Business groups call LIRR union raise requests 'economically unsustainable'

Long Island business leaders on Thursday expressed concern of the potential economic impacts from an LIRR union strike, while also warning that unprecedented raises for railroad workers could be "unsustainable."

Leaders from seven Long Island business advocacy and economic development groups, in a letter to Gov. Kathy Hochul, expressed their "deep concern regarding the negative economic impact of a potential strike" by five Long Island Rail Road unions.

The leaders noted that the strike, which could begin May 16, would come a week before Memorial Day and potentially "exacerbate the economic impact as Long Island enters its peak tourism season."

"The railroad takes tens of thousands of New Yorkers each week to Long Island beaches, golf courses, and wineries," they wrote. "Thousands of small businesses rely on summer tourism to survive."

The business groups also expressed concern that "unprecedented raises to the minority of the LIRR workforce will be economically unsustainable for a mass transit system with chronic fiscal woes."

The Metropolitan Transportation Authority on Wednesday warned that giving workers the raises they're demanding could lead to service cuts, job reductions or fare hikes as high as 8%. Unions disputed that assertion.

Kevin Sexton, national vice president of Brotherhood of Locomotive Engineers and Trainmen and a spokesman for the coalition of five unions, said in a statement that a strike would be "very costly to area businesses," as the letters’ authors acknowledged.

"We agree with them that the best answer is to settle this contract right now," Sexton wrote.

Hochul spokesman Sean Butler said the governor's position is that "a strike would hurt LIRR workers and riders alike. It is critical that both sides come to the table and negotiate in good faith."

The letter was authored by representatives from the Association for a Better Long Island, the Long Island Association, the Hauppauge Industrial Association of LI, the Long Island Builders Institute, the Long Island Contractors' Association, the Commercial Industrial Brokers Society of Long Island and Discover Long Island.

The labor organizations, which represent about half the LIRR’s union workforce, and the MTA are at odds over the size of raises in a four-year contract. The unions want 14.5% in wage increases. The MTA is offering up to 14%, but only in exchange for various concessions.

Asked to comment on the letter, MTA officials pointed to remarks made Wednesday by the agency's chief financial officer, Jai Patel. In the event of a strike, Patel said, "Riders will be frustrated, the local economy will struggle and trust in our service will erode."

By Alfonso A. Castillo

alfonso.castillo@newsday.com@alfonsoreports

Alfonso Castillo has been reporting for Newsday since 1999 and covering the transportation beat since 2008. He grew up in the Bronx and Queens and now lives in Valley Stream with his wife and two sons.