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Bay Area Rapid Transit's (BART) agreements with all five of its labor unions expire on June 30. But instead of moving forward, contract negotiations appear to be taking a step back.

Yesterday, the agency announced that two of the unions have "abandoned" an offer to freeze employee wages and now are seeking a 3 percent raise during the next two years. Presented by the Amalgamated Transit Union and Services Employee International Union, the wage proposal calls for a half-percent increase on Jan. 1, 2010; another half-percent increase on July 1, 2010; and a 2 percent salary hike effective Jan. 1, 2011. The increases for those two unions alone would cost at least $17.5 million over four years, according to BART.

The unions could launch a strike on July 1 if agreements are not reached by the June 30 deadline.

The agency recently announced its worst sales tax revenue drop in its 37-year history — 20 percent in FY2009's fourth quarter vs. the same FY2008 period — and that ridership declined 10 percent during June's first half. Meanwhile, BART is working to eliminate a $250 million, four-year budget deficit.

For FY2010, BART plans to raise fares and parking fees. The agency also has proposed that both union and non-union employees cover more of the cost of their benefits and pensions.