Dumb & Dumber?

Boo Hoo!

RTD's General Manager Cal Marsella agreed to a "pay cut" for 2009 and will ONLY receive $326,872 + a pretty generous benefit package for the year. Actually,  "pay cut" is a bit of a stretch since he'll still make more in 2009 than he did in 2008. A small part of the increase is a performance bonus but these seem to be a given so this reader of the Denver Post article has to wonder exactly what performance is being measured?

ATU Local 1001 President Holman Carter (well, some of the quotes are just attributed to the union) is also quoted:

"It's outrageous to say he's matching the freeze on both salaried and union-represented employees when he's actually taking increases, just not as big as he would get otherwise," Carter said.

In addition to criticizing Marsella's salary and bonuses, the union cites his pension benefit as excessive. It calls for him to receive 2.5 years of pension credit for each year worked at RTD.

Perhaps Mr. Carter is just jealous, after all, using the RTD Bus Operator pay scale as of January 1st, Mr. Carter would only received a minimum salary of $72,254 plus a car allowance in 2009.

Bus drivers are obviously overpaid with a starting "salary" of $32,219 at RTD and $24,648 with First Transit.

Let me take this opportunity to state that I know I play "fast and loose" with some of my figures, just to make things simpler. For example, if a union officer were a RTD Radiator Shop Technician in real life, their pay rate could be $24.15 per hour instead of $19.85. I think the lesson here is always elect bus drivers as officers and don't pay the President a base salary of  $88,000. A question? Has any local officer offered to forgo ANY compensation? I think Cal Marsella is deserving of criticism for the way he runs RTD but is this a case of living in a glass house and still throwing stones?

Note to self: Check which Occupational Group each of the officers came from. 

I am not criticizing the RTD workers; I think the hard working employees earn every penny they get and they are NOT OVERPAID! I've taken the time to read the 103 page RTD CBA and compare it to the 38 page First Transit CBA. 

The $32,219 starting salary as opposed to $24,648 is only a starting point. For example a single First Transit employee pays nothing for their health insurance while a single RTD employee does. That's just about the only First Transit plus. First Transit has a 401K plan rather that a sponsored retirement plan with an 8% to 3% company to employee match, RTD employees have a COLA provision and so-forth and so-on. I'm not smart enough to make a point by point comparison but I'd still have preferred the RTD package to  First Transit.

In my case, I opted for First Transit and never considered RTD even though I knew early on that RTD offered a much better compensation package. Admittedly, we worked much longer hours for less money but my simple needs were met and I always felt that a bird in the hand, etc. I also looked at bus driving as a short-term (only till I was 66, missed it by 4 years :-) job rather than a career. My decision at 25 or 30 would have been much different than it was at 60.

I would never advocate that RTD employees take a cut in pay or benefits but I will state that everyone should receive the same pay and benefits. It gets back to the Public Policy issue. First Transit, Laidlaw and Veoila can run a route cheaper because the employees cost the companies less! RTD and any US transit system can save money by Contracting for Service and creating a tiered labor force. 

If the compensation package were based on race, sex, age, religion or the other no-no's it would be illegal but as long as it "saves" a few bucks, our legislators, union and the taxpayer think it's OK. 

Shame on all of us!