This study comprises the second year's effort in a research project investigating the impact of labor-management relatfons on productivity and efficiency in urban mass transit. Overall focus of the research is on the impact of four controllable aspects of the labor-management situation (i.e., the legal framework, bargaining structure, the labor-management relationship pattern, and the collective agreement) on four components of transit performance: service effectiveness; service efficiency; employee withdrawal (1.e., turnover, absenteeism and tardiness); and organizational adaptability. The second year's research focused on three topics: (1) the causes and impacts of organizational commitment in lower-level transit employees; (2) the causes and impacts of turnover and absenteeism; and (3) the relationship between bargaining unit structure andi transit performance. Employee commitment to transit organizations had beneficial impacts on service efficiency, organizational adaptability and turnover. The extent of employees' commitment was related, in turn, to satisfaction with several aspects of treatment by the organization. Turnover, in moderate amounts and under appropriate organizational policies, was found to be cost-beneficial. Absenteeism, on the other hand, was found to be costly--an expense that could be reduced by suggested changes in polícy. Several common beliefs about the impact of bargaining structure on organizational effectiveness were unsupported.