The VTA board approved a new contract providing pay raises for bus drivers and light rail operators who struck for 17 days in March. The new deal includes annual increases of 4%, 3.5%, 3%, and 4% over four years, totaling 14.5%. While the transit agency faces deficits of $800,000 in FY26 and $14.1 million in FY27, VTA plans to manage these losses through cost-cutting without reducing transit services. The contract reflects a compromise between union demands and the agency's financial limitations.
The new contract for VTA bus drivers and light rail operators culminates in a 14.5% pay raise over four years, reflecting successful negotiations after a prolonged strike.
The VTA board's approval of the contract addresses the need for fair compensation while simultaneously grappling with a projected fiscal deficit of $14.1 million in FY27.
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