Your observations about SEPTA’s recent wage increases and the potential impact on fare prices are accurate. Here’s a breakdown:
Wage Increases and Strike Avoidance:
In November 2024, the Southeastern Pennsylvania Transportation Authority (SEPTA) reached a tentative one-year agreement with the Transport Workers Union Local 234, which represents approximately 4,000 bus, trolley, and subway operators. This agreement includes a 5% wage increase and enhanced safety measures, such as bulletproof enclosures for bus drivers. The union had previously authorized a strike, but negotiations led to this agreement, averting a potential work stoppage.
Fare Increases:
SEPTA has proposed significant fare hikes to address a $240 million annual budget deficit. The proposed increases include a 21.5% fare hike starting January 1, 2025, with an initial 7.5% increase potentially taking effect as early as December 1, 2024. If both fare hikes are approved, single-ride costs on buses and subways would rise from $2 to $2.90, and rail fares would also see substantial increases.
Impact on Riders:
These fare increases are intended to generate additional revenue to help mitigate SEPTA’s financial challenges. However, they also raise concerns about the affordability of public transportation for daily commuters. The proposed changes aim to address the budget shortfall but may place a greater financial burden on riders.
In summary, SEPTA’s recent wage increases for workers and the proposed fare hikes are interconnected efforts to balance employee compensation with the organization’s financial sustainability. While the wage increases address workers’ demands and help prevent strikes, the resulting fare hikes could impact the affordability of public transportation for Philadelphia residents.