Union files lawsuit over streetcar contract
The local union seeking to run Cincinnati's streetcar filed a lawsuit Wednesday to try to block the Southwest Ohio Regional Transit Authority from awarding the operations contract to a private company.
The Cincinnati branches of the AFL-CIO and Amalgamated Transit Union have asked a judge to issue a temporary restraining order against SORTA, which plans to award the contract next week.
A hearing is scheduled for 2 p.m. Thursday in Hamilton County Common Pleas court.
"This is about public trust, transparency and accountability," said Pete McLinden, executive secretary-treasurer of Cincinnati AFL-CIO Labor Council.
The lawsuit also was filed against the city, which the union claims has not lived up to promises in the process of awarding the operations contract.
The lawsuit could end up delaying the opening of the streetcar and costing city taxpayers more money. SORTA officials have said the operations contract has to be awarded by the end of this month in order to remain on schedule and have all employees in place for the start of a months-long testing phase in October. The streetcar is scheduled to open to passengers in September 2016.
The SORTA board is scheduled to meet Monday to vote on the contract.
"Unfortunately, I can't comment on any pending legal matter, however as of right now, the SORTA board fully intends to meet and vote on who will operate the streetcar on July 6 until otherwise notified," SORTA Chairman Jason Dunn said.
The transit authority board will vote on one contract option. That almost certainly will be the proposal from a private company that says it can run the city-owned streetcar for $4 million a year. The management option, which would include union workers, was going to cost at least $4.7 million annually. City Council did not budget enough money to cover that contract option, and it's now off the table.
Council last week voted down an ordinance demanding SORTA only hire the local union – giving the transit authority the option to make the call. But it's been SORTA's call ever since last fall, when the agency and city entered a streetcar operating agreement.
City taxpayers and streetcar supporters cheered council's latest decision. It opened the door for SORTA to make a hire that could save city taxpayers $700,000 a year and guarantee the streetcar's service would not be cut.
The union, however, claims City Council has not followed through on a December 2014 motion calling for SORTA to hire the union that runs the Metro bus system, according to the lawsuit. But council motions are not legally binding.
"City Council is now attempting to defer its obligation to select a streetcar operator to the SORTA board of directors, an unelected and unaccountable board," McLinden said.
The city appoints seven of the 13 SORTA board members. Hamilton County commissioners appoint the other board members.
Negotiations between SORTA and the transit union have been contentious since last fall, and the parties still would have details to work out before entering a contract. The local union does not have qualified streetcar vehicle mechanics, and the city would have to pay extra to train workers.
It's uncertain whether more details would have to be worked out with a private company, because SORTA has refused to release information about any of the bid proposals.
That has frustrated City Council and the union. The Enquirer has a pending lawsuit against SORTA calling for the documents to be released to the public.
"As an agent of the city, SORTA continues to give the city misleading streetcar operating proposal projections, without any verifying information or documentation," McLinden said.
Read the lawsuit documents: