6. FTA - 13(c)

In addition to the Davis-Bacon provisions, public transportation agencies must commit to existing labor protection agreements in their expenditure of Federal funding. This requirement, set out at 49 U.S.C. 5333(b), requires that expenditures that would result in new service or expansion of existing service must be made in a way that does not reduce existing labor protection agreements. Specifically, this provision requires such agreements to include information that may be necessary for -

  The preservation of rights, privileges, and benefits (including continuation of pension rights and benefits) under existing collective bargaining agreements or otherwise;

  The continuation of collective bargaining rights;

  The protection of individual employees against a worsening of their positions related to employment;

  Assurances of employment to employees of acquired mass transportation systems;

  Assurances of priority of reemployment of employees whose employment is ended or who are laid off; and

  Paid training or retraining programs.

These provisions do not act as major impediments to public private partnerships in public transportation, because the requirements apply primarily to the expenditure of Federal funds, and are thus under the control of the public transit agency. The public transit agency must apply Federal labor protection provisions to any contracted activity with the private sector if it intends to seek reimbursement from Federal funds. To the extent that these provisions increase the cost of the project, the cost is factored into the bidder's offer.