BART Expresses Concern Over Whether Union Leaders See State`s, Region`s Grim Economic Outlook in Contract Negotiations

OAKLAND, Calif.--(Business Wire)--
BART management said it is actively attempting to negotiate a contract with its
five employee unions through the new deadline of July 9, but expressed concern
that union leaders are still failing to see the grim economic conditions that
are facing the nation, the state and BART.

"I am hopeful that through discussion and negotiation with union leaders that we
will help BART close the current budget deficit of $250 million over the next
four years-as well as addressing the extremely challenging economic times
ahead," said BART Board President Thomas Blalock. "But I am deeply concerned by
the ongoing failure of union leaders and their attorneys to see the economic
realities that BART and its riders are facing."

While union leaders say a nine-day contract extension will help them reach
consensus with BART on a new labor agreement, a union website posting suggests
the unions will seek to bargain beyond July 9. Contract talks have been ongoing
since April 1.

And union leaders continue to make statements to the media defending their
demand for a 3 percent raise despite the weak state of the economy and BART
finances. Meanwhile, riders are expressing impatience with the union negotiating
stance and union demands for more time to reach an agreement.

Blalock pointed to BART experiencing its worst sales tax revenue drop in its
37-year history and a 10 percent decline in ridership during the first half of
June - all of which is making BART`s projected $250 million, 4-year deficit
worse, not better, he said. These are the two main sources of operating revenue
for BART, accounting for 90% of BART`s operating income.

Blalock said it is BART`s objective is to negotiate a fair contract with union
leaders that will address $100 million in savings for the transit agency through
improved union contracts. BART is asking for its union employees to pick up more
of the cost of their benefits and pensions or trim the amount of benefits so
riders and taxpayers don`t have to bear the additional burden. In addition, BART
proposed to eliminate contract language that limits the agency`s right to
improve productivity by changing wasteful work rules. Learn more at
www.BARTlabor.com.

"We have to improve efficiency and reduce all costs, including the cost of our
labor contracts while at the same time keeping BART affordable for our riders.
Our proposed work rule changes will let us put the right people in the right
place to do the right job. None of the proposed work rule changes - which could
save almost $40 million - affect workers` wages - except by reducing unnecessary
overtime," Blalock said.

BART faces a $250 million, four-year deficit. The contract with all five of
BART`s unions now expires on July 9, 2009, after being mutually extended past
the original contract date of June 30.

The average union worker makes $114,000 a year in wages and benefits. Even
without an increase in salary, the cost of maintaining the current benefits for
BART employees over the next four years accounts for nearly half of BART`s $250
million shortfall.

"We now need to reach an agreement by July 9," Blalock said. "BART riders and
taxpayers cannot afford to extend beyond this new deadline because every day of
delay means we fail to achieve the savings we need." He said every day of delay
costs nearly $70,000.

"It would be unfortunate for union leaders to call for a strike," Blalock said.
"Instead of protecting their workers' jobs, the union leaders would make it
extremely difficult or impossible for hundreds of thousands of working men and
women to get to their work by using BART. These are the same riders who
ultimately pay for this system."

BART Media & Public Affairs
Linton Johnson, 510-464-7139
Chief Spokesperson
Pager: 510-899-2285
ljohnso@bart.gov

Copyright Business Wire 2009