VTA has a new proposal for its frontline workers months after a historic strike halted public transit across Santa Clara County.
Members of Amalgamated Transit Union Local 265, which represents more than 1,500 frontline VTA workers, will vote on a new contract offer Tuesday, ending the months-long labor dispute. The offer mirrors similar proposals approved earlier this year by VTA’s three other unions and includes a 14.5% raise over four years, improved dental benefits and updated workplace policies. The contract needs more than 50% approval to pass, and the union will announce results Wednesday.
The contract could take effect as soon as June 9, if ATU members pass it and the VTA board of directors approves it Thursday.
ATU Local 265 has been negotiating its contract with VTA since August 2024. Workers went on strike from March 10 to March 27, stopping bus and light rail services countywide. A county judge demanded striking union members return to work and approved the transit agency’s breach of contract lawsuit.
ATU Local 265 President Raj Singh said VTA representatives have agreed to drop the agency’s lawsuit against the union if the contract is approved and the union drops its appeal. Thursday’s board meeting is the last one scheduled until August, which Singh said would mark a full year of negotiations.
“Putting all that into consideration, the union leadership feels that it’s important to let our members have the ultimate say if they want to take this deal, because it’s significantly different,” Singh told San José Spotlight.
Singh said over the past three months, ATU has only met with VTA’s negotiations team six times — and two of those meetings lasted less than an hour. He said union members are frustrated by the public transit agency’s lack of urgency in resolving the dispute, pointing to how the agency negotiated three other union contracts while ATU Local 265 was on strike.
He expects members to be split on the vote.
“The agency is … saying that they’re attempting to change the culture and make sure workers feel valued at work,” Singh said. “The actions don’t match the words that are being said by the board or the executives.”
A statement from VTA said the proposal reflects a mutual understanding of the transit agency’s tight budget position. VTA is looking at a $868,000 budget deficit in 2026 that’s expected to balloon to $14.9 million in 2027. The deficit is mostly attributed to financial volatility, federal economic uncertainty and a slowdown in VTA’s sales tax revenues.
“VTA’s proposal to ATU also directly addresses the agency’s budgetary constraints, as its primary source of funding — sales tax revenue — is currently on the decline,” the statement reads. “VTA remains focused on protecting current service levels and readying the agency for future growth once sales tax levels return.”
Original story published June 2 at 5:XX p.m.
Contact B. Sakura Cannestra at [email protected] or @SakuCannestra on X.
