Greyhound Bus Lines strike of 1983 (Seattle)

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The Greyhound Bus Lines Strike of 1983 in Seattle was part of a nationwide seven-week-long strike of the members of the Amalgamated Transit Union working for Greyhound Bus Lines. [1] In Seattle, 175 drivers and terminal workers who were represented by ATU locals 1384 and 1055 walked off the job at 11pm on November 2, 1983. In total, more than 70 daily incoming and outgoing trips were cancelled in Seattle. [2]

Strike action Work stoppage caused by the mass refusal of employees to work

Strike action, also called labor strike, labour strike, or simply strike, is a work stoppage, caused by the mass refusal of employees to work. A strike usually takes place in response to employee grievances. Strikes became common during the Industrial Revolution, when mass labor became important in factories and mines. In most countries, strike actions were quickly made illegal, as factory owners had far more power than workers. Most Western countries partially legalized striking in the late 19th or early 20th centuries.

Amalgamated Transit Union

The Amalgamated Transit Union (ATU) is a labor organization in the United States and Canada that represents employees in the public transit industry. Established in 1892 as the Amalgamated Association of Street Railway Employees of America, the union was centered primarily in the Eastern United States; today, ATU has over 200,000 members throughout the United States and Canada.

Greyhound Lines intercity bus company

Greyhound Lines, Inc., usually shortened to Greyhound, is an intercity bus common carrier serving over 3,800 destinations across North America. The company's first route began in Hibbing, Minnesota in 1914, and the company adopted the Greyhound name in 1929. Since October 2007, Greyhound has been a subsidiary of British transportation company FirstGroup, but continues to be based in Dallas, Texas, where it has been headquartered since 1987. Greyhound and its sister companies in FirstGroup America are the largest motorcoach operators in the United States and Canada.

Contents

Deregulation and Competition

Several significant events acted as compounding catalysts for the strike of 1983. Among them were a series of federal deregulations of the transportation industry in the 1970s and 80's and an increase in competition from Greyhound's main competitor Trailways as well as from smaller newer market entries.

Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a result of new trends in economic thinking about the inefficiencies of government regulation, and the risk that regulatory agencies would be controlled by the regulated industry to its benefit, and thereby hurt consumers and the wider economy.

Trailways Transportation System

The Trailways Transportation System is a US-based network of approximately 70 independent bus companies that have entered into a brand licensing agreement. The company is headquartered in Fairfax, Virginia.

Airline Deregulation Act of 1978

On October 24, 1978, the 95th congress signed the Airline Deregulation Act of 1978 . Like the Federal Bus Regulatory Reform Act of 1982, this law allowed airlines greater control over its operations and increased the market ease of entry for entrepreneurs. [3] This had the sum effect of reducing airline fares to the point they became competitive with bus fares. For example, both People Express and Southwest Airlines were able to charge less than Greyhound for many destinations. [1]

Southwest Airlines Co. is a major United States airline headquartered in Dallas, Texas, and is the world's largest low-cost carrier.

Federal Bus Regulatory Reform Act of 1982

On September 20, 1982, the 97th congress enacted into law the Federal Bus Regulatory Reform Act of 1982. The law deregulated many aspects of the bus industry, most noticeably by reducing restrictions on bus lines to add or remove stops and by increasing the ease of entry of entrepreneurs into the bus service market. [4] Shortly following the enactment of the new law, the Interstate Commerce Commission received over 2000 applications to operate new bus services. [1] Congress had been heavily lobbied by members of the bus industry to approve deregulation and Greyhound Bus Lines itself had insisted that some of its managers write letters to Congress in support of the bill. [5]

Interstate Commerce Commission

The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including interstate bus lines and telephone companies. Congress expanded ICC authority to regulate other modes of commerce beginning in 1906. Throughout the 20th century several of ICC's authorities were transferred to other federal agencies. The ICC was abolished in 1995, and its remaining functions were transferred to the Surface Transportation Board.

Lobbying attempting to influence decisions of government officials

Lobbying, persuasion, or interest representation is the act of attempting to influence the actions, policies, or decisions of officials in their daily life, most often legislators or members of regulatory agencies. Lobbying is done by many types of people, associations and organized groups, including individuals in the private sector, corporations, fellow legislators or government officials, or advocacy groups. Lobbyists may be among a legislator's constituencies, meaning a voter or bloc of voters within their electoral district; they may engage in lobbying as a business. Professional lobbyists are people whose business is trying to influence legislation, regulation, or other government decisions, actions, or policies on behalf of a group or individual who hires them. Individuals and nonprofit organizations can also lobby as an act of volunteering or as a small part of their normal job. Governments often define and regulate organized group lobbying that has become influential.

Bus Competition

In 1982, the Amalgamated Transit Union agreed to a wage freeze of its members working for Trailways Bus Lines. Trailways' future was threatened financially and the ATU accepted the freeze in order to keep its members employed. With lower labor costs, Trailways was able to better compete, and over the course of the next months ridership fell considerably for Greyhound Bus Lines. At the same time, Greyhound was losing business to small new market entries such as Rohrer Bus Lines on the East Coast. Trailways also had affiliates nationwide who would carry the Trailways logo but were actually small independent companies. By the middle of 1983, Greyhound had reported 34 million dollars in operating losses from the previous two years. Greyhound blamed this loss in revenue to their comparably higher labor cost; 62% as opposed to 40% for its competitors. [1] [6]

The Seattle Strike Timeline

Contract Negotiations between Greyhound and the ATU

In 1983, as a response to increasing competition and decreasing revenue, Greyhound Bus Lines came to the negotiating table with a 9.5% pay reduction and additional benefit reduction for drivers and terminal workers resulting in an overall compensation reduction of 17% to 25%. The ATU rejected this proposal and ended negotiations on October 31, 1983.

