South Bay Transit Workers Approve New VTA Contract, Ending Stalemate

Updated 12:19 p.m. Wednesday

The Santa Clara Valley Transportation Authority‘s largest labor union has approved the transit agency’s latest contract offer, bringing an end to nearly a year of negotiations that included a historic and disruptive 17-day strike in March.

Members of the Amalgamated Transit Union Local 265, including bus drivers, light rail operators, maintenance workers and dispatchers, voted 689-298 to ratify the new proposal from the VTA, which includes a 14.5% wage increase spread over four years. The voting took place all of Tuesday, and the results were tallied by the early morning hours on Wednesday.

Per the agreement, if the union returns the signed version of the contract to the agency by noon Wednesday, the VTA will present the contract to the agency’s board of directors for final approval at their meeting on Thursday afternoon.

Once approved by the board, the contract would go into effect on June 9 and run through June 4, 2029.

Greg Richardson, VTA’s deputy general manager, said at a press conference Wednesday morning that officials are “delighted” that the union supported the contract, which he said will allow for the agency to predictably manage labor costs.

“This agreement achieves an important and necessary balance to allow VTA to operate within the financial limits of declining sales tax-based revenue, while also providing meaningful wage increases that reflect the vital contributions of our employees,” Richardson said.

ATU Local 265 President Raj Singh was not immediately available for comment Wednesday morning.

In a letter to the union, Singh thanked members for voting and sharing their voices.

“We acknowledge and recognize that these past several months have been really difficult, that this offer did not completely address all of our needs. However, you, the majority, have spoken and the democratic process must be recognized,” Singh wrote.

The pact puts an end to months of tense and at times bitter contract talks between the agency and the union that began in August but didn’t result in a contract, leading to a historic strike on March 10.

The work stoppage by roughly 1,500 ATU members ground VTA services to a halt, leaving tens of thousands of riders across Santa Clara County without the buses and trains they rely on. Large proportions of VTA riders represent populations with fewer options for transportation, including many who earn very low incomes or are students.

The VTA almost immediately sued the union, claiming the action violated their contract’s “no-strike” clause. A county judge initially denied the agency’s request for a temporary restraining order against the union, but he approved a preliminary injunction on March 26 that abruptly brought the strike to an end.

Following the ruling, workers were quickly ordered back to their roles, and service has run as normal for the past two months while negotiations continued.

The union later filed an appeal of the county court’s decision, which is still pending. However, under the new contract, the VTA and the ATU agreed to drop their respective legal actions.

Prior to the court ruling, the union had rejected the agency’s previous offer on March 24, which proposed 11% raises spread over three years. The newly approved contract adds a fourth year but no additional increase in pay over each year of the deal, compared to the prior offer.

Sergio Lopez, the VTA’s board chair and the mayor of Campbell, acknowledged Wednesday that the drawn-out labor dispute and negotiations showed there is still work to be done on employee relations.

“I think it unearthed underlying tensions that came out through this process, and in my perspective, that added to some of the challenges in getting to resolution in the time that we would have hoped,” Lopez said.

Lopez noted there are complex issues from past grievances that won’t all be solved by one contract deal.

He said the agency is working to address the tensions on multiple fronts, including through a Culture and Climate Change Committee that will include board members, VTA management and union leadership collaborating to solve workplace issues.

VTA officials have emphasized throughout negotiations that the agency is contending with financial difficulties that don’t allow for higher increases, and characterized the current deal as competitive and fair, maintaining workers as the second-highest paid transit employees in the region.

VTA spokesperson Stacey Hendler Ross said Monday that the agency is dealing with a roughly $800,000 deficit in the coming year but could be facing a deficit as high as $14 million in the 2027 budget year, with sales tax revenue projections lagging.

In the new contract, the agency and union also agreed that VTA wouldn’t seek punishments or charges against the union members for their strike actions, which the prior contract offer didn’t include.

Singh, in his letter to members, also thanked them for their “perseverance” and their patience through the lengthy labor dispute.

“As we move forward, our hope is that the VTA and the Board of Directors appreciate our commitment, dedication and the value we all have brought and continue to bring to this Agency,” he wrote. “We are the backbone of this organization, we demand and deserve respect!”