White House panel's recommendations hailed by LIRR unions, dismissed by MTA

A panel of mediators selected by the White House to help resolve a labor dispute between the MTA and five LIRR labor organizations has ruled that the transit authority should pay raises higher than it was offering, but not quite as high as the unions have demanded, officials said Friday.

The non-binding recommendations — 14% raises over four years and a $3,000 lump-sum payment — were hailed as a victory by unions, while a Metropolitan Transportation Authority official called it "disappointing" and said it wouldn't accept the terms.

The Presidential Emergency Board empaneled by President Donald Trump issued its proposal for a settlement in the dispute, which, if unresolved, could trigger an LIRR union strike as early as January.

The MTA has maintained that the five organizations, which represent about half the LIRR’s 7,000 union workers, should accept the same deal as that already approved by most other MTA unions. It includes 9.5% in raises over three years.

The unions, which cover LIRR locomotive engineers, electricians, signal workers, ticket clerks, and others, have said the offered wage increases don’t keep up with inflation, and have pushed for a fourth year with a 6.5% raise, for a total wage increase of 16%.

According to the unions, in a report issued Friday, the Trump-appointed mediators recommended a fourth year at 4.5%, for a total wage increase of 14% over the life of the contract, plus the payment.

Although MTA officials had suggested they would consider higher raises than the ones offered other unions in exchange for concessions on work rules, the board recommended no such give backs, the unions said.

Union officials on Friday framed the board’s ruling as a victory.

"While we don’t agree with everything the PEB had to say ... this is a step in the right direction," Kevin Sexton, national vice president of the Brotherhood of Locomotive Engineers and Trainmen and spokesman for the coalition of LIRR unions, said in a statement. "Let’s use this report as guidance, get back to the bargaining table and agree to a fair settlement."

In a statement, MTA external relations chief John McCarthy said the transit authority is "disappointed, but not surprised" by the board's recommendations, given that federal law "has always favored unions' arguments and preserving antiquated work rules over responsible budgeting and customer needs."

MTA officials "do not accept" the board's recommendation, McCarthy said.

"Our riders deserve better than that," McCarthy said. "We look forward to continuing this process."

The office of Gov. Kathy Hochul did not immediately respond to requests for comment.

With the federal recommendations in hand, both sides are expected to return to the negotiating table in the coming weeks with hopes of averting the first LIRR union strike in more than 30 years. The LIRR workers were days away from a strike in September before unions requested the federal intervention.

Under federal law, the unions, the MTA or Hochul could request a second Presidential Emergency Board, which could delay a potential strike until May.

By Alfonso A. Castillo

alfonso.castillo@newsday.com@alfonsoreports

Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.