MTA Says Fare Increase Possible After Transit Union Pay Raise
Helena Williams, the MTA’s interim executive director, says that a fare increase on the MTA is possible after bus and subway drivers received an 11.3% pay rise over the next three years.
The MTA’s financial plan calls for fare hikes in 2011 and 2013 but doesn’t account for the $350 million cost of the new deal, approved yesterday by a 2-to-1 vote of an arbitration panel.
Transport Workers Union Local 100 members will get raises of 4%, 4% and 3.08% over the three years, or 11.3% compounded.
The arbitration ruling also lowers health care contributions to 1.5% from 1.53% of salary, which will no longer apply to overtime.
Holy crap! Can I get into some of that great health care coverage? On a $40,000 salary, that’s $600 a year or $50 a month.
“It is going to clearly throw the financial plan out of balance,” said Williams.
The ruling says the MTA can pay for the raises with federal stimulus funds, but could dip into capital construction funds if deficits loom – delaying expansion projects but not core maintenance.
The problem with this situation is not that the transit workers are getting raises, but how the city is dealing with how to pay for these raises. Increasing the fares is not the way to go. Many people disagree that the income generated in New York City by the bus and subway system should go to the LIRR or MetroNorth. They feel that the money generated within NYC should remain there for the bus and subway system.
Riders on the buses and subways are also increasingly irritated that fares are continually hiked while service is degraded. Administrators in charge, however, are the ones that straphangers should direct their anger towards. They are the ones that cut service and overextend their current staff while implementing new programs, such as the general managers, that continue to suck money from riders for unnecessary administration positions.