Drivers walk off the job (November 2, 1983)

On November 2, 1983 at 11pm, after 48 hours of notice, 175 Greyhound bus drivers and terminal workers who were members of ATU L1384 and ATU L1055 walked off the job. Picket lines were set at the terminal on 8th avenue and Stewart St. and at the maintenance garage at 1250 Denny Way. The picketers headquartered themselves at the Camlin Hotel in Downtown Seattle. [2]

Camlin Hotel hotel in Seattle, now a timeshare

The Camlin Hotel is an historic hotel in Downtown Seattle, Washington. The story of the hotel is intertwined with the story of Seattle. The hotel was added to the National Register of Historic Places in 1999.

Downtown Seattle central business district

Downtown is the central business district of Seattle, Washington. It is fairly compact compared with other city centers on the West Coast of the United States because of its geographical situation. It is hemmed in on the north and east by hills, on the west by Elliott Bay, and on the south by reclaimed land that was once tidal flats. It is bounded on the north by Denny Way, beyond which are Lower Queen Anne, Seattle Center, and South Lake Union; on the east by Interstate 5, beyond which is Capitol Hill to the northeast and the Central District to the east; on the south by S Dearborn Street, beyond which is Sodo; and on the west by Elliott Bay, which is part of Puget Sound.

ATU L587 honors Greyhound Strike (November 7, 1983)

While workers from L587 did not walk off the job, they vowed support for their fellow ATU workers. [7]

Greyhound Ultimatum (November 8, 1983)

Greyhound Bus Lines sent a letter to the union telling workers it must decide whether or not they would be returning to work by Monday November 14, or else they would be replaced by new hires. At this point, 45,000 job applicants had already been interviewed nationwide. [8]

Greyhound offers half price fares (November 15, 1983)

Greyhound Bus lines announced half price fares would be in effect between November 17 and December 15. Strike negotiations remained at an impasse with Greyhound rejecting a 3 year pay freeze offered by the ATU. [9]

First sign of violence (November 15, 1983)

A day after the return to work deadline, a picketer was struck by a vehicle being driven by a non-striking Greyhound mechanic. Fault remained undetermined, and the picketer did not suffer life-threatening injuries. [9]

Violence erupts (November 17, 1983)

200 strikers confronted the first Greyhound bus to depart from Seattle since the strike began. The bus was being driven by a non union driver and was heading to Portland. 15 police officers clashed with picketers while police in riot gear stood by. The bus suffered damage to its headlights and windshield wipers.

Strike Ends (December 3rd, 1983 - December 20th, 1983)

On December 3, 1983, Union leaders and Greyhound Bus Lines reached a tentative agreement to end the strike. [10] The agreement reduced wages by 7.8% instead of the originally proposed 9.5%. In addition, workers took a 4% cut in pension benefits and accepted a new pay schedule that compensated new hires at 20 to 25% less than before. [11] On December 19, 1983, the TA was ratified by the membership, and workers returned to work the next day. [1]

Effect on Rural Communities of Washington State

During the strike, rural towns, like the city of Ephrata, in Eastern Washington were hardest hit by the Seattle strike because there were no alternative forms of public transportation. [12] Shortly after the strike began, Greyhound Bus Lines announced that it would drop service to 1325 rural communities nationwide and in Washington State; by December 2, 1983, 4 rural bus routes were cancelled. The routes were Olympia to Toledo, Vancouver to Maryhill, Colfax to Rosalia and Ephrata to Spokane. Earlier in the year the Washington State Utilities and Transportation Commission had denied requests stating that the affected communities did not have meaningful alternatives to Greyhound Bus Services. After deregulation of the industry, the Interstate Commerce Commission approved reduction of service to these areas. [13]

Greyhound Continues to Operate During Strike

The day after the strike began, about 20,000 people went to Greyhound offices around the country to replace the 12,500 striking ATU workers. [14] Over the course of three days, 500 applications were submitted in Seattle alone. [15] During this time, Trailways, Greyhound's competitor, had an 800 percent increase in bus business in Seattle alone. By November 17, 1983 Greyhound buses were rolling again from the Seattle terminal. [16]

Aftermath

The strike signaled the start of a slow decline of the bus industry in general and Greyhound specifically. 1984 was marked by 1500 layoffs, and the year afterwards Greyhound sold 120 terminals and laid off an additional 2000 employees. Many of its routes were then franchised to smaller competitors. After acquiring Trailways and absorbing 1400 of their employees, a round of negotiations in 1989 ended with another strike in June 1990. More violent than the last, the strike of 1990 saw shootings and bomb threats and the death of a picketer. This strike lasted until 1993.

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References

  1. 1 2 3 4 5 Schisgall, 1985
  2. 1 2 seattle daily times, November 3, 1983 pp.1,19
  3. ↑ http://thomas.loc.gov/cgi-bin/bdquery/z?d095:SN02493:@@@L&summ2=m&
  4. ↑ thomas.loc.gov/cgi-bin/bdquery/z?d097:HR03663:@@@L&summ2=m&
  5. ↑ interview with ex-manager, Greyhound Bus Lines
  6. ↑ seattle daily times, November 9, 1983
  7. ↑ seattle daily times, November 7, 1983 p.14
  8. ↑ seattle daily times, November 8, 1983
  9. 1 2 seattle daily times, November 15, 1983
  10. ↑ seattle daily times, December 4th, 1983
  11. ↑ http://www.angelfire.com/al/silverball/strikes.html
  12. ↑ seattle daily times, November 6, 1983
  13. ↑ seattle daily times, December 2, 1983
  14. ↑ seattle daily times, November 4, 1983
  15. ↑ seattle daily times, November 6, 1983.
  16. ↑ seattle daily times, November 17, 1983
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