Metro

New labor deal will cost MTA $1.5B over 4 years

The MTA expects new labor agreements to cost the authority more than $1.5 billion between 2014 and 2018, officials said Monday.

Fare hikes will stay at 4 percent in 2015 and 2017, as announced December, despite the labor agreements.

The estimate projects a deal for Metro-North Railroad workers that is comparable to the recent LIRR agreement, and deals for transit unions that is similar to the Transport Workers Local Union agreement signed earlier this year.

The new labor costs will hit the MTA with $478 million in 2014, because of retroactive raises, and $260 million a year between 2015 and 2018.

About $80 million a year will be taken from the MTA’s budget for capital projects, which includes big-ticket items like the Second Avenue subway and maintenance of the transit system.

Other money will come from what the MTA had put aside for retiree benefits.

The MTA’s budget for next year includes spending on Vision Zero, Mayor DeBlasio’s plan to end traffic deaths, to reduce bus crashes.

It also includes dollars for more aggressive inspection of subway tracks.

New service will be added on the LIRR, including new trips to Montauk and on the Oyster Bay branch.