SAN JOSE — As the strike of Valley Transportation Authority workers entered its third week Monday, the union voted to reject the agency’s most recent contract offer.
The new proposal from VTA, which was given to the Amalgamated Transit Union Local 265 Sunday following a special board meeting, offered an 11% raise over three years in exchange for the union agreeing to proposals that would reduce absenteeism, as well as language regarding arbitration that both sides agreed to and a compromise regarding holidays.
The raise would be split into a 4% raise in the first year, a 4% raise in the second year and a 3% raise in the third year. The proposal would keep the operators as the fifth highest paid in the United States, the agency said on social media Monday.
ATU walked off the job March 10 after negotiations for a new contract fell apart the week before, primarily due to the two sides disagreeing on arbitration language and the size of a pay raise. The strike has left the roughly 100,000 people who use the VTA’s buses and trains each day without their normal transportation routes.
The new contract offer was rejected by 83% of voting members. Of the 1107 total ballots cast by union members, 919 were no votes and 188 were yes votes on the new contract proposal.
“Our members want to get back to work. The service our members provide this community is invaluable, and our customers have suffered greatly these past two weeks, and we want bus and light rail service restored immediately,” said ATU Local 265 Raj Singh at a news conference Monday. “But our members will only return to work with a fair contract, one that guarantees their rights, their dignity and their safety.”
In a statement Monday afternoon, the VTA said that their most recent offer was “more than fair” and offered “competitive pay” and “strong benefits.”
“At a time when so many workers across industries are facing uncertainty and job losses, VTA is proud to offer stability and opportunity,” the agency said. “VTA’s latest proposal reflects our commitment to our workforce, and we urge our employees to embrace this chance to secure their future and return to work.”
ATU was originally slated to vote Saturday on a proposal from the VTA that included a 10.5% raise over three years. Union leaders urged ATU members for a unanimous no vote because negotiations “hit a deadlock” and “the agency refuses to budge.”
The vote was postponed pending the updated offer from the VTA following the special board meeting. Over the weekend, ATU expressed concerns that the new proposal included rollbacks of overtime calculations and attendance policies.
The two sides were in negotiations for several days last week, which resulted in a compromise on a key sticking point of arbitration language.
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When contract negotiations first fell apart, the union was asking for an 18% raise over three years, while the transit agency was offering a 9% raise over the same time period.
The VTA is facing an estimated budget deficit exceeding $46 million for 2025, VTA Controller Jayden Sangha said last week, adding that any additional raises for employees would dig the agency deeper into the deficit and would likely result in layoffs down the line.
The VTA also filed a lawsuit seeking to stop the strike on the grounds that the union was breaking a “no strike” clause in their previous contract. The two sides are set to appear before a judge Wednesday.
Staff writer Jason Green contributed to this report.
