DiNapoli: State could lose $50 million a day if LIRR strikes
There are 50 million reasons to prevent a Long Island Rail Road strike, a state official says.
State Comptroller Thomas DiNapoli estimated a strike shutting down the nation's busiest commuter railroad could cost up to $50 million a day in lost economic activity.
An 'LIRR strike would cause headaches and financial hardships for riders and businesses,' DiNapoli said in a statement. 'It would also be another devastating blow to a region that is still struggling to recover from Superstorm Sandy and the recession.'
Eight unions representing railroad workers who have been without a contract since 2010 have threatened to strike as soon as Sunday. Negotiations collapsed Monday morning with MTA management and union officials blaming each other for not compromising enough.
Two mediation boards appointed by the federal government have recommended modest annual raised averaging less than 3% a year over six years. Workers for the first time would have to contribute to healthcare with paycheck deductions of 1% rising to 2.25% by the last year of the pact.
The unions accept the recommendations but the MTA has said it needs more savings to offset the increased labor costs.
'A strike by these LIRR unions would be devastating, and while we haven't estimated the cost for everyone who would pay for the unions' refusal to compromise, we hope the unions heed this message that they ought to modify their unreasonable demands instead of continuing to threaten a nightmare for everyone on Long Island,' MTA spokesman Adam Lisberg said.
But Anthony Simon, a spokesman for the union coalition, said the MTA would be at fault if the trains are halted this weekend in the first LIRR strike since 1994. He called the DiNapoli release 'a strong statement of how catastrophic this strike could be. The MTA has been wrong on all accounts and are playing a dangerous game with serious consequences.'
The typical worker in the unions has a base pay of approximately $65,000 a year, the MTA has said. They each earn about $20,000 more a year by working overtime.
The unions represent approximately 5,400 conductors, track workers, machinist, electricians and other railroad employees.
'Both sides must go the extra mile to reach a reasonable settlement so we can avoid the costly impact of a strike and the millions of dollars in lost economic activity,' DiNapoli said.
The controller's economic projection was based on LIRR ridership information, and U.S. census and economic data, he said.
More than 300,000 riders use the railroad a day for work and other activities, such as shopping, DiNapoli said. A summer strike would particular hurt business that target summer tourists, he said.
Any negative impact on tourism also affects sales tax receipts, an important revenue source for local governments, DiNapoli said.
pdonohue@nydailynews.com
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