SEPTA’s board approves 2-year contract with transit agency’s largest union
The majority of the union voted in favor of the deal.
SEPTA’s board on Thursday approved a new contract with the transit agency’s largest union, Transport Workers Union Local 234, and a second smaller union representing vehicle operators in the suburbs of Philadelphia.
Members of TWU Local 234 voted Wednesday night to approve a two-year contract that will deliver a 3.5% pay raise, bolster the union’s pension funds, and expand health benefits for new employees.
SMART Local 1594, which represents approximately 350 operators, reached a deal with the transit agency earlier this month.
“These contracts are fair to our hardworking frontline employees and fiscally responsible to our riders and the taxpayers who fund SEPTA,” said SEPTA General Manager Scott A. Sauer.
For TWU Local 234, the two-year contract disrupts a pattern of three consecutive one-year contracts. TWU president Will Vera said that with the FIFA World Cup, MLB All-Star Game, and America’s 250th birthday coming to Philadelphia in 2026, both parties agreed to a two-year contract so as not to interrupt service during these global events.
The union represents 5,000 operators, mechanics, cashiers, maintenance people, and custodians who work on SEPTA’s buses, subways, and trolleys. Before this latest deal, TWU members were working without a contract since Nov. 7, and members voted unanimously on Nov. 16 to authorize leaders to call a strike if contract negotiations didn’t go as planned.
However, Vera said that this contract is a major win, especially for attracting new hires. Before this, new employees could not begin receiving dental and vision care until they completed 15 months on the job. The new contract shrinks that time down to 90 days.
“I really got tired of explaining to the new hires for 15 months that they just have to clean their teeth,” Vera said. “I wanted this to be a retention contract, to not only keep people here, but to make this an attractive place to come work for SEPTA.”
Philly’s transit unions don’t hesitate to strike if needs aren’t met. SEPTA unions have struck 12 times since 1975, earning SEPTA the title of one of the most strike-prone agencies in the country. Its last strike was a six-day effort in 2016 that ended one day before the presidential election.
The negotiations come on the heels of SEPTA’s worst financial period in its history, the agency said. SEPTA isn’t alone, though. Transit agencies throughout the country are in funding crises as inflation rises, federal funding shrinks, and state subsidies fail to increase each year.
Sauer, SEPTA’s general manager, added: “I am grateful to Governor [Josh] Shapiro and his team for their efforts to help us resolve differences and reach an agreement. Securing two-year contracts provides important stability as we approach the major events coming to Philadelphia in 2026.”