The 2005 New York City transit strike was a strike in New York City called by the Transport Workers Union Local 100 (TWU). Negotiations for a new contract with the Metropolitan Transportation Authority (MTA) broke down over retirement, pension, and wage increases. The strike began at 3:00 a. m. EST on December 20, 2005. Most New York City Transit Authority personnel observed the strike, effectively halting all service on the subway and buses.
Millions of commuters were affected. The strike officially ended at 2:35 p. m. EST on December 22, 2005. Service was restored overnight, with all transportation systems fully operational by the morning commute of the 23rd. On Tuesday, December 27, 2005 the executive board of Local 100 of the TWU accepted a 37 month contract offer from the MTA. The 37 month length was crucial as the last contract ended on December 15, causing disruption of the New York City economy just in the middle of the holiday season.
Now the next contract would expire in mid January. The TWU demanded that all members of the union receive a 6% salary increase per year for each of the 3 years of the contract, plus more expensive accommodations for maternity leave, and more money to spend on station maintenance. The MTA offered a 3% raise the first year, a 4% raise the second year, and a 3. 5% raise the third year. The striking workers reportedly earn an average of about US$48,000 annually.
The TWU also wanted to lower the age of retirement (at which point the employee is eligible for a full pension) from 55 to 50. The MTA had wanted to raise the retirement age for newer workers from 55 to 62, but dropped this demand in exchange for pension contributions from new workers of 6% of gross salary per year for the first 10 years of employment. Under the previous contract, workers contribute 2% to their pension plan.
At a news conference the morning of December 22, 2005, it was announced that the state mediator, Richard Curreri, had reached a preliminary agreement between the MTA and a TWU team including Roger Toussaint for transit workers to return to work for a time without a contract. Progress had also been made on the pensions issue. At a news conference on the evening of December 27, 2005, Roger Toussaint announced an agreement with the MTA calling for no change in the pension (very costly to the MTA and very valuable to workers), 3%, 4%, and 3. % annual salary increases for the next three years respectively plus a 1. 5% of salary cost to workers to help defray health care costs. Beginning in June 2006, the Taylor law penalties were deducted from striking workers’ checks. Withholding of the Union check off was withheld until early 2007. The TWU agree to pay over $300,000 a month towards strike-related penalties. In this case we can see the problem of communication between the company and his employees, and customers. Strike continued only two days, and company prevents it.
After the strike company sign 37 monthly agreement. In this strike has positive and negative sides. Positive side is strike continued not so long, only 2 days, and its shows that company solve the problem very quickly. A negative side of this case is the management. I think all problems become from there. Also strategic problem has. The strike was a lesson for all of in the TWU and the labor movement. It is clear that following the same old leaders alienated from their membership will not be effective.