TWU

As the MTA’s economic comes to a head this week with Senate and Assembly votes due on a funding plan, the agency is searching for money every way it can. One of those options — eschewing pay raises for its workers — may just start some labor unrest at at time when the MTA can least afford it.

Pete Donohue reported on Friday that the MTA has informed union leaders it does not have the money raises this year. This is sure to go over poorly with a generally defensive union. Writes Donohue:

Metropolitan Transportation Authority CEO Elliot Sander has invited union officials to meetings next Tuesday to discuss the fiscal crisis that has the authority preparing to raise fares up to 30% and enact deep service cuts. Sources said Sander will announce the MTA can’t afford to pay even the meager 1.5% raises, totaling about $50 million, included in its austere budget approved in December.

The contract with the largest union – Transport Workers Union Local 100, representing bus and subway workers – expired in January. An arbitration panel is charged with dictating the new terms of a contract. Citing the opinions of labor experts, The News reported exclusively on Tuesday that a wage freeze was possible because arbitration centers on an employer’s ability to pay raises and provide improved benefits.

The MTA wouldn’t reveal if it intends to ask the arbitration panel to maintain the existing pay rates for approximately 36,000 bus and subway workers.

This is the unmentioned underbelly of the MTA funding crisis. Many union jobs will be lost either through attrition or flat-out firings; others won’t see raises; and the agency is under increasing political pressure to rein in the bureaucracy.

Right now, the MTA could really use the support of its union, but that may require union leaders to compromise publicly. A political move like that could be a dangerous one for a fiercely protective union.

Over the next few weeks, I’m going to roll out some employment- and benefits-related stories concerning the MTA’s financial position and its workers. This effort by the MTA to limit pay raises may just be the tip of labor ice berg.

Late last week, MTA CEO and Executive Director Elliot Sander predicted that the transit authority and the Transport Workers Union would be able to avoid another strike as the TWU contract is set to expire later this month. While the two sides have been negotiating for the last few weeks, they are not going to come to a negotiated resolution and will instead head to arbitration.

A few minutes ago, the MTA released the following statement:

Over the past several months, the MTA and TWU Local 100 have discussed a possible agreement on a contract effective January 16, 2009. However, due to complications associated with today’s current economic climate, we have reached an impasse and have jointly decided to arbitrate contract terms.

The Union, on the other hand, does not seem as optimistic:

After months of discussions with the M.T.A., a settlement could not be reached. As the contract moves to arbitration, we wait to see whether transit workers will be treated fairly or in a manner disparate to the other workers who serve this city.

While arbitration is not as ideal as a negotiated contract and can lead to animosity further down the road, both sides have so far seemed willing to do what it takes to avoid a strike. That is, of course, good news for straphangers, but today’s development throws a wrench into those plans. The TWU is obviously not too happy about the arbitration development, and another strike would probably throw MTA bailout efforts into turmoil.

I’ll have more on this development as the story develops.

Local 100 of the Transit Workers Union draws out some of the most vehement debates about labor unions in New York. Clearly one of the strongest chapters of the AFL-CIO in the city, opponents of the TWU 100 claim it holds the MTA hostage during labor negotiations while pro-labor proponents defend the workers to the death.

Now, as a result of sanctions leveled against the Transit Workers Union in the aftermath of the illegal December 2005 strike, the Union could be facing an economic crisis that may threaten its very existence. NY1’s transit beat reporter Bobby Cuza notes that the loss of “dues check-off,” the Union could lose much of its $20 million it draws in through this system. Cuza writes:

With every paycheck that NYC Transit sends its employees, it automatically deducts union dues, and sends that money directly to Transport Workers Union Local 100. But effective June 1st, “dues check-off” is being revoked as punishment for the December 2005 strike…

Without “dues check-off,” the union will have to convince each individual worker to pay their dues voluntarily, whether by check, credit card or through an automatic payment program. So far only about half have pledged their commitment to pay, but Toussaint says they are still reaching out to many of the 35,000 workers.

According to the report, the situation may not be as dire as it first sounds. Even Toussaint’s opponents within the TWU are working to convince the members to donate their dues even without the dues check-off procedure in place. Furthermore, the TWU can apply for dues check-off reinstatement 90 days after this penalty goes into effect.

In addition to this sanction, Toussaint spent a short time in jail and the Union had to fork over $2.5 million in fines as a result of the strike. As word gets out about these sanctions, the debate over the future of the TWU in New York City is bound to be bitter. It always is.