Boston Globe: Its workers to get raise, but "T" funding in doubt

[marmar]

Its workers to get raise, but T funding in doubt

By Noah Bierman
Globe Staff / July 9, 2008



The MBTA, which recently depleted its rainy-day fund to plug a $75 million budget deficit, learned this week that it is facing an additional $150 million in wage increases and back pay over the next two years, and officials acknowledged they do not know how they will pay for it.

"I don't have an answer for you today," said Daniel A. Grabauskas, general manager of the Massachusetts Bay Transportation Authority. "It's going to be very difficult, and that's one of the things that we're going to have to figure out."

An arbitrator gave T management a major victory this week in its negotiations with its largest union, requiring retirees to contribute to their healthcare costs for the first time and requiring all employees to pay a bigger share of the costs.

But the same ruling gave the union a 13 percent pay increase over four years, including retroactive payments for the past two years. If the same wage increase is included in the T's contract with its other unions, as is customary, it will cost the agency an additional $150 million over the course of the contracts, according to T estimates.

While the T knew that raises were likely as part of these contract negotiations, it had not set aside money to cover the cost. ......(more)

The complete piece is at: http://www.boston.com/news/local/articles/2008/07/09/its_workers_to_get_raise_but_t_funding_in_doubt/