Welcome
Thank you for visiting. First Student is committed to our people and want to ensure you have all the correct information and details on our latest offer, and how it all relates to you.
Our most recent offer
Presented to the Union on March 26, 2025, our most recent offer includes:
- Immediate pay increase with additional raises in each year of the contract.
- More holidays.
- Excellent health insurance with company premium contribution.
- Retirement with automatic company contributions.
- No changes to the popular travel driver program.
To see more details on our offer, click below.
Click Here to See Our Most Recent Employee Comm
The 2 issues at hand
There are two issues holding up the CBA, and both come down to your union wanting to control you.
Issue 1 = Retirement
First Student is committed to providing retirement benefits that are fair and provide long-term financial stability. To that end, we will fund a retirement account for each employee with automatic contributions for every hour worked.
At issue is where First Student will put that money. We are committed to contributing to the Pacific Coast Benefits Trust, using the current retirement plan. Your union wants those contributions to be switched to the Western Conference of Teamsters Pension Plan. There are some key differences between the plans that you need to be aware of:
Pacific Coast Benefits Trust
- All contributions are immediately vested - meaning it is yours right away.
- Distributions begin at age 62. The termination distribution option allows you the flexibility to access your funds earlier than retirement if needed.
- Lump sum or monthly payment distribution options allows you to have more control over the timing of your payments.
Western Conference of Teamsters Pension Plan
- All contributions are subject to a 5-year vesting schedule, which means you would not be entitled to the full balance for at least 5 years.
- Distributions only begin at early retirement, normal retirement or retirement due to disability.
- Monthly payments based on your life expectancy or a combination of you and your spouses, if applicable. Lump sum payments are only available in specific situations.
Issue 2 = Travel Driver Program
Many drivers enjoy the benefits of the popular travel driver program, which allows our drivers to earn extra money performing out-of-town/travel work. First Student wants to continue the program in its current form and opposes any attempt to curtail or eliminate it. The Union seeks the elimination of the travel driver program even though its members want to continue it.
What you need to do
First Student firmly believes our offer is a good for every employee, and we want you to have the opportunity to vote on this package. If you agree, make sure your union representatives know that you want them to hold thet vote and that you do not want to go out on strike.
Do you have questions?
Please reach out to:
Greg Newman
Region Vice President
First Student
Phone: 206-379-6391
Email: gregory.newman@firststudentinc.com
Most common questions answered
With a defined contribution plan, every dollar contributed is secured in an individual account under the employee’s name. This ensures fairness, transparency, and full control over their retirement funds. Employees can see exactly how much is being saved for their future, and they won’t risk losing their benefits if they decide to leave before a set number of years. In contrast, a defined benefit pension plan with a 5-year vesting period means employees could work for several years and walk away with nothing, a risk we want to eliminate to protect our employees’ financial futures. Our goal is to provide a retirement plan that ensures all employees receive 100% of the contributions made on their behalf, giving them the security and flexibility they deserve.
The union would have to answer this question, and, as of today, they have not shared any information with First Student or with employees on what the actual payouts would be.
The employee would not be eligible to receive retirement benefits under the Western Teamster Conference Defined Benefit Plan. Any contributions made to the plan would remain within the plan, and the employee would not receive any payouts or benefits.
No, employees will not be able to opt in or out of each plan. All employees will be set up on the same plans.
A: Defined Contribution Plan
✅ Immediate Ownership – Contributions are made directly into an account in the employee’s name, ensuring they have full ownership of their retirement funds.
✅ Portability – Employees can take their retirement savings with them if they leave the company, regardless of how long they’ve worked.
✅ Guaranteed Contributions – Every dollar contributed by the employer is allocated to the employee’s account, meaning employees receive 100% of the money paid in on their behalf.
✅ Investment Growth Potential – Employees can invest their contributions, with the potential for their savings to grow over time.
✅ Flexibility & Transparency – Employees have visibility into their retirement savings and can make informed decisions about their financial future.
A: Defined Benefit Pension Plan (5-year vesting requirement)
❌ No Ownership Until Vested – Employees must work a minimum of five years before becoming eligible for any retirement benefits. If they leave sooner than five years, they receive nothing.
❌ Lack of Portability – The pension is tied to the union, meaning employees cannot take their retirement savings with them if they move on before the 5-year vesting requirement.
❌ Uncertain Benefit Amount – Future pension payments depend on the plan’s financial stability and the formulas used to determine benefit amounts, which could affect the final payout.
❌ Risk of Lost Contributions – If an employee leaves before reaching five years, all employer contributions remain in the plan and do not benefit the employee.
We are not determining which retirement plan employees must use. We currently have a proposal with the Union to ensure that an amount equal to 10.5% of each employee’s pay is directly contributed to their existing retirement plan, which is a defined contribution plan. This plan is fully compliant with the new Washington state law, and the proposed contribution increase aligns with the law’s requirements. Our priority is to support the long-term financial well-being of all employees. The defined contribution plan is a highly beneficial option. This plan ensures that employees receive the full retirement benefits intended for them, with the added advantage of full ownership and control over the funds contributed for their future. Our goal is to offer a retirement solution that is transparent, equitable, and truly works for each employee by guaranteeing that 100% of the contributions made on their behalf are accessible to them.
No. First Student’s contribution to your retirement plan will not be withheld from your pay. It will be 100% funded by the company and contributed to your individual retirement plan. This is a significant benefit because it is in addition to your hourly pay. We prefer the defined contribution plan because it allows employees to retain the money if they change companies and provides full access to the funds upon retirement or termination.
The union would have to answer this question, and as of today, they have not shared any information with First Student or with drivers regarding the actual payouts.
Our current proposal would provide employees with low- to no-cost health insurance for single coverage.
While the company cannot speak for the union, First Student firmly believes that out-of-town work falls within our management rights, and we intend to continue offering these opportunities. This work provides significant financial benefits to employees, including an 8-hour pay guarantee, paid travel, per diem, and hotel accommodations. Participation is entirely voluntary and serves as an additional opportunity for employees to increase their earnings.
We are working closely with the Teamsters to avoid a strike. We feel that a strike would be very disruptive to our families and the students.