L.A. Transit Authority Accuses Striking Union of Mismanaging Pension Fund

As a transit union strike wreaked havoc on rush hour transportation in Los Angeles, transit officials insisted on increased control over the union’s insolvent pension fund.  Local 1227 of the Amalgamated Transit Union (ATU), representing 2,200 Metro. Transportation Auth. Mechanics, began their strike on Oct. 14.  The union representing some 6,000 MTA drivers and train operators refused to cross the ATU’s picket line, and an estimated half-million commuters have had to find alternative transportation since.


At issue is a trust fund that pays for the employees’ insurance and medical expenses.  The fund is currently losing $5 million a month.  Local 1227 president Neil Silver is demanding that the MTA increase its financial support for the fund, which is currently $16.8 million.  MTA officials have offered to contribute an extra infusion of $2.6 million for one time only in exchange for gaining temporary control of