Update on Negotiations With Amalgamated Transit Union Local 836.

On August 31, 2015, the Interurban Transit Partnership (i.e. The Rapid) and Amalgamated Transit Union Local 836 resumed their efforts to reach an agreement. The parties were assisted by a state mediator. Unfortunately, the parties were unable to reach an agreement at this meeting.

The meeting was called by the state mediator after indications that the Union intended to make a proposal. The Rapid extended the parties' agreement to give them an opportunity to do so. However, the Union did not present any proposal and the negotiations broke down.

Consequently, the extension agreement granted last week expired as of midnight, September 1, 2015. The Rapid is currently reviewing its options as to how to proceed, but at this time, it fully intends to follow the terms of the previous agreement, including keeping wage and benefit programs in place. The only changes that go into effect immediately are that The Rapid will no longer collect Union dues through payroll deductions and any arbitration or grievances will be determined on a case-by-case basis. 

The Rapid remains focused on providing high-quality transit services to keep the community moving. We believe our employees share this same commitment. Indeed, under Michigan law, it is illegal for public sector employees to strike.

The Rapid also remains committed to reaching a resolution to Union negotiations that satisfactorily addresses the long-term financial impact of the growing unfunded liability associated with the Union pension plan, which has been at the heart of the failure to reach an agreement to date.