will be required to contribute 3% of their pay for health benefits, and contributions toward pensions will double to 6% of pay from 3%. CTA pension contributions also will double, to 12% of payroll, but part of that money will be used to pay debt service on a proposed $1.5-billion bond issue that will be used to shore up an existing CTA pension plan that has been facing insolvency."
I also noticed that the CTA's deficit has now doubled to $200 million because of new contract liabilities.
In other CTA news . . .
Federal lawmakers rail against the CTA, from the Daily Herald.
Sedgwick closing affects #11 bus, from CTA site.
IIT design could save CTA millions, from Tribune's Getting Around column.
Good for CTA and its Unions. Realistically addressing the situation. Much of our lege is ready to realistically address the situation (once the budget thing is taken care of) with the sales tax.
Its too bad our dumb-Governor is still in the lala land of denial and refuses to sign a sales tax bill. Madigan's gonna have his work cut out for him, in order to override the veto. At least Emil can override the veto.
Posted by: jerry 101 | June 29, 2007 at 08:37 AM
I agree with you jerry 101, we really need to increase sales taxes up to 40% so we can get this budget on track, cover the pension for all CTA/state workers, fix all the transportation needs and to pay for universal health care. There is no reason why the rich should not pay their fair share.
Posted by: bill bucks | July 02, 2007 at 05:40 PM
Does anyone realize just how ridiculously inflated CTA pensions and health care costs are? This is why they're in such a crisis; they've been letting the union run the CTA for many years now. Enough is enough, we can't afford much more of this nonsense. Give the CTA workers 401(k)s and subsidized (but not free) PPOs like all other American workers. Why should we be taxed out the ass to pay some lazy public workers more money in benefits than those of us who actually work for a living will ever make?
Posted by: Ralph | July 05, 2007 at 11:32 PM