MTA Strike

In the week before Christmas another crippling event struck the citizens of New York City. In the past it has been terrorist attacks and blackouts, but this time it was a strike by the transit workers from the Metropolitan Transit Authority (MTA). This strike forced 7 million daily riders to find new ways to get to work, and caused many businesses to be hit hard during the busiest week of their year. While many people simply called in sick, others working in the city persevered, whether by carpooling with strangers, walking, or riding a bike.

The strike began Tuesday, December 20th, shortly after four days of negotiations broke down. On one side of the table was Peter S. Kalikow, Chairman of the MTA, along with Governor Pataki and Mayor Bloomberg. In order to address the concerns of high wages, rising pension costs and an $800 million deficit in the pension fund, they asked for a change in the pension system and that future workers pay part of the premiums for their health insurance. On the other side of the negotiations was the union president, Roger Toussaint, who was not only trying to secure an impressive contract to appear aggressive but also address the concerns of many workers who complained that the low wages agreed upon in previous contracts did not keep pace with inflation. He also wanted to ensure that future transit workers won’t be worse off than current workers. It was the union president’s position that created a sticking point in negotiations. Toussaint felt that the transit workers should never pay for health insurance and that annual raises should be higher in order to keep pace with inflation. When these demands were not met, the workers of the transit system walked out at 3am. Toussaint feels the demands of the transit workers are reasonable, since the MTA has a $1 billion surplus and could easily afford the cost. However, the MTA and the officials governing the city are worried about such a favorable contract - not because of the costs it would entail, but because this could lead other unions demanding an identical increase, which the city couldn’t afford.

The tone of the debate would change quickly. Mayor Bloomberg initially called the strike a “cowardly attempt” to bring the city to its knees to create leverage for the MTA’s own bargaining position. But soon it calmed to a conciliatory tone in which the two sides discussed progress toward an agreement.

When the strike finally ended on December 23 - sixty hours later - the union ordered the workers to return to their jobs, and both sides returned to the table. They each made some concessions: the MTA agreed to the workers to part of their health insurance premiums for the first time, and the city agreeing to higher raises each year. While the settlement still must be ratified by both sides, this agreement serves to effectively keep the transit system running throughout the holiday season and into 2006. However, it will only last for 37 months, and further issues could yet again bring the city back to the brink of another crippling strike.

In the end, pretty much everyone got what they wanted. The transit workers get better raises and now must pay part of their health insurance, as many workers in the private sector currently do. The city is running again, for now.