Bus Department









			Coach USA buyout prompts questions The Bus Department continues to face challenges in the transit industry. Coach USA's recent buyout by Stagecoach Holdings, Ltd., of London, England, is certainly new to the industry. At this point and time, we do not expect any immediate impact on the companies on which we hold representation rights. I have discussed this matter with an officer of Coach USA, and he has informed us that there are no plans to change the operation of Coach USA, nor any of their subsidiaries. Stagecoach also owns or has interest in companies in the United Kingdom, Sweden, New Zealand, Portugal, Australia and Finland, and has about 12,000 buses. The Stagecoach group also runs rail units in the United Kingdom through a subsidiary. I have been in contact with local unions in New Zealand and the United Kingdom which are affiliated with the International Transport Federation (ITL) and whose members work for subsidiaries of Stagecoach. Several of those unions, under the ITL, are currently in contract negotiations. We will learn more about Stagecoach as those negotiations proceed, as well as from our investigations into the background of Stagecoach. From some of the information we have received, Stagecoach has been, and continues to be, a profitable company. We also know that, regardless of what Coach USA representatives tell us, we need to be cautious as to what can possibly happen and what legal ramifications, if any, such a takeover may have on UTU members. Once again, after a review of the takeover, we do not perceive any problems. In addition, there have not been any changes to any of the properties where we hold representation. In unity there is strength.

			B.J. McNelis (L-1594) 14600 Detroit Avenue Cleveland, OH 44107-4250 Voice (216) 228-9400 Home (440) 930-8689 Fax (216) 228-5755 E-Mail: C_McGint@utu.org