The MTA employs approximately 24,000 workers represented by unions other than TWU20 The TWU contract generally defines the “model” for other unions. If the collective agreements of these workers follow TWU`s salary model, they will cost the MTA $735 million from 2019 to 2023. Additional salary benefits similar to those of the TWU contract would cost an additional $45.4 million over the four years. In total, this would be $136.5 million more than the $643.9 million projected by the fiscal plan for an increase of 2%.21 (see Table 2). The TWU bargaining agreement increases costs faster than anticipated in the financial plan, but provides for savings that, if implemented, can offset most of the increased costs. However, there is a real risk that these savings will not be realized, which would increase the deficit of $638 million projected for the MTA over four years. This risk is reinforced by the extension of the model to other unionized workers. Metropolitan Transportation Authority (MTA) President and CEO Patrick J. Foye and Transit Workers Union (TWU) Local 100 President Tony Utano today announced an interim agreement between the MTA and TWU Local 100. The agreement, subject to ratification by union members and approval by the MTA board of directors, provides for a four-year contract for more than 37,000 workers in transit. The TWU and MTA will also work together to set goals and coordinate interests to increase productivity and to move towards these improvements, sharing all the savings achieved in the same way.
The agreement allows for the first time an exchange of positions between employees of similar professional classes among all TWU members, which provides employees with greater flexibility in the schedule, while ensuring adequate coverage of critical corporate tasks and minimizing overtime. The agreement allows third-party contractors to allow a unique in-depth clean-up of 180 metro stations. Under the agreement, NYCT will pay an average net salary increase of 2.3% per year until May 2023. Before health savings and increased availability are effective, a 1 per cent increase in wages is equivalent to about $36 million, offset by savings in the health plan and the availability of $44 million. Once the treaty is ratified, workers would increase by 2% in 2019, 2.25% in 2020, 2.5% in 2021 and 2.75% in 2022. Accessibility remains a top priority for the MTA and this agreement reflects the Commitment of the Agency and TWU to these projects. The agreement encourages the MTA`s unprecedented investment in the accessibility of 70 stations in the historic capital plan proposed for the period 2020-2024, by accelerating the implementation of these projects. The agreement also ensures that these important assets are reliably available to customers. The parties also agree to establish, with the MTA, TWU and accessibility advocates, the first-ever tripartite committee to ensure close cooperation and to continue to focus on the rapid and effective implementation of these projects. The contract contains other salary and benefit increases whose total cost was not included in the MTA reports.
The Citizens Budget Commission (CBC) estimates that these benefits are at least 0.5 per cent in addition to the 9.8 per cent of annual wage increases at a total cost of 10.3 per cent. CBC estimates the cost of these benefits over four years at least $64 million, bringing the total four-year cost to $1.1 billion $US. Among these changes are: this agreement also involves changes for the modernization of the health plan. These adjustments will save $27 million through a number of changes, including increases in the co-country to emergencies, to encourage the use of primary and emergency services; establishing network coverage throughout the country, greater flexibility and staff selection among suppliers; and adapting prescription drugs to encourage the use of generic options, among others.