An Exploration Of Concerns Associated With Labor Requirements Necessary For Receipt Of Federal Mass Transit Assistance PDF Download

In 1964, Congress passed the Urban Mass Transportation Act to provide financial assistance to states and local governments to extend and improve urban mass transportation systems beleaguered by rising costs and declining ridership. The provisions commonly called Section 13(c) were included to protect employees who might be adversely affected by industry changes resulting from financial assistance under the act. One specific concern was that if municipalities and other public entities used federal assistance to purchase falling private transportation providers, the employees could lose their jobs, collective bargaining rights, or other rights they had gained through collective bargaining. For example, prior to the passage of the act, transit employees in Dade County, Florida lost their collective bargaining rights; and subsequent decisions regarding wages, hours, and working conditions were made unilaterally after their employer was acquired by a public transit authority. Another concern leading to Section 13(c) was that technological advances made with federal assistance would reduce the need for transit labor. Section 13(c) is unusual in that two federal agencies administer it: DOT and DOL. Section 13(c) requires that DOL certify that fair and equatable labor protection arrangements are in place before DOT makes grants to transit applicants. Such labor protection arrangements are to provide for (1) the preservation of rights, privileges, and benefits under existing collective bargaining agreements; (2) continuation of collective bargaining rights; (3) protection of employees against a worsening of their positions with respect to their employment; (4) assurances of employment to employees of acquired mass transportation systems and priority of reemployment for employees terminated or laid off; and (5) paid training or retraining programs.