On May 16, 2022, NYC Transit Workers Union members received a 2.75 percent basic wage increase under the last year of their contract. Previously, the agreed upon contract in 2019 provided for wage increases of 2% in May 2019, 2.25% in 2020 and 2.5% in 2021 for a compounded total of 9.8% over four years.

The annual costs of the wage increases will grow from $42 million in 2019 to $354.3 million in 2023, for a total of more than $1 billion through 2023. The MTA’s November 2020-2023 financial plan assumed 2 percent annual increases and set aside $907.7 million for wage increases. It anticipated a cumulative shortfall of $638 million.

The current contract includes other increases to pay and benefits. The Citizens Budget Commission estimated that these benefits would add at least 0.5% to the 9.8% in annual wage increases, for a total cost of 10.3%. It further stated that the four-year costs of these benefits to be at least $64 million, bringing the total four-year agreement cost to $1.1 billion.

Inflation was 4.16% in 2021 and 8.26% in 2022. Why would the TWU not ask under the next round of contract negotiations with the MTA for salary increases to keep up with inflation? Given the MTA’s ongoing financial crises, commuters and taxpayers have to ask how they will find the additional billions in funding to meet transit workers demands. What will the MTA budget under the next financial plan provide for employee wage increases?

Will riders be asked to pay more at the fare box? Will motorists be asked to pay increased tolls, a portion of which is transferred from the Triborough Bridge and Tunnel Authority to transit. Will City Hall or Albany increase operating assistance to cover these costs? LIRR union workers will want the same salary increases obtained by NYC Transit TWU members in their next contract as well.

Larry Penner

Larry Penner is a transportation advocate, historian and writer who previously worked for the Federal Transit Administration Region 2 NY Office.