New York's Metropolitan Transportation Authority made a revised offer to the Long Island Rail Road workers in an attempt to avoid a strike.
The new offer would give 17% pay increases over seven years including a retroactive period to 2010, Anita Miller, the MTA's director of labor relations, said at a press conference Tuesday afternoon in Manhattan. The offer also calls for health care contributions of 2% from existing employees and 4% from new employees.
According to Miller, the sides intend to meet Friday. "This shows our willingness to roll up our sleeves and get things done," she told reporters.
Miller said the latest offer involves no changes in contributions for retiree health coverage, for pension benefits or in any work rules. Each step in pay grade would require two years of service, instead of one.
Eight LIRR unions, who have worked without a contract for four years, have threatened to walk off the job July 20, when a cooling-off period expires and either side can initiate "self-help" -- jargon for a strike or lockout.
Two emergency mediation boards, which the federal Railway Labor Act requires and which President Obama appointed, have failed to broker a settlement. The second board called the MTA's offer inadequate. The LIRR unions took a strike vote on Feb. 5.
"What we're offering is 100% of what was demanded by the presidential emergency board," said Miller.
LIRR, the largest commuter railroad in the United States. It carries an estimated 285,000 passengers each weekday.
The union consortium recommended 17% pay hikes, including retroactive raises, over five years while the MTA recommended 11% over six years, based on the five-year deal the MTA reached last month with Transport Workers Union Local 100, which represents subway workers.
MTA chairman Thomas Prendergast said in May that he expected the TWU contract to set a pattern for other contracts, but the LIRR offer veers from the pattern. "This is a different kettle of fish than Local 100 TWU," an authority official said, speaking on background.
A message seeking comment was left with Anthony Simon, a spokesman for the union coalition and an official with the Sheet Metal, Air, Rail and Transportation Union.
LIRR and Metro-North Railroad, as commuter rail lines, operate under the Railway Labor Act.
The authority official estimated that the deal, if approved, would cost more than the $326 million extra the MTA estimated had the proposal followed the TWU pattern.
The MTA would not reveal the site of Friday's meeting. "We don't want to create a stakeout situation," said head MTA spokesman Adam Lisberg.
Both sides have been preparing contingencies. The MTA's finance committee on Monday approved alternate parking sites such as Citi Field in Queens and Nassau Community College in Garden City for emergency buses and carpooling. MTA expects the move to cost $12,000 daily, real estate director Jeffrey Rosen told board members. Also this week, members of the Long Island Commuter Council issued leaflets to riders urging them to make backup plans for getting to work.
The MTA is one of the largest municipal issuers with roughly $34 billion of debt as of May 30. Moody's Investors Service assigns an A2 rating to the MTA's primary credit, transportation revenue bonds.
Fitch Ratings and Standard & Poor's rate them A and AA-minus, respectively.
