Monday, October 16, 2006

 

PAT Driver Pay Gouges Taxpayers

Under pressure from local media, the Port Authority released its 2005 wages for union employees as well as the expected wage rates and salaries for all 2006 personnel. As expected, apologists for the Port Authority (PAT) were waiting with their excuses—too much overtime, but it’s cheaper to pay overtime than to hire new drivers. What they fail to mention is that wages and benefits continue to drain the budget as PAT once again faces another large budget deficit.

It was reported that the top PAT operator earned more than $90,000 in wages for 2005. This figure includes more than $41,000 in overtime, which means this operator made slightly more than $49,000 or approximately $24.50 per hour for straight time work. It was noted that the top hourly rate for bus and trolley operators was below that at $22.18 per hour. This was excused as being the 24th highest union wage. Obviously, this is done to PAT in a favorable light.

But this type of wage comparison has major shortcomings. First the data shows the highest bus and trolley wages earned by any driver, not the average for all drivers—a more useful comparison. Secondly there is not mention of the cost of living differences between cities that rank higher in the study. Finally there is no mention of the efficiency of these other systems versus PAT’s. PAT’s ridership has been quite flat despite the additions to the busway (East Busway extension and West Busway) and light rail systems (Overbrook).

According to the most recent National Transit Administration data (2004), the average PAT bus driver wage was $20.50 per hour. This was much more than drivers earned in Los Angeles ($18.87), Atlanta ($16.88), and Charlotte ($16.16). It was less than what drivers earned in San Francisco ($25.44), Boston ($24.26), and Chicago ($21.17). But
these are not adjusted for the cost of living. The following table shows how the Port Authority stacks up to various wages in other cities that are adjusted to maintain current living standards, if the driver moved to Pittsburgh.

City Average Hourly Wage ($) Adjusted Hourly Wage ($)*
Port Authority $20.50 $20.50
Columbus 20.51 18.65
Cleveland 18.79 17.61
Denver 18.15 16.78
Chicago 21.17 16.78
Kansas City 16.91 16.69
Boston 24.26 16.66
Charlotte 16.16 16.26
Atlanta 16.88 16.12
San Francisco 25.44 13.81
Los Angeles 18.87 11.04
* Rate necessary to maintain current living standard in Pittsburgh.

Clearly, the Port Authority adjusted hourly wage rate is higher than any of the cities listed above. Any claims that the wages paid to PAT drivers are in line, if not lower than comparable cities, is misleading. Moreover, transit drivers in transit systems other western Pennsylvania counties earn only $13 to $14 per hour. Finally, PAT drivers have some of the most generous benefits of any workers anywhere.

PAT drivers are very well paid by any measure—far better than their compatriots around the country. Only in Pennsylvania and Allegheny can this distortion of wages from the competitive market level be tolerated.

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