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Jan 2, 2006
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Governor Unaware Of Secret MTA Deal
January 02, 2006

Governor George Pataki said Sunday that he was never made aware of a side agreement that would give thousands of workers pension refunds - even if he vetoes that provision of the contract.

According to published reports, there is a secret, side agreement between the MTA and the Transport Workers Union that acts as a back-up plan to pay transit workers if elected officials veto the contract.

Earlier this week, Governor Pataki indicated that he would block the contract because of the pension clause included within it, which he says violates state law.

MTA Chairman Peter Kalikow kept the details of a side agreement quiet from the governor. An editorial in the Daily News says Kalikow never told Pataki that the way he was able to reach a contract was by promising to pay for pension refunds to transit workers using MTA money.

The governor says the secret deal is "extremely upsetting."

The New York Times is reporting that the three mediators who helped end the strike say they were also unaware of a side agreement.

Union officials say that under the separate agreement signed by both the MTA and the TWU, the MTA has to pay regardless of whether lawmakers in Albany try to block it.

The MTA will pay transit workers between $110 million and $200 million in compensation even if elected officials like Governor Pataki try to veto. Under the agreement, 20,000 transit workers would get refunds of payments they made into their pension plans between 1994 and 2001.

The governor has vetoed similar legislation twice in the past, and a spokesperson indicated Friday that he may do so again. Governor Pataki may also be able to tell his appointees on the MTA board to reject the contract and the side deal.

The deal reached by the MTA and the Transport Workers Union last week still needs to be approved by the union's membership. Some union members are unhappy with the deal. They are holding a rally in Union Square Monday to urge workers to vote no on the proposed contract.