The MTA employs approximately 24,000 workers represented by unions other than TWU20 The TWU contract generally defines the “model” for other unions. If the collective agreements of these workers follow TWU`s salary model, they will cost the MTA $735 million from 2019 to 2023. Additional salary benefits similar to those of the TWU contract would cost an additional $45.4 million over the four years. In total, this would be $136.5 million more than the $643.9 million projected by the fiscal plan for an increase of 2%.21 (see Table 2). The TWU bargaining agreement increases costs faster than anticipated in the financial plan, but provides for savings that, if implemented, can offset most of the increased costs. However, there is a real risk that these savings will not be realized, which would increase the deficit of $638 million projected for the MTA over four years. This risk is reinforced by the extension of the model to other unionized workers. The impact of the severe COVID 19 pandemic on the operation of the company has created uncertainty about the ability to predict specific implementation dates for certain contractual elements that the company must undertake. That is why the parties have agreed to meet within 60 days of ratification and ongoing, in order to reach agreement on all outstanding agreements after the ratification date and not in the implementation agreement reached today. If the MTA negotiates similar agreements (and savings) with its other bargaining units, it will cost $11.7 million more than the financial plan provides. In order to maintain the neutrality of the financial plan`s effects, the agreements should include greater savings, including changes to labour rules, to offset the effects of these increased costs.
In addition, the Employment Services Productivity Committees established by the TWU Treaty should set productivity targets and report public quarterly on savings to ensure accountability. In January 2020, members of the Metropolitan Transportation Authority`s (MTA) largest fare unit, Transport Workers Union (TWU) Local 100, ratified a new employment contract. The treaty, which covers May 16, 2019 until May 15, 2023 and more than 37,000 employees, increases compensation and includes savings initiatives.1 The 9.8% cumulative salary increase will cost more than $1 billion by 2023, $129 million more than in the November 2020-23 MTA budget. In addition, the non-wage costs of the four-year agreement will cost at least $64 million. Some of these costs are offset by savings on health care and staff availability; However, the net cost of the agreement will increase the MTA`s four-year budget deficit by $16.5 million. While these agreements do not have a significant negative effect if all the savings are realized, the MTA did not recognize the possibility of “net zero” wage increases, where productivity would have offset the cost of all increases. If this had been the case, the MTA could have significantly reduced its budget deficits during the year. It should not miss the opportunity to introduce changes to labour rules in other collective agreements. If the MTA can achieve savings comparable to the TWU agreement, it could save $31.2 million per year, for a total of $124.9 million in savings between 2020 and 2023. This would result in an additional cost of $11.7 million over the financial programming period. However, if the savings are similar to those negotiated with the TWU, they may suffer the same risk of being neglected if employee behaviour is not sufficiently altered.
Please read the following interim agreements: Fleet Service Mechanics – Related Maintenance Control Technicians Material Logistics Specialists – Planners Maintenance Training Specialists March 27, 2020 The Association and American Airlines have reached an agreement on implementation of certain elements of the JCBAs pending successful ratof of those contracts yester.