In this interest arbitration, the Panel rejected NYCT’s claim that it did not have the ability to pay and therefore should not be bound by the pattern set by TWU Local 100. For the period from January 15, 2009 to January 14, 2012, the Panel awarded two 2% raises in each of the first two years and a 3% raise in the third year of the contract, as well as a reduction in health insurance contributions. The Panel found that the reserve fund, savings in debt service, money set aside for contributions to the GASB fund, and the balance already in the GASB was more than ample to fund this contract even if this pattern was applied to the other MTA unions. The Panel also noted that money could be borrowed from the capital fund and that the MTA should try to renegotiate interest rate swaps with banks, which cost tax payers approximately $115 million dollars per year.
Amalgamated Transit Union, Locals 1056 and 726 and N.Y. City Transit Auth., TIA 2011-009 and 2011-010 (May 12, 2012) (Panel Chairman: Nicolau)
