DALLAS - For the second time this year, drivers and mechanics at Greyhound Lines have overwhelmingly rejected a new labor agreement.
The current Greyhound-Amalgamated Transit Union contract expires Jan. 31.
The latest rejection was a foregone conclusion. The union leadership had opposed the contract, and the "last, firm and final offer" from the company proposed freezing wages for nearly three years, with a 2 percent hourly increase on Nov. 1, 2006.
The executive board of ATU Local 1700 had voted unanimously in mid September to reject that offer, and strongly recommended its members do likewise. They did.
Nearly 87 percent of the Greyhound drivers and mechanics who participated in the balloting voted no. Fewer than 14 percent checked yes in voting that concluded late last month.
The union said the 37-month contract proposal included more than $2.7 million in employee concessions, or givebacks.
The company says all of the concessions will be absorbed by employees hired after Jan. 1.
The latest contract offer is measurably different from the proposal turned down by Greyhound drivers and mechanics in May. That agreement, which had been recommended for approval by the union executive board, was rejected by the 62-to-38 percent margin. Highlights of that proposal included:
-- Wage increases of 4 percent in August of this year, 2 percent in January 2005 and 3 percent in April 2006.
-- A 67-33 percent split on premiums for health benefits, with Greyhound paying the higher percentage. The latest proposal calls for a 65-35 split of healthcare premium costs.
Since the May proposal was rejected, Greyhound has reported it lost almost $112 million in 2002, and has furloughed 175 drivers and more than 60 maintenance employees. In addition, roughly 300 managers have been fired, including 150 headquarters' employees.
The company and union are scheduled to meet again Nov. 15. "We expect the (latest) vote to be a topic of discussion," said Local 1700 President Greg Herbold.
In a statement, Greyhound spokeswoman Kim Plaskett said: "This vote is part of the ongoing contract renewal process. We are currently assessing the results of the vote and determining our next steps."
Currently, Greyhound drivers with five or more years experience operating on scheduled routes are paid $19.85 hourly. A driver with more than a year of service but less than two years earns 90 percent of the experienced rate. Charter pay is 75 percent of the schedule rate.
Pay for mechanics varies by location. An experienced Greyhound mechanic in Syracuse, N.Y., is paid $15.43 hourly, while a company mechanic in Seattle earns $22.14 an hour. Mechanics at all other locations are somewhere in between those extremes.