According to the Daily News, the MTA is giving up on part of its appeal of the TWU arbitration award while keeping another part of it — the third year of raises — alive. Pete Donohue reports that the MTA will honor two-thirds of the arbitration award, and TWU workers will now enjoy a retroactive four percent raise for 2009 and a four percent raise in 2010. The agency, however, will seek to have an appeals court overturn the third year of raises which guarantee a 3.5 percent increase in 2011. The agency will also seek to quash part of the award that lowers employee contributions to health care and raises the MTA’s obligations. According to Donohue, this decision to pay will cost the agency approximately $100 million this year.
As expected, labor union leaders were none too pleased with this development. John Samuelsen contined to bluster about this appeal and said that workers, who are getting eight percent in raises in a bad economy and at a time when few private-sector employees are enjoying raises, aren’t happy with the news. Still, if MTA Chair and CEO Jay Walder is serious about cutting costs, addressing the MTA’s rising tide of labor and pension obligations must be a part of that effort. The workers won’t like it, but the agency will continue to be hindered by those costs without some sort of compensation reform. More on that later.





One hundred and three days ago, Jay Walder assumed control of the Metropolitan Transportation Authority. As an incoming CEO and Chairman with a career’s worth of experience in transit, Walder set about to figure out a way to improve the MTA. As he worked to figure out how to streamline the MTA and improve services, the authority ran headlong into budget problems, and his review shifted to focus on cost cutting measures and efficient spending.
Thomas DiNapoli, the New York State Comptroller, issued a brief report on the state of the MTA ridership levels yesterday. The report is written in a way to draw headlines. “Ridership declines cost MTA $100 million,”