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Judge Imposes $1 Million Per Day Fine On Striking Transit Union

First Transit Strike In 25 Years Cripples New York City
Eyewitness News (New York- WABC, December 20, 2005) -

A judge has imposed a $1 million-a-day fine against the TWU for striking.

Late this afternoon, State Supreme Court Justice Theodore Jones found TWU Local 100 guilty of contempt of court for choosing to strike in spite of the state's Taylor Law prohibiting a walkout by public employees.

Jones announced that the TWU will be slapped with a $1 million a day fine, starting today. The judge called it "a very, very sad day in the history of labor relations in the city. It is a very bad breakdown in labor relations."

Union president Roger Toussaint declared the city's first transit strike in a quarter century at 3:00 a.m., after the union rejected the latest offer from the MTA. Earlier today, infighting between two transit workers unions flared during a Downtown Brooklyn court hearing, when the parent union said it should not be held responsible for this morning's debilitating strike.

Lawyers for the Transport Workers Union of America, TWU Local 100's parent union, told a Brooklyn judge that they are not fiscally liable for the strike because they do not support it and recommended against it.

Michael O'Brien, the president of the parent union, had warned TWU Local 100 President Roger Toussaint that he could not support a strike because he believed the MTA's offer last night represented real progress.

The state attorney general's office appeared to agree with the parent union as State Supreme Court Justice Theodore Jones heard from the MTA and union lawyers during a contempt hearing. As the lawyers tried to make their case in court, O'Brien met with his union board in Midtown to plot a way out of having to pay debilitating fines.

In court, Judge Jones rejected TWU Local 100 requests to delay the contempt hearing and their request for a jury trial. Digging in for a prolonged trial, the TWU Local 100 began calling witnesses to prove a pattern of the MTA negotiating in bad faith.

The 33,000 members of Transport Workers Union Local 100 deserve a "very potent fine" for their 3:00 a.m. walkout, said James Henly of the state attorney general's office, representing the MTA. Henly cited the "economic and social cost" of the strike. City officials estimate the walkout will remove $400 million a day from city coffers.

But TWU attorney Arthur Schwartz accused the MTA of provoking the strike - a charge that Gov. Pataki disputed. Citing the steep fines that could be incurred under the Taylor Law, Pataki this afternoon again called on the striking workers to return to their jobs. "All I can say is go back to work, come back to the table," Pataki said.

This morning Mayor Bloomberg put into effect a sweeping emergency plan to reduce gridlock and keep certain streets open for emergency vehicles. Bloomberg was among the throngs of people crossing the Brooklyn Bridge as he walked to City Hall, cheering on the seven million daily mass transit riders now trying to get to their jobs by car pool, bicycle, roller skates and on foot.

In the meantime Newscopter 7 was over the more than 8,200 MTA rail and subway cars now sitting idle. At noontime, traffic was still snarled in gridlock - not a good sign for the evening rush.

Dave Evans is in Downtown Brooklyn With the latest.

A hearing was set to begin at noontime behind closed doors with about 12 lawyers meeting with Judge Theodore Jones. They really can't move forward with negotiations between the union and the MTA until the contempt of court hearing is resolved. We hope that will be for today.
One official told us that it might not last this long but the courtroom has been reserved for the next two days.

Lawyers for both the city, the union and the MTA arrived at state supreme court for a hearing that was supposed to start at 11:00 a.m. Earlier Judge Theodore Jones issued a TRO or temporary restraining order against striking union members, ordering them to get back to work but instead they are picketing across the city, including just outside the court house. They now face the possibility of being fined two days pay for every day on strike.

John Mooney, TWU VP: "We're here to say the union's got the power and we're here to say that we're gunna stand up for our rights. We're not here to be intimidated by these laws that suppress free speech and suppress workers rights so that they can obtain a fair wage. The union's got the power."

Josephine Shepard, Union Member: "We've have to do what we have to do. It's really about respect."

Dave Evans: "Can you afford this though?"

Josephine Shepard: "Of course not, but we have to do what we have to do. It'll work itself out."

In 1980 they went out for a total of 11 days and they were socked with multimillion dollar fines. Earlier former Mayor Ed Koch, who was mayor in 1980, said that obviously these workers did not learn their lesson from 1980 and he said this is a major crisis for the city.

Mayor Bloomberg, Governor Pataki and MTA Chairman Peter Kalikow all say they now want to see these union members punished as much as possible.

Peter Kalikow, MTA Chairman: "I guarantee the public that we will take every necessary step to being this illegal action to an end as quickly as possible."

Eyewitness News' reporter Sarah Wallace is at union headquarters with the latest there.

The scene here is as cold as the weather. There is no sign of any union officials, in fact we are not being allowed inside the building at all. The last sign of Roger Toussaint was at 3:00 a.m. this morning when he called the strike.

The decision to strike by the union executive board was 24 for the strike, 10 against and 5 abstentions. The strike was also against the decision of the parent union of the TWU, which had recommended that they not go on strike.

The latest word from the city comptroller's office is that if this strike goes on for a week, it will cost the city $1.6 billion.
(2005 Copyright WABC)