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Say hello to the $2.75 subway ride and the $125 monthly unlimited MetroCard?
MTA Chairman Tom Prendergast revealed at a hearing Thursday that the authoritys labor problems could result in riders getting socked with a 12% fare hike next year triple the percentage increase the authority already has in store.
The wallet-busting scenario could happen if the Metropolitan Transportation Authority has to give all of its workers modest raises without work-rule changes that would produce an equal amount of budget savings, he said.
It would be difficult for me to overstate the adverse repercussions for both our riders and our region, Prendergast said in warning of the possibility of the 12% fare hike during a hearing held by state legislators in Albany.
The only other option the MTA could take that Prendergast mentioned would be for the authority to slash billions from its capital construction and maintenance program, which would translate into scaled-back projects to purchase new buses and trains, replace rails, fix signals and overhaul stations.
This would be a terrible choice for our riders and our region, Prendergast said of the alternative.
The MTAs budget plans already envision a 4% increase in fares and tolls next year. A 12% hike, applied evenly across all fare-payment options, would boost the price of the unlimited-ride 30-day MetroCard to about $125, from the existing $112; elevate the cost of a 7-day MetroCard to about $34, from the current $30; and send the base fare up to $2.75, from $2.50.
One leader of a union representing MTA workers said the authoritys brass cant be trusted.
The MTAs credibility in predicting costs and revenue is less than zero, railed Anthony Simon, a spokesman for a coalition of Long Island Railroad worker unions. They will say anything to try to pit riders against employees.
All but one of the roughly 60 unions that represent MTA workers are working without a contract because transit officials and labor leaders have been unable to successfully negotiate new agreements in recent years. But the one union that does have a contract, covering the 650-member Metropolitan Transportation Authority Police Department, got it, including retroactive raises, thanks to a vote of the MTA board on Wednesday a development that did not go unnoticed by leaders of other unions. MTA officials have said the new contract for its police force provides three years of raises without increasing expenses because of savings created through union concessions, like having new recruits devote 2% of base pay to cover healthcare premiums; but the officials have declined to provide a cost analysis of the concessions that would show how much savings will be produced.
In the ongoing impasse in contract negotiations between the MTA and seven LIRR unions, a presidential board of independent mediators in December recommended the authority grant annual raises averaging 2.85% per year for six years. Under the proposal, workers would have to make their first-ever contributions to healthcare premiums representing about 2% of base pay but wouldnt have work-rule changes imposed.
The proposal was made after the independent panel heard testimony from both sides about the MTAs finances, the compensation given to other railroad workers in the region, the cost of living in New York, and other relevant issues.
Earlier this month the MTA rejected the mediators proposal as one that would be far too costly. Under federal law the LIRR workers, who have been without a contract for more than three years, can legally strike as early as March if the authority does not request additional hearings.
If the proposed contract floated by the mediators were applied to all of the MTAs unions, the additional cost in the first year, including retroactive raises, would be about $700 million, Prendergast told lawmakers on Thursday. And in subsequent years the additional cost would be about $400 million per year, he said.
But the mediators who handled the LIRR case analyzed the MTAs finances and determined the authority could afford to pay for modest raises of 2.85% for the railroad workers. They said the MTAs finances have improved along with the economy since the depths of the Great Recession. The mediators cited the states creation a few years ago of new revenue streams for the authority, mainly a payroll tax applied to businesses in the MTAs service area.
The MTA was created by and is essentially an extension of New York State. If necessary, government officials could allocate additional subsidies to cover MTA operations, the mediators in the LIRR case noted.