Anxious Weekend

After an anxious weekend the BART strike, chapter 2 (chapter 1 was in July), was apparently settled. The trains will roll again tomorrow after disrupting the daily schedules of hundreds of thousands of commuters who rely on BART. However, we're not out of the tunnel entirely because the agreement must still be approved by union membership next week.

The region's vulnerability to transit strikes has given rise to calls to outlaw them by some California Democrats. (Transit strikes have been banned even in such labor-friendly bastions as Chicago, Washington, D.C., and New York.) The San Francisco Chronicle says that it's time:

This strike may represent the most egregious and most counterproductive overreach by the unions. They and their consultants should have recognized in July that public sentiment was not with them.

Their obliviousness has brought the issue to the fore: Why should workers in a service so essential to Bay Area life and safety even be allowed to strike?

BART is fairly quick, reliable, and cheap, and, excluding the intra-San Francisco Muni system, far more people in the Bay Area rely on it every day than all other forms of public transportation. BART is also a good example of the danger of entrusting too much power to a single supplier, public or private, for-profit or non-profit.

We who live on the Peninsula are fortunate to have several commuting options to San Francisco: SamTrans express buses, CalTrain, BART, and, of course, one's own car. Diversification is good, because it means that you have a back-up plan. © 2013 Stephen Yuen

Too Much Power

San Bruno station is shuttered during the strike

Diversification isn't just a desirable attribute of investment portfolios, it's a fundament of capitalism. If purchasers of goods or services are too reliant on one supplier, purchasers are vulnerable to supply disruptions, price hikes, unfavorable contract renegotiations, and other characteristics of monopolies.

"Natural" monopolies, such as public utilities that have no competition because of their economies of scale, are regulated by the government. When the government operates the monopoly, consumers are for the most part helpless.

For thousands of commuters Bay Area Rapid Transportation (BART) trains are the only transit method. Alternative transportation--including driving--from the East Bay to San Francisco is costly and can be much slower. That is why the BART strike, which began Monday, is so devastating. It's also dysfunctional (bold added):

BART's labor stoppage is polluting the air, wasting commuters' time and, at least by one estimate, costing the overall Bay Area economy $73 million per day.

The most public sticking points that led to the strike have been raises and pension contributions, a dispute that is separated by $17.53 million a year.

When the monopolist sneezes, everyone catches cold---a cautionary tale about granting any entity, public or private, too much power over everyone's lives.
© 2013 Stephen Yuen
[Update - 7/5/13: trains will resume service for 30 days as management and unions attempt to reach a deal.]