WHAT IS SECTION 13(c)?
Section 13(c) is transit industry short-hand for a section of the Federal Transit Act, which was once codified as Section 13(c), but can now be found under 49 U.S.C. § 5333(b). Section 13(c) obligates public transit bodies to guarantee certain rights and protections to transit workers when federal funds are used to acquire, improve, or operate a transit system, like here, in Austin. Back in 1972, the City of Austin received federal funding to take over the Austin transit system, which was then operated by a failing private company. Austin bought it out with a combination of federal and local taxpayer dollars. When this takeover happened, Section 13(c) required Austin to protect its transit workers, promises that still must be kept to today.WHAT WERE THE CITY OF AUSTIN'S SECTION 13(c) PROMISES?
When Austin took over the transit system, Section 13(c) required Austin, its new private operator, and the transit workers to enter into Section 13(c) agreements mandating that the City and its private company to:
1. Preserve transit workers' rights and benefits, including pension and healthcare:
2. Continue transit workers' collective bargaining rights;
3. Protect transit workers against a worsening of their employment conditions;
4. Assure jobs for employees of acquired mass transit systems;
5. Provide priority of reemployment if an employee is laid off or his job is eliminated; and
6. Provide paid training.
The US Department of Labor, has stated that these assurances do not "sunset" over time. In fact, the protections and promises have been reaffirmed by Capital Metro dozens of times as part of several transit grants in 2010.
WHY DOES A PRIVATE CONTRACTOR HAVE TO HELP THE CITY RUN THE SYSTEM?
Because the State of Texas prohibits a public employer from collectively bargaining, Section 13(c) required Austin to make sure that a private entity continued to employ the system's workforce to be in compliance with Section 13(c) obligations and state law. This can be viewed as a triangle relationship which is known as the "Memphis Plan". Capital Metro, the grantee, Star Tran, Inc., the operator, and the transit workers represented by ATU Local 1091 are all part of the Memphis Plan, here in Austin.
WHAT ARE CAPITAL METRO'S 13(C) PROMISES?
In the mid 1980s, the City of Austin formed Capital Metro to operate the transit system. When Capital Metro was created, it sent a letter to the U.S. Department of Labor promising to honor all of Austin's Section 13(c) agreements. Also, every time Capital Metro applies for federal grants, it reaffirms Section 13(c) agreements and obligations to the U.S. Departments of Labor and Transportation, and its transit workers. Capital Metro applies for several grants every year. That's how Capital Metro currently receives approximately $33 million federal dollars annually to support and improve the Austin-area transit system.
HAS CAPITAL METRO SHIFTED CONTRACTORS IN THE PAST?
Capital Metro has changed contractors before - first Capital Metro contracted with American Transit Corporation, when with Management Labor Services, and most recently with StarTran. Each time Capital Metro shifted companies, it was required by the U.S. Department of Labor and its Section 13(c) agreements to ensure that the next company, as a successor, comply and honor all of the previous contractor's Section 13(c) agreements - and they did. This time is no different.
WHY IS CAPITAL METRO CHANGING CONTRACTORS? AND WHAT SHOULD CAPITAL METRO DO NOW?
The Texas Legislature had mandated Capital Metro competitively bid its contracts, including for transit operations. This is not very different from the way it has always operated the transit system with a contractor. Capital Metro should require its next contractor to hire the entire current work force, honor existing working conditions and negotiate a fair collective bargaining agreement with ATU Local 1091 - just like it is required of each of its past contractors.
WHAT CAN I DO TO SUPPORT AUSTIN-AREA TRANSIT WORKERS?
Call Capital Metro and tell them to keep their promises! Capital Metro comment line: (512) 385-0190.
Please contact ATU Local 1091 for more information about how you can support Austin-area transit workers (512) 386-6485.
