For the second time since last 2013, a Presidential Emergency Board convened to help mediate the long-simmering labor dispute between the LIRR and UTU Local 645 has sided with the union. In a non-binding decision, the PEB urged the MTA to adopt the UTU call for wage increases of 17 percent over five years, no change in pension obligations and only the promise to negotiate over work rules with no real reforms in sight. As the MTA is unlikely to accept this decision, such a ruling paves the way for the UTU to strike in 60 days.
During the recent negotiations, the MTA had proposed a deal similar in form to that accepted this week by the Transport Workers Union Local 100. The offer included modest increases, both retroactive and in the future, as well as substantial pension reform and wage structures. The PEB did not view this as a comparable or fair offer and has rejected it. Unlike last time, though, when the first PEB stated that “It simply cannot be concluded that the MTA’s current financial position is one in which it is unable to pay for wage adjustments that are otherwise warranted,” the new decision (available here and below) stays away from a discussion of the MTA’s finances.
Still, it is highly unlikely that the MTA will accept the PEB-backed proposal, and the agency said as much tonight while hoping to stop a strike before it begins:
The MTA is disappointed that the Presidential Emergency Board did not accept as the most reasonable offer our proposal for 11 percent raises over six years for the Long Island Rail Road unions, consistent with the agreement overwhelmingly ratified by the Transport Workers Union. Our proposal is a fair and reasonable way to recognize our employees’ hard work and provide them with competitive wages, retroactive pay, quality healthcare and secure pensions. If adopted, the Board recommendation would significantly reduce funds available for the MTA Capital Plan. We still believe a fair, reasonable and affordable agreement can be negotiated at the bargaining table, as it was with the TWU.
In all likelihood, though, the UTU will strike, and the MTA is probably OK with that. Had the PEB sided with the LIRR, the optics of a strike would have been more favorable to the agency. The UTU would have been the side to reject the contract offer, but instead, the MTA will appear as though it is goading on a strike when it eventually rejects this deal. But it’s hard to say that a strike shouldn’t happen; as I discussed last night, a strike could be beneficial in the long run even as it exacts short-term pain.
So now we wait. The UTU and MTA have 60 days to attempt to negotiate something palatable to either side, and the PEB decision is nothing more than advisory. If I were a betting man, though, I’d put money a strike, and that may not be the worst outcome around.
After the jump, read the PEB decision.