[Mpls] LRT delayed for a year? AG Should Be Investigating!

[Dyna Sluyter]

On Friday, April 2, 2004, at 12:35 PM, Jason C Stone wrote:

> Consider the costs associated with leaving the LRT infrastructure idle 
> (or in testing mode) for
> one year.

	$700,000,000 invested at the going bond rate is over $30,000,000/year. 
Then figure in a thousand vehicle fleet, mostly busses, at a couple 
hundred thousand apiece= another $10,000,000 or so. Then add the cost 
of eight multi acre shops and equipment at over $10,000,000 apiece just 
for the buildings= another $5,000,000 a year in interest expense. Of 
course these buildings have to be heated and lighted, etc. during the 
strike and they're still paying there bloated managerial ranks and 
transit police too.

	So it's probably costing at least $50,000,000 a year not to settle the 
strike. That's $1,000,000 a week or $200,000 a weekday... Isn't that 
the amount Peter Bell claims to be saving in labor costs?

	Mr. Bell, it's time to move beyond junkie math and look at the cold 
sober economics of this strike- you're not savin' a cent!

>   This too, is money that could be brought to the negotiating table.  
> If Peter Bell
> thinks transit workers are overpaid, as a list member has mentioned 
> may be the case, he should
> state it clearly.  Perhaps he has and I missed it.

	Mr. Bell either hasn't done his research on employee wages and 
benefits of is hiding something- while he complains about high wages, 
UPS drivers earn more and get better pensions. While he whines about 
health benefits in retirement after 10 years, federal employees can 
earn similar benefits in 5 years.

>  If he does not think they're overpaid, he
> should not be disingenous about what sources of money could be brought 
> to bear to resolve the
> issue.  Otherwise it just appears that the rebellion must be down at 
> any cost.

	The costs will be high and many union workers will have the last 
laugh... Mr. Bell seems ignorant that Metro Transit hired lots of 20ish 
workers in the 1970s. Thusly many of the union members can retire and 
draw pensions any time they want, settlement or not. It'd be wise for 
Mr. Bell to settle up and be nice to them so they'll put off retirement 
a few more years...

	Just one additional fiscal note- the union confirmed today that only 1 
of the 24 light rail cars is operable. The contract to build and equip 
the line ends in December, and we will probably have to pay for the 
cars whether they work or not then. With the transit workers that test 
the cars on strike, we have no way of testing the equipment and getting 
it repaired. As a long time observer of rail transit, I suspect the 
light rail cars will be parked for years while Metro Transit and the 
manufacturer battle in the courts.

	by Twin City Lines North Side Station in Hawthorne,

		Dyna Sluyter