Transit Negotiations Go Down To The Wire

(New York- WABC, December 15, 2005) (WABC) -- We are down to the final hours as the MTA and the Transport Workers Union work furiously to avoid a potentially crippling transit strike.

Eyewitness News reporter Lisa Colagrossi and the latest.

The TWU and the MTA have been in negotiations since early this morning and we've been hearing that both sides are willing to negotiate in terms of wages but there are several sticking points that are still problematic. One of them, according to MTA Chairman Peter Kalikow, is pensions.

MTA Chairman Peter Kalikow: "The MTA's long term financial outlook, like every business and government in this country, is seriously clouded by the extraordinary growth in pensions and health care costs. It might be easy to ignore this fact but that would be a disservice to both our riders and the city."

The MTA basically wants new hires to contribute more and retire at an older age than current MTA employees, and the union is saying that is simply unacceptable. But the MTA is really digging in their heels saying that the union has to understand the severity of this crisis when it comes to pension.

The MTA also says that if the contract negotiations breakdown they would like the union to go into binding arbitration to try and settle this.

TWU President Roger Toussaint, however, countered that the MTA's proposal for pensions would not save the MTA any substantial amount of money.

TWU President Roger Toussaint: "The proposals regarding a new deal for pensions would save the MTA absolutely no money whatsoever in terms of their liability and their pension contributions. Contrast this with a one billion dollar plus surplus."

TWU President Roger Toussaint: "What you have here is a scandalous attempt by the MTA to jump on the bandwagon of an adverse national climate. We said yesterday that we will not agree to arbitration. We continue to maintain that position today and will continue to maintain that position tomorrow. Transit workers, our members, have a right to decide their destiny and to vote to make decisions about their futures."

Chairman Kalikow says that a strike is not going to make these big issues go away.

Transit Authority's President has taken a larger role talking to TWU's president Roger Toussaint. Both sides say they're flexible on wages, which is a bit of a change but are still far apart on medical benefits.

After a lot of doom and gloom, perhaps this is a glimmer of hope.

The union chief says last night the tone of the negotiations picked up when the president of the Transit Authority finally joined the talks during the final 90 minute of negotiations.

Ainsley Stewart, Union Vice President:"Yes there was some change in tone."

But did it come in enough time to avert a strike at midnight tonight?

Ainsley Stewart, Union Vice President:"This is just one small area where we think we see a glimmer of hope. Okay..some light at the end of the tunnel. We are actually hoping it could actually light up the entire table.

Last night, Eyewitness News' N.J. Burkett was at the talks in Midtown.

Transit workers made contingency plans of their own. Strike captains who left the hotel tonight with placards are hoping they'll never have to use.

But it doesn't look good.

John Mooney,Union Vice President: "The MTA and the union are miles apart ... it's like we haven't even started negotiating. We're talking about stuff we talked about two months ago, simple stuff."

The talks have been stalled amid stark differences on wages and medical benefits.

Even the MTA's veteran negotiator seemed deeply worried.

Gary Dellaverson, MTA Chief Negotiator: "We are not in a good place. We should be closer now. There should be more progress and I can't stand here and say that I'm comfortable with the negotiations as they stand at this instance."

He said the MTA was prepared to compromise on wages. And the union later signaled its own flexibility.

But the MTA is asking workers to begin paying a portion of their medical insurance for the first time -- although it would only apply to new employees.

The union president said that is entirely unacceptable. The MTA says it is absolutely essential, and many workers themselves aren't sure what to think.

N.J. Burkett: "Is that something you would go out on strike for?"

Marian Pons-Chavez, MTA Bus Driver: "Good question."

Marian Pons-Chavez is a bus driver in Queens.

Marian: "I couldn't answer that .. that would not be a part of my issue. My issues are more important than the other issues."

Contract talks resume at 7:00 this morning at the Grand Hyatt. Both sides are expected to go at it until tonight's midnight contract expiration.

TWU is set to hold a rally at 4:00 p.m. at 42nd Street and Park Avenue.

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