The TWU bargaining agreement increases costs faster than anticipated in the financial plan, but provides for savings that, if implemented, can offset most of the increased costs. However, there is a real risk that these savings will not be realized, which would increase the deficit of $638 million projected for the MTA over four years. This risk is reinforced by the extension of the model to other unionized workers. Please read the following preliminary agreements: Fleet Service Mechanics – Related Maintenance Control Technicians Material Logistics Specialists – Planners Maintenance Training Specialists If the MTA can achieve savings comparable to the TWU contract, it could save $31.2 million per year, saving $124.9 million between 2020 and 2023. This would result in an additional cost of $11.7 million over the financial programming period. However, if the savings are similar to those negotiated with the TWU, they may suffer the same risk of being neglected if employee behaviour is not sufficiently altered. The MTA has taken a step in the right direction by incorporating productivity committees into the new TWU treaty. The MTA should set productivity targets and report public quarterly savings to ensure accountability, and similar committees should be established with other unions if labour reduction changes are not negotiated directly in other collective agreements. The impact of the severe COVID 19 pandemic on the operation of the company has created uncertainty about the ability to predict specific implementation dates for certain contractual elements that the company must undertake.
That is why the parties have agreed to meet within 60 days of ratification and ongoing, in order to reach agreement on all outstanding agreements after the ratification date and not in the implementation agreement reached today. While these agreements do not have a significant negative effect if all the savings are realized, the MTA did not recognize the possibility of “net zero” wage increases, where productivity would have offset the cost of all increases.