Ferry workers, state reach tentative deal on cutting $10M in costs

Washington ferry-workers unions have reached a tentative deal with the state that could save the cash-strapped ferry system $10 million a year by bringing their labor contracts more in line with those of other state workers.

About a third of the yearly savings — $3.4 million — would come from pay reductions, similar to the 3 percent pay cuts other state workers agreed to in December. Another $6.6 million would come from trimming other labor costs.

"These agreements address the concerns that have been raised publicly and in the Legislature over the past year," said Gov. Chris Gregoire during a news conference Friday. "They represent real commitment to public service by those who want our ferry system to be the best in the world."

She said an additional $10 million in savings over the next two years has been identified, money that would come from reducing the ranks of management, cutting overhead and streamlining operations.

The labor contracts need to be ratified by the ferry-union members. It is hoped that will happen by the end of the month, said Tim Saffle, a representative for the International Organization of Master, Mates and Pilots, one of the unions representing the state's ferry workers.

The governor, along with union leaders, provided little detail about the new contracts. Concerns about possible wasteful spending identified in the recent KING-TV series "Waste on the Water" were addressed in the tentative agreement, Saffle said.

More than a dozen bills aimed at ferry overhaul have been introduced in the Legislature.

Among them is SB 5405, which would bring ferry-worker benefits such as leaves, holidays, travel time, meals and overtime more in line with those of other state employees.

Ferry unions have flooded public hearings throughout the session, arguing that the bill would undermine collective bargaining.

The bill's sponsor, Sen. Mary Margaret Haugen, D-Camano Island, said in a statement that it's too early to tell whether the tentative deal announced Friday would make her legislation and others unnecessary.

"The overall savings they've described sound encouraging, but we still need to see the details, and that won't come out until the unions have ratified the contract," Haugen's statement said.

The ferry system faces a nearly $900 million budget deficit over the next 10 years — even with the governor's proposed cuts to services and fare increases. The bulk of the deficit is expected to occur in the capital budget, ferry officials say.

Another bill, SB 5742, introduced by Haugen would add a 25-cent surcharge to each ferry fare to pay for the construction of a 144-car ferry.

The governor said she still hasn't ruled out service reductions and raising fares, but she's leaving those decisions up to the Legislature.

"We do not in any way shape or form have what's necessary for us to address the capital problems," Gregoire said. "Therein lies our biggest challenge and one our Legislature is going to have to address."

Queenie Wong: 360-236-8267 or qwong@seattletimes.com