A group of school bus companies is set to suspend service to 150,000 students in the city and lay off 12,000 union workers due to a contentious contract issue.
They plan to inform the state on Monday, with the changes starting on November 1, in compliance with the Labor Adjustment and Retraining Notification (WARN) Act, which mandates advance notice of layoffs to the state Department of Labor.
The bus companies, including Logan, Transportation Corp., Consolidated, and Pioneer Transportation, have been relying on emergency contracts since their agreements with the city ended in June.
“Without a contract, the companies can’t make commitments for purchasing or long-term leases for buses needed to keep services running,” a draft letter to the Labor Department stated. “Thus, without extending the contract, our services are set to end on October 31, 2025.”
The letter criticizes the Education Policy Board for deciding to terminate employment at the end of the business day on October 31 by not approving a new five-year contract.
“A long-term emergency extension isn’t feasible for these trucking firms,” commented John Crowley, a lawyer representing the companies.
According to Crowley, a five-year cycle is essential for maintaining workforce stability and funding new buses and real estate necessary for safe operations. He believes the companies have reached an agreement on a new five-year contract with Mayor Eric Adams and the city’s Department of Education.
The impending halt of bus services is particularly notable as it comes just three days before the November 4 election, potentially affecting the mayoral and city council races.
However, PEP members are resisting the ratification of the new contract, citing insufficient protections for workers and preferring to extend the current contract for several months, as per a draft notice acquired by the Post.
The 24 members of the PEP board include a majority appointed by the mayor, but some vacancies might influence upcoming votes. The next board meeting is scheduled for October 29.
Earlier this month, at the mayor’s office request, the bus companies postponed sending out warning notices in hopes that the contract dispute could be resolved quickly.
Under the proposed agreement, the bus companies would agree to improve GPS reporting, acquire 200 electric vehicles, and invest $345 million in services from minority- and women-owned businesses to enhance bus service, as noted by company representatives.
PEP President Gregory Faulkner accused the bus companies of threatening to cancel routes and leaving students “hostage” amid complaints regarding subpar service.
“I don’t get how these companies think they can threaten to leave students—many with disabilities—stranded without transport, and that will coerce us to extend their contract,” Faulkner stated on Sunday night.
He described the decision to cut bus services as a “surprise reaction by a privileged contractor with an outdated contract,” asserting that the proposed new contract would roll out in November after the mayoral election, rather than this month.
Faulkner also mentioned that the incoming mayor should have a say in this significant contract, and it remains uncertain whether PEP members will approve the deal.
He remarked that the drastic decision to discontinue vital bus services reflects a lack of concern for both drivers—who face risks due to inadequate job protection—and for student services, which are “held hostage” in this contract negotiation.
Faulkner pointed out that the issues concerning school bus service have long created tension with parents and students. He noted, “We’ve listened to numerous public comments about the poor service from these bus companies, which receive billions in taxpayer funding every year under 46-year-old contracts.”
PEP has established a school bus advisory committee that will soon provide recommendations for improving service quality.
“We aim to ensure the delivery of school bus services with integrity, safety, and punctuality while focusing on better communication with students and their families,” he added.
The Mayor’s Office and the Department of Education declined to comment.
The last notable school bus strike occurred in 2013, following a dispute regarding job protections for workers during the city’s competitive bidding process.
