Meanwhile, board members praised a decision to waive fare revenue for the remainder of January, something RTA CEO Mark Donaghy argued is necessary to rebuild rider trust.
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The union membership voted 280-50, president Glenn Salyer said Tuesday night. He said members were relieved, and so was he.
"It's a big relief for me, because this has been on my back for two years," Salyer said.
‘The same’
The plan both parties approved Tuesday was “to a very large degree the same” as RTA’s final offer last month, Donaghy said, but RTA will now contribute to a Health Savings Account one-time lump sums ranging from $1,100 for a single employee up to $2,500 for family plan coverage.
“This was funded by the union’s agreement to defer one of the wage increases” by six months in the second year, Donaghy said.
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The agreement also works out a lump sum back payment to each union employee for work completed between April 1, 2015 through March 31, 2016. The lump sum is 2 percent of the gross pay each employee earned during that time. The deal offers 2 percent raises across the board in 2017, 2018 and 2019.
The Dayton Daily News last week reported the agreement with the union would allow the contract to be reopened between ratification and June. Donaghy on Tuesday said this language allows the parties to make changes regarding a proposed wellness clinic.
Tax troubles
RTA board members welcomed the agreement with the union, but expressed concern about an impending loss of sales tax dollars from the state due to a federal decision to stop state collection from Medicaid managed-care organizations. In July, Donaghy said RTA stands to lose $4 million annually due to the federal decision.
Expenses continue to grow at RTA, as the board on Tuesday voted to approve an additional $1.7 million expense to cover insurance claims in December in addition to an additional $1.2 million supplemental expenditure approved last month, bringing RTA’s 2016 health insurance budget to nearly $11.5 million.
Donaghy said there “has been an absolute run on the old plan” ahead of the change to new insurance.
“This is a hard, hard pill to swallow,” said Dave Williamson, RTA board member. “We have got to find another way because … we’re facing this double-punch with the loss of revenue from” the Medicaid managed-care organizations.
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Even as costs grow, Donaghy said last week’s decision to waive fares through the end of January was necessary to rebuild trust with the public. Money thrown into the fare boxes will be donated to Foodbank Dayton.
“I believe we have no choice but to work to rebuild the relationship,” Donaghy said, acknowledging the decision would “have an impact revenue-wise.” Donaghy did not respond to a request for figures on how much the decision to waive fares for more than a half-month could cost the agency.
In 2016, the agency anticipated earning $9.3 million in fares – an average of $775,000 per month, according to RTA budget data.
UPDATE @ 8:05 p.m. (Jan. 17):
Members of ATU Local 1385 have ratified a labor contract with Greater Dayton RTA.
INITIAL REPORT
The RTA Board of Trustees and the Amalgamated Transit Union Local 1385 will vote today to ratify a new contract.
The RTA Board of Trustees will hold a public meeting at 8:30 a.m. at the agency’s administrative offices at Wright Stop Plaza.
The ATU will be voting from 7 a.m. to 7 p.m., with the results of the voting released to the public after.
Last Wednesday, the RTA and ATU came to an agreement following a 13-hour negotiation session with mediators.
RELATED: Specifics released in tentative RTA, ATU agreement
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