The Bay Area Rapid Transit (BART) contract negotiations and labor strike of 2,400 union workers is having significant negative impact to their fellow San Francisco residents and workers, who are simply trying to earn a living. It is reported in the media, that the previous strike this past July created a daily loss in productivity from $73-million to $100-million, as the 400,000 daily riders scramble and wait in long bus lines or traffic jams to commute to/ from work. One of the main issues is the pay increase. The union reports that the average salary for a BART employee is $64,000, while the media reports it is $76,500. Why the large difference? It might be that the union amount is just the base salary and the media amount includes the mandatory overtime that union employees must be provided in their contract. The union leadership has stated that high pay increases are needed since San Francisco is among 10 most expensive cities to live, along with having to pay an increase in their employee health insurance coverage costs, estimated to change from $1104 per year to $1728 per year ($624 increase). An interesting note is that despite having to pay more for their health care coverage, the union employees are not willing to give up their existing health care coverage and enter the Affordable Care Act (ACA) health exchanges. Here in NJ, earning $76,500 a year is a good income. In the mid-west United States, it is a very good income. But due to the high taxes and inflation in San Francisco and California, they decry as it being not enough. In raising the BART salaries, it will continue the increasing cost of living for San Francisco, rather than make it cheaper. Realistically, after the new contract is signed, BART will either have to raise the cost per ticket or layoff workers to balance their operating budget. In raising ticket prices, it will significantly hurt low income and struggling workers. These workers (including those from different unions) will have less money to pay for other life costs such as rent, food, and debt payments. In laying off workers, people will be moving to a more affordable region as they will be unable to pay their debts. San Francisco would then lose the productivity, rent payments, and taxes paid by that worker. What this demonstrates is that higher wages does not automatically result in an affordable cost of living. The problem has always been how to reduce the cost of living, rather than arbitrary wage increases that only create inflation and prevents the people from creating their own wealth. The bad economic and minimum wage policies that has made San Francisco unaffordable to live at $76,500 per year must be stopped and prevented from spreading across the United States. Cots of living inflation will hurt low income families the most. The California unions can help all of us if they decided to spend their political donation money on new candidates that will prevent the rapid rise in the cost of living. Our nation needs to elect new officials to the Senate and House. The 20+ year politicians and unsustainable economic policies of Nancy Pelosi, Barbara Boxer, and Diane Feinstein must be replaced by a new group of public servants that will put the needs of their voters ahead of their own political ambitions. References: insidebayarea/news/ci_24341873/bart-strike-no-clear-path-get-trains-running uk.reuters/article/2013/10/19/usa-bart-sanfrancisco-idUKL1N0I900K20131019
Posted on: Sat, 19 Oct 2013 20:26:51 +0000
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