Intercity Transit, union at odds on wage increases

How much wages should increase for the bus drivers and other public-facing employees of Intercity Transit is the primary reason a new contract has not been finalized.

Negotiations with Local Amalgamated Transit Union (ATU) 1765, which has 345 members and also includes dial-a-lift dispatchers and customer care representatives, began on Nov. 18, 2024.

The union’s contract expired at the end of last year, but the provisions of their current contract are still in effect as per state law.

Members of the union have been asking for a raise to help them cope with living expenses. Twenty-one people, most of whom are members of the union, spoke before the Intercity Transit Authority, the agency’s governing board, to justify their requests on Wednesday, March 5.

Stories about not having enough money for decent food, spending half of a paycheck on child care, and sometimes needing to use an entire paycheck for rent were just some of the stories shared during the public comment portion of the meeting.

“We've got drivers doing odd jobs around the house for other drivers. Seriously, we've got middle-aged men and women borrowing money from their parents just to cover bills or living with their parents because they can't afford to make it on what they're being paid here,” said a union member named Adam.

One bus driver named Michael said his rent was due in 20 minutes and he wouldn’t make it. Another driver named Robin, who said she was a single mother of three children, said she has gone into debt to care for her daughter who has mental health issues.

A commenter named James read a statement from a bus driver who has been with Intercity Transit for years, but is now homeless.

“We are not here asking for any more than we really do deserve. We want to be able to come to work without having on our minds: ‘Do I pay my power bill, put gas in my car or buy food for my family?’” the statement read.

Some of the comments also expressed hurt over how much management-level employees were earning compared to the bus drivers who have to face riders every day, or how much the agency’s attorney has been earning as negotiations continue when the agency can just end it by accepting the union’s terms.

Offer versus request

After the public comment portion of the meeting, Intercity Transit delivered an update on negotiations, starting off with lead negotiator Jonathan Lee of Summit Law.

Lee gave an overview of the outstanding items the agency and union have not agreed on. The two parties have not settled on a new longevity pay, overtime pay, and an increase to floating holiday leaves.

A wage increase is the most significant issue, as the union’s request would lead to an increase of $3.8 million in basic pay in the first year of the new contract in contrast with the agency's offer of a $1.9 million increase, according to a presentation by Jana Brown, Intercity Transit's chief financial officer.

The transit agency is proposing a 4.25% increase to the general wage in 2025, 3.5% in 2026 and 3% in 2027.

Meanwhile, the union is requesting an 8% increase in 2025, 7% in 2026 and 6% in 2027.

Based on the union’s existing contract, a bus operator earns $24.44 per hour, a dial-a-lift dispatcher earns $32.72 per hour, while a customer care representative earns $23.66 per hour. The wages are all based on an employee’s first year of service.

With the transit agency's proposed increase, a bus operator would earn $25.48 per hour in 2025, $26.37 in 2026 and $27.16 in 2027.

While Brown’s presentation did not show how the union’s requested increase translates to dollars, Lee said a top paid operator who is currently earning $32.12 per hour would see their hourly wage grow to $42.48 by 2027.

The two sides are on the same page about getting the same percentage increase for all three positions, but on top of that, Lee mentioned the union is requesting the wage of a customer care representative be the same as a bus operator.

Another point of contention was for the new longevity pay. Lee said the agency is proposing an additional 2% pay for employees with at least 20 years of service, while the union wants an additional 2% for employees with at least 10 years of service, and 3% for people with at least 15 years.

Long-term financial concerns

To address why the agency hasn’t agreed to the union’s terms, Emily Bergkamp, the agency’s general manager, spoke about the increasing costs of maintaining the agency due to issues in the supply chain, which will only be complicated by looming tariffs.

Bergkamp mentioned they have already been notified by its bus manufacturer that costs are expected to go up.

“We also have things that we have to consider as an agency. It's the reality of providing transit to a community in a really quickly changing climate that has a very uncertain future,” Bergkamp said.

During public comments, one person asked why the agency could not use reserve funds. Brown said they use the reserve funds for capital projects.

“(Reserve funds) should not be used on ongoing expenses, because then you create an environment that is not sustainable, so our reserves are set aside for capital improvements,” Brown said.

Brown also showed a forecast, which points out the agency’s cash balance could turn red by 2043 if the growth of revenues and expenses remain unchanged.

The forecast assumes an average 2% increase in revenues, a 4% increase in expenses, and excludes the wage increases being deliberated on.

While the agency is expected to generate $13 million in profit this year, the money goes toward capital projects which would cost $33 million for this year. The forecast also projects expenses would overtake revenues by 2033.

“Right now, keeping everything constant, we show that we will have to consider and make some hard choices around 2041 to 2043,” Brown said.

Some board members express support for union

Board member Mark Neuville, who is also the president of ATU 1765, said the agency's financial projections fail to address the financial hardship bus operators are facing.

“All the numbers we’re talking about don't address the triangulation everyone's having to make month to month. 2043 is not what they're thinking about, tomorrow is what they're thinking about,” Neuville said.

Board member Robert Vanderpool, an Olympia City Council member, also spoke in favor of the union.

“If a portion of our workforce cannot afford to live here, then our sales tax (is) going to collapse,” Vanderpool said

He added, “$3.1 million is a lot of money, but it is reinvestment in the community in a lot of ways."

Terms tentatively agreed on

Though wages are still being negotiated, several items of the contract have been tentatively agreed on as of the last bargaining session on Feb. 25. The items include:

• A direct pay of $1,800 per year for family and wellness benefits.
• Paid bereavement leave for three to five days depending on the distance the employee has to travel.
• An increase of the deferred compensation match from 6.5% to 8.5%.
• An increase of two vacation slots per year from 2025 to 2027.
• Increased hourly pay for instructors.
• Increased hourly pay for spread time.
• Increased daily holiday pay.
• Up to three paid administrative leave days if assaulted or targeted for hate speech.
• Safety and nondiscrimination contract protections.

Brown also spoke about new terms the agency is still requesting as of the last bargaining session. The terms include requiring an employee on medical leave to provide a return-to-work date within the first three weeks of the leave, to requiring an employee to call in daily while on jury duty, and to allow more work hours for an employee on light duty.

The union is also requesting additional conditions, such as how overtime is awarded to dial-a-lift drivers, a supplemental insurance benefit option, the integration of the Federal Transit Administration’s Public Transportation Agency Safety Plan into the contract, and a designated time to meet new hires.

Video recordings of this meeting are available on the agency's website.