There's cost-cutting. Then there's what's happening to parking workers at Minneapolis St. Paul International Airport.

Since the Metropolitan Airports Commission changed parking vendors last August and accepted the low-bid proposal of Ampco System Parking, parking attendants have seen:

? Most of their jobs eliminated.
? Their wages and hours slashed.
? Their health-insurance costs quadruple.
? Holidays and other benefits reduced.
? The airport step up efforts to replace even more of them with electronic kiosks.

Teamsters Local 120, which has represented airport parking workers for more than 40 years, holds MAC clearly responsible for the assault on its members' standard of living. Thirteen of the 15 members on the quasi-public commission are appointed by Gov. Tim Pawlenty.

Parking is a big money-maker for the airport, said Brad Slawson Jr., secretary-treasurer of Local 120, "but they keep cutting us to a bare minimum."

The airport collected nearly $55 million in parking fees in 2004 ? about 25 percent of its total revenue, said MAC spokesman Patrick Hogan.

Replacing people with kiosks
Workers are getting hit in two ways. First, the airport slashed the parking workforce from 120 to 56, Slawson said.

In their place, it installed and is heavily promoting electronic "e-Park" kiosks at all 32 exit lanes at the Lindberg and Humphrey terminals. In fact, since November, the airport punishes customers who prefer to pay cashiers ? making these customers pay $1 more than they'd pay if they used a credit card at the electronic kiosks.

"They're forcing you to use self-pay so they can get rid of more employees," Slawson said.

Hogan acknowledged that using kiosks is a cost-saving tactic. "It's cheaper than having a lot of employees at cashier booths." But he also argued that kiosks are a convenience for customers ? saving them time and money in a transaction that he compared to paying for gasoline at the pump.

Starting from scratch with contract
The workers who hung onto their jobs lost their union contract on Aug. 1, when MAC replaced their previous employer ? APCOA/Standard Parking ? with Ampco, which is based in Los Angeles.

James Laurent, manager of labor relations for MAC, said that because Ampco retained current employees, it is legally required to recognize the union and to negotiate with Local 120.

But because Ampco is a new employer, it is not bound by the previous contract, he said. Instead, it is able to set its own wages and working conditions ? at least initially.

Ampco certainly has done that. It cut wages by nearly $2.50 an hour, Slawson said, reducing top scale from $14.98 to $12.50. It raised health insurance premiums ? from $6 a month to $70 a month for single coverage, and from $60 a month to $240 a month for family coverage. Co-pays and deductibles also increased, he said.

Ampco cut paid holidays from 10 to 6. Employees lost seniority credit, so even long-term workers start from scratch on vacations. Part-time workers now outnumber full-time workers, meaning even some who kept their jobs have seen their hours diminish.

Who?s responsible?
Laurent and Hogan say MAC has no direct role in determining the wages, benefits and working conditions of parking employees. "It's between Ampco and its employees. We let them deal with it," Laurent said.

Once MAC accepted Ampco?s bid and approves its budget, Laurent said, "we step aside."

Hogan said that under the terms of its contract with MAC, Ampco is required to pay "market wages" to its employees. MAC will pay Ampco $464,943 to manage airport parking in 2005, Hogan said, with potential incentive payments of $44,000 more.

Slawson said MAC can?t wash its hands of the issue.

"They were the lowest bidder," he said of Ampco. "Well, the only way to lower costs is to lower wages and benefits."

Slawson said negotiations were scheduled to resume Jan. 19. "We've made a few strides, but we're still miles apart," he said.

Adapted from The Union Advocate, the official newspaper of the St. Paul Trades and Labor Assembly. E-mail The Advocate at: advocate@mtn.org