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Union contract could cause MTA new financial woes
The MTA is poised to deliver handsome raises to transit workers, and straphangers might pay the price if the deal blows a hole in transit’s budget.
Union arbitrators are expected to settle Wednesday on annual raises of at least 3 percent across three years for subway and bus workers as part of a new contract, sources said. But the MTA’s new budget only includes reserves for a 1.5 percent raise this year and about 2 percent in 2010, officials said last month. “This is a delicately balanced budget,” interim MTA chief Helena Williams said. “To the extent that any award comes in with numbers greater than that is a financial risk.” The MTA will raise fares by 7.5 percent in 2011 and 2013, but officials said additional fare hikes or service cuts wouldn’t come to pass — unless certain doomsday scenarios occurred, including a larger-than-expected contract settlement. Mayor Michael Bloomberg Monday called the contract “worrisome.” “The straphangers of today are going to pay for this increase,” Bloomberg said. “I don’t know how the MTA is going to make up the difference here.” City Hall itself came under fire recently when the city provided annual raises of at least 4 percent for municipal employees and corrections officers. Spokesmen for the MTA and Transportation Workers Union Local 100 declined comment. The contract covering about 36,000 workers expired in January. It will include some union givebacks, which are still being negotiated, sources said. The payout is similar to what MTA Bus Company workers won in June. Jason Fink contributed to this report. hhaddon@am-ny.com
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