Budget Watchdogs Warn MTA's Deal with Labor is too Costly, May Bring More Fare Hikes

A budget watchdog group warns the MTA's labor deal with the Transport Workers Union could come at a cost to straphangers.

Early Monday, the union and the agency reached a tentative deal including wage increases for more than 35,000 bus and subway workers.

But the Citizens Budget Commission says the agreement is more generous to the employees than the MTA can afford, which could mean fare hikes higher than the ones projected.

The agency's chairman and CEO disagreed, saying the budget could accommodate the new deal.

It still needs approval from union members and the MTA board.