The Metropolitan Transportation Authority struck a three-year deal with the union that represents its 40,000-strong subway and bus workforce late Wednesday that will raise wages nearly 10 percent and offer $4,000 essential worker bonuses for service during the coronavirus pandemic.
The agreement runs through May 2026 and brings a quick end to the negotiations between the state-run transit behemoth and Transport Workers Union Local 100, which is the agency’s largest and most powerful union.
The deal, which still must be ratified by the TWU’s membership, raises wages by 3 percent in 2023, another 3 percent in 2024 and 3.5 percent in 2025 — worth 9.8 percent over three years.
It would also a $3,000 bonus this year and a $1,000 bonus next year.
TWU members would also continue to deduct just 2 percent of their salaries for health care.
“These victories, and others you will see in this package, were not easily obtained,” said TWU Local 100 president Rich Davis. “The MTA took a hardline stance, not wanting to give an inch of ground on wages or benefits.”
A vote is expected to take place in July, a union spokesman said.
The raises are in line with those won by the Big Apple’s municipal labor unions in recent agreements, experts said.
However, the raises are larger than the 2 percent hikes the MTA included in its budget earlier this year.
The agreement comes just weeks after Gov. Kathy Hochul and state leaders agreed to a budget deal that hiked the payroll tax in the five boroughs to bail out the perpetually cash-strapped MTA with a new $1.1 billion a year in funding.
And it comes just days after MTA officials announced they would push ahead with planned fare and toll increases that range from 3 to 7 percent this summer, which would hike the cost of a subway or bus ride to $2.90.
Officials have countered that both are needed to stabilize the agency’s finances and will help fund major improvements to the agency’s midday, evening and weekend service, including on the frequently complained-about G and J, the C, and the N, R lines.
MTA officials declined to provide any additional details about the agreement, including if they won work rule concessions or productivity improvements that would offset the new spending, opting to simply confirm that a deal had been reached.
“We are grateful for the leadership of Governor Hochul and the New York State Senate and Assembly for passing a budget that secures mass transit, and we acknowledge the hard work and dedication of both negotiating sides to reach this point,” said MTA spokesman John McCarthy.