Local News

T board delays union back pay

Posted: 09/12/08 at 5:26 am

BOSTON -- The MBTA's board of directors has voted to delay paying $43 million in back wages to its labor unions to give more time to figure out a way to come up with the money.

Board members on Thursday tabled a motion that would have funded the payments and said they would reconvene within a month to make good on a legally binding arbitrated settlement with the Boston Carmen's Union Local 589, the agency's largest union.

The Massachusetts Bay Transportation Authority is burdened by an $8 billion debt, and board members say they want to avoid using borrowed money to pay wages.

Transportation Secretary Bernard Cohen, who chairs the T board, asked for up to a month to look for another source of money for the back pay, while acknowledging that there are few short-term options.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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