Metro is spending more than $1 million on legal fees fighting a wage increase for members of its largest union, according to the agency.
Legal fees from June 2008 through November 2009 reached $1 million for the arbitration with Amalgamated Transit Union Local 689, said Metro spokesman Steven Taubenkibel.
That tally does not include the money spent since November, when Metro appealed an arbitration panel’s binding decision to U.S. District Court in Greenbelt. The agency has since been involved in several days of testimony involving high-priced lawyers.
“We are still getting bills, as we speak,” Taubenkibel told the Washington Examiner.
The costs will continue to rack up, as the wage increases remain unresolved. Last month the federal court kicked the issue back to the initial arbitrator to clarify the thinking behind his order for Metro to pay 3 percent raises to bus and train operators over three years.
The transit agency and the union that represents some 7,000 Metro employees have been at an impasse over a new four-year contract since May 2008.
In November, the agency said it and ATU Local 689 had paid $60,000 combined for arbitration to settle the contract. At the time, a Metro spokeswoman estimated that the ensuing legal battle could cost up to $75,000 more. But the costs are turning out to be much higher.
In November, the agency said it and ATU Local 689 had paid $60,000 combined for arbitration to settle the contract. At the time, a Metro spokeswoman estimated that the ensuing legal battle could cost up to $75,000 more. But the costs are turning out to be much higher.
The union is shouldering its own legal fees, saying it has spent some $200,000 fighting the appeal.
The pricey battle comes as the transit agency faces a $189.2 million budget gap, and has proposed slashing service and raising fares to cover the difference before the new budget begins July 1. The agency also is slashing positions, laying off employees and cutting back administrative costs.
“In this troubled economy or at any time, spending seven figures in an attempt to kill benefits for bus and rail operators, mechanics and other front line workers is shameful,” said ATU 689 President Jackie Jeter. “As a steward of public resources, [Metro] would do well to drop its litigious, extravagant pursuit.”
At issue in the legal battle, the agency says, is millions of dollars. “It is important to note that a 1 percent reduction in wages from the union’s proposals would save Metro $5.5 million per year for every year going forward [forever], so we believe that the legal fees are worth the cost,” Taubenkibel said.
