UPDATED: SEPTA, transit workers union reach tentative labor deal

Editor's note: This story has been updated with comments from Gov. Josh Shapiro, who today committed funding to address SEPTA's financial situation.

Transport Workers Union of America Local 234, working with TWU International, has secured a tentative one-year contract with the Southeastern Pennsylvania Transit Authority (SEPTA), averting a potential transit worker strike in Pennsylvania.

The contract calls for increases increases wages and safety measures in place for transit workers.

The tentative contract provides workers with a 5% raise, pension adjustments, and safety improvements; it is scheduled for a ratification vote on Dec. 6.

“This victory was possible because of the TWU International and Local 234’s steadfast pursuit of contract fairness for Philadelphia’s transit workers,” TWU International President John Samuelsen said in a press release issued by the union. However, as the deal reached only lasts for one year, a long-term solution has not been reached.

"We have to be able to come to long-term agreements with our unions for the good of the membership, for the good of the service, for the good of our customers," said SEPTA's Interim General Manager Scott Sauer at a press conference, as reported by local news station CBS Philadelphia. "Our customers don't want to go through this cycle every single year of 'will we go on strike, will we not go on strike, will we be funded, will we not be funded.'"

SEPTA is facing financial challenges, as federal COVID-19 relief funding is reaching its expiration. The agency has proposed major service cuts and fare increases if Pennsylvania's state government does not increase funding dedicated to SEPTA, the CBS news station reported. 

Harrisburg lawmakers did not approve a state funding plan proposed by Gov. Josh Shapiro; his proposal would have increased funding for state transportation, including SEPTA. In response, Philadelphia City Council members have called on Shapiro to flex federal highway funds to support the transit agency, the CBS station reported. 

This afternoon, Shapiro held a press conference about SEPTA's financial picture and posted the following statement on social media site Threads: "I've directed PennDOT to immediately begin the process of transferring $153 million in federal highway money to SEPTA. That funding will prevent service cuts, delay dramatic fare hikes until at least next July, and ensure the good people of southeastern Pennsylvania can rely on SEPTA to get to where they need to go."