As we transition back to normal operations after an historic 17-day service disruption, Santa Clara Valley Transportation Authority (VTA) remains committed to achieving a balanced agreement that honors the dedication of our employees and serves the needs of the community.
Contract negotiations are an ongoing dialogue where both parties exchange ideas, refine proposals, and seek common ground—a process built on mutual compromise and collaboration.
VTA has put forward updated packages to Amalgamated Transit Union (ATU) Local 265 leadership, offering competitive wages and comprehensive benefits. Currently, no new bargaining sessions are scheduled, meaning employees remain under the terms of the existing contract—the same as before the strike.
We want all employees to stay informed about VTA's flexibility and proposals. As of now, two viable packages are available for ATU members to consider. Note the wage progression examples below are based on a current operator salary of $90,000.
Option 1: A 10.5% wage increase; here’s a breakdown of wages for an operator of 4%, 3%, 3.5% over the three-year contract period:
Each package has been thoughtfully designed to be fair, equitable, and adaptable to various preferences. Here are the specific details:
|
Option 1 |
Option 2 |
|
|
Overtime
Under the Fair Labor Standards Act (FLSA), overtime pay is required for all hours worked beyond 40 hours in a week. However, time off—such as sick, vacation, or holiday leave—does not count as hours worked when calculating overtime. Employees must physically work 40 hours before qualifying for overtime pay.
Our ATU Collective Bargaining Agreement (CBA) currently goes beyond this requirement by counting all leave hours, including sick leave, as "hours worked" for the purpose of calculating overtime pay. This arrangement is more generous than what the law mandates.
Our new proposal seeks to adjust this by excluding sick leave hours from being counted as "hours worked" for overtime calculation. Importantly, this change does not impact the amount of additional shifts or hours available to work, and VTA is not removing overtime opportunities. Vacation, incentive, and floating holiday hours will continue to be treated as before.
At present, an employee could be scheduled for five days of work, call in sick for two days, work their two scheduled days off, and receive overtime pay for those additional days—despite physically working only five days in the week. Under the new proposal, the two additional days would still be available to work, but they would not be compensated at the overtime rate unless the employee physically works over 40 hours in the week or works over an 8-hour day. This adjustment ensures alignment with fiscal responsibility while maintaining fairness.
Budget
This time of year is crucial as we refine our budget for the upcoming fiscal year beginning July 1, 2025. While sales tax projections have fallen short of expectations, we are committed to navigating these challenges thoughtfully and responsibly. Nearly 80% of our operations depend on sales tax revenue, and slower-than-expected growth requires us to make careful decisions about service levels and operational priorities.
We understand these changes have an impact, and we want to be transparent about the steps we’re taking to manage our resources effectively. With our initial projection of wage increases of 3% per year VTA was facing deficits for the foreseeable future, and any increases above the 3% level adds to those deficits. We are committed to retaining our current service level for our passengers and will strive to achieve this with approximately 1,059 bus and light rail operators. To reduce the deficit as low as possible the following will occur:
- Reduce/eliminate requested programs/contracts/budget throughout all divisions with possible impacts to safety, security, operations, non-essential training, planning, and others
- Implement a freeze on all new position requests
- Implement immediately a hiring freeze on all non-operator positions
These efforts will reduce the deficit; however, they will not likely balance our budget for FY26 and FY27. As a result, the transit capital fund (which is the source for all local funding of transit capital needs including state of good repair, vehicle purchases, rail rehabilitation, etc.) will not see any funding increases for the next two fiscal years.
We deeply appreciate the hard work and dedication of our employees as we navigate this process.
Summary
Our proposals represent a fair and balanced offer that ensures our operators remain the second highest paid among the 27 Bay Area transit agencies and the fifth highest paid in the nation, while our transit mechanics lead as the highest paid nationwide. VTA is dedicated to supporting our employees through competitive wages, comprehensive benefits, and opportunities for career growth.
In today’s economic climate, VTA's compensation package is strong. Across industries, federal layoffs are on the rise, Silicon Valley companies are undergoing downsizing, and privatization efforts are targeting heavily unionized agencies like the U.S. Postal Service and Transportation Security Administration (TSA). Moreover, as recently as last week, the President signed an Executive Order ending collective bargaining rights for federal agencies involved in national security, such as the Department of Defense, Veterans Affairs, and more.
Against this backdrop, VTA is a good place to work and remains committed to providing a strong wage and benefits package that upholds our fiscal responsibilities to employees and the communities we serve.