Labor negotiations between the Santa Barbara Metropolitan Transit District and Teamsters Local 186 continue this month after two employee groups rejected a contract offer.

The Teamsters announced on Aug. 4 that the employees at the MTD rejected the contract offered to bus drivers and supervisors in a vote. The maintenance unit voted to ratify its contract.

Teamsters Local 186 represents the three units at the MTD, and each unit has a unique contract that it votes to ratify or reject.

The last contract offer was rejected by employees due to disagreements over pay increases for the next three years. According to Jed Johnson, a negotiator for the Teamsters, the MTD is offering a 9% increase over the next three years. The union is pushing for an 18% increase over the same period.

“The wages are not there, (or) pension (and) healthcare. The percentages are not there to the member’s liking,” Johnson said.

Hillary Blackerby, a MTD spokesperson, declined to confirm the negotiation numbers. However, she confirmed that the maintenance unit agreed to an 11.25% pay raise over the next three years.

Other bargaining issues include the policy on overtime and the need for doctors’ notes for employees who call in sick. Johnson says the need to provide a doctor’s note is another hurdle for employees who are sick and have to spend a day in a doctor’s office.

He added that 75% of MTD employees live outside of Santa Barbara in neighboring counties.  

MTD and the Teamsters are now back at the bargaining table to put together new contract proposals for the remaining two units. The original contract for MTD workers was set to expire at the end of June, but the two sides agreed to an extension.

The current extension will last into September, when the MTD Board returns from its summer recess.

Johnson also criticized Jerry Estrada, the MTD’s general manager, for not being at the most recent negotiations. Blackerby said that even though he was not present, he is “very engaged in the process” and trusts the MTD negotiation team.

State mediators were called in for the last round of negotiations, which began after MTD employees rejected a previous contract offer. If a deal is not reached by the September deadline, employees may go on strike.

MTD Increases Bus Fares

The ongoing contract news comes as the MTD raises its bus fares for the first time in 16 years. The new regular one-way fare is $2.50 for adults as of Monday.

Seniors will now pay $1.25 per ride, and the age eligibility for seniors is now 65, which the MTD says will bring the bus service in line with other transit agencies and government standards.

The MTD said the fare increase is due to rising operating costs, which it says have increased by 10% since 2019. Bus fare makes up about 20% of the MTD’s annual budget.

The bus service’s annual budget is primarily made up of fare revenue, sales tax, and assistance from the Federal Transit Administration (FTA).

The FTA recently pulled $3 million in funding after it reclassified Santa Barbara as a large urbanized area, after the 2020 census showed that the local population had grown. The MTA previously qualified for the FTA’s program, Small Transit Intensive Cities.

“That’s one of the big things that pushed us to the fare increase,” Blackerby said.