Posted by Leonard Steinberg of URBAN COMPASS on July 16th, 2014

A Long Island Railroad strike is looming and at the core of the problem is a simple truth: commuters who use the LIRR cannot afford to pay more for the service in raised fares, there is a budget, and salaries cannot be raised in that budget if fares are not raised. The average salary of an LIRR employee is $ 87,182 per year including overtime pay.

The average monthly LIRR ticket costs $ 245.

Its that simple.

Yet, the union simply cannot accept this and insist they should earn more, even if those using their less-than-stellar service are not earning more. The negative economic impact on New York could be huge, not to mention the misery it would cause thousands of commuters who depend on this public service.

The MTA last month offered LIRR workers a 17% wage increase over 7 years….about 2.42% per year. The union was seeking 17% over 6 years….or 2.83% per year, a position that was backed by two federal mediation boards. The current inflation rate in the USA is 2.1%.

To help pay for the increase in labor costs, the transit system wants current LIRR employees to contribute 2% of their salary to health insurance; they currently make no payments. New workers would direct 4% to health care and, unlike current employees, would contribute to their pensions after 10 years.

This strike makes for a strong argument for living in the city and being able to walk to work.

Transportation systems around the world are held hostage frequently by their employees, so we are not alone: these demands make for a strong argument for automation and computers to replace unrealistic demands on those consumers who can least afford it. Think Detroit.