Metro is worried it could lose more than $180 million a year in penalties if a new labor contract is so costly that the transit system can’t keep its budget under a cap imposed by Maryland and Virginia in the landmark funding agreement.
A three-member arbitration panel began a critical phase Monday in closed-door proceedings on a contract to set pay and benefits for Amalgamated Transit Union Local 689, Metro’s largest union.
The union is seeking a three-year contract, with a 4 percent wage increase in each year, according to people familiar with both sides’ positions, who spoke on the condition that they not be named to describe confidential talks. The union also is seeking additional adjustments for holiday pay, night work and cost-of-living allowances.
Metro is proposing a four-year contract that includes a three-year wage freeze. Workers would get a 2 percent pay increase in the fourth year, with the possibility of an additional 1 percent raise if ridership recovers.
Click here to read the rest of the article written by Robert McCartney over at the Washington Post