One-time payment a hurdle in LIRR strike talks, but MTA says $134M deal close

The Metropolitan Transportation Authority's lead negotiator said Wednesday a deal to avoid a commute-crippling Long Island Rail Road strike was within reach, as the transit agency put a $134 million offer on the table that would pay workers "all of the money that was requested," and that the unions have budged from their previous demands.

The MTA, however, is relying on a lump-sum payment to meet some of the unions' demands. A union source, speaking on the condition of anonymity to discuss sensitive negotiations, said the unions would not accept a deal made up of a one-time payment.

Progress in the talks, acknowledged by both the MTA and the unions representing about half of the LIRR’s 7,000-member organized labor force, came as Gov. Kathy Hochul urged both sides to "find a middle ground" to avoid disrupting the commutes of 270,000 daily railroad riders. A strike could begin as early as 12:01 a.m. Saturday if no deal is reached.

Following a Manhattan bargaining session, MTA chief negotiator Gary Dellaverson offered new details of management’s latest offer at a news conference at the authority's headquarters. He said the compensation package worth — $133,788,000 — is "the exact same amount" as a proposal recommended by White House mediators.

That recommended settlement would have paid workers 4.5% raises in the fourth year of their contract. The unions have demanded 5%, but Dellaverson said the unions, for the first time in recent negotiations, "actually made a move" at Wednesday’s bargaining session.

"All of the money that was requested is now on the table," Dellaverson said. "I believe firmly that a deal is present. It’s available. It’s doable. And we should reach it tomorrow."

A spokesman for the five LIRR unions confirmed that they offered a new proposal Wednesday. Neither the unions nor the MTA provided information on what was in that offer.

The unions, in a statement issued before Wednesday’s negotiations, acknowledged that "there has been some positive movement toward a settlement."

Kevin Sexton, national vice president of the Brotherhood of Locomotive Engineers and Trainmen and a spokesman for the five unions, said while the MTA "is backing off from some of their games and gimmicks, to say that we’re close is far-fetched."

Hochul: MTA negotiators 'need a partner'

Hochul on Wednesday appeared to back off her earlier vow to have the railroad unions "get the deal that is going to prevent a strike," saying instead that she won't support an agreement that will financially burden Long Islanders. Hochul, speaking at a Jones Beach news conference, said she believes "workers deserve to be paid fairly for their work," but added that the MTA, a state public authority, "must be responsible with public funds."

"Both sides must continue to negotiate in good faith toward a deal at the table. Now, I've directed the MTA to do just that, to negotiate in good faith, and they are," Hochul said. "But they need a partner."

Dellaverson said the MTA’s latest offer, which has been revised several times in the last week, would be the same financial outlay in the fourth year of workers’ contracts as mediators recommended. But because it would consist of lump-sum payments, rather than wage increases, it would be more affordable for the MTA in the long run, and not a precedent for negotiations with other, larger transit unions, he said.

Pickets, T-shirts passed out

As Saturday’s strike deadline drew nearer, union officials handed out picket signs and T-shirts to workers in Patchogue on Wednesday afternoon.

The three-year-long labor dispute has centered around the size of raises for workers in five unions representing employees including LIRR locomotive engineers, signal inspectors, electricians, machinists and ticket clerks.

The unions rejected the same deal already accepted by most other MTA unions, including some at the LIRR. That three-year agreement gave workers raises of 3% in each of the first two years, and 3.5% in the third year. That pay will be retroactive, since the first year of the contract dates to 2023.

Arguing that the raises don’t keep up with the high cost of living increases in recent years, nor with raises handed out to workers at other major railroads, the unions have demanded a fourth year at 5%.

MTA negotiators had offered 3% in a fourth year, or as high as 4.5%, if unions agree to productivity increases and work rule concessions. With unions refusing the givebacks, MTA sources told Newsday on Tuesday that they are no longer a focus of negotiations. Hochul on Wednesday said with work rule concessions seemingly off the table, a settlement will "more likely come down to the percent increase" of raises for workers.

MTA leaders have said the members of the five unions are already the highest-paid railroad workers in the nation, earning a median annual income of about $133,000.

Because other MTA unions — including that representing 42,000 city bus and subway MTA workers — would expect the same terms, MTA managers have said paying the LIRR workers raises beyond what they’ve budgeted for could mean doubling the size of their next planned fare hike — to 8% — cutting service, raising taxes or laying off workers.

The unions have called those threats "fearmongering," and noted that the MTA closed out 2025 with a $765 million operating budget surplus, and has seen a windfall of new revenue from congestion pricing tolls and state casino fees.

"There is a path forward, but it's also one that must make sense for taxpayers and commuters," Hochul said Wednesday. "I'm not looking to raise fares on or raise taxes, so we have to find a common sense solution here, and I do believe that it requires both sides to move from where they are, and find a middle ground."

In the event of a strike, the MTA is encouraging commuters to work from home if possible. Those who can’t will have to drive to work or rely on limited public transportation options, including shuttle buses running between six locations on Long Island and two subway stations in Queens.

Newsday's John Asbury and Matthew Chayes contributed to this story.

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.