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The Sacramento Regional Transit District (SacRT) and Amalgamated Transit Union (ATU) Local 256 have received an interest arbitration award for a new contract that would cut the district's labor costs by nearly $5 million over 3.5 years.

The award, which covers a contract period from Sept. 1, 2009, through Feb. 28, 2013, calls for wage freezes; suspension of pay for 16 holidays; six required unpaid furlough days; suspension of the annual sell-back of accrued time off; enrolling in the CalPERS medical insurance system; increasing employee contributions toward health insurance to from 8 percent to 10 percent; and suspending or eliminating certain SacRT contributions to the ATU-operated Retiree Medical Trust.

The cost-cutting measures are similar to those already implemented for other employee groups, including management, supervisory and administrative staff, SacRT officials said in a prepared statement.

ATU Local 256 represents 458 SacRT employees, nearly half of the agency's workforce, including light-rail operators, transit officers and clerical staff. A previous contract between the parties expired on Aug. 31, 2009.

"The award accomplishes the district's goal of a net zero cost increase and provides budgeting stability for the next two years," said Mike Wiley, SacRT general manager and chief executive officer.