METRO Magazine Logo
MenuMENU
SearchSEARCH

N.Y. transit strike said to cost city $1 billion

33,000 workers walked off the job at the height of the holiday season.

January 1, 2006
2 min to read


The pre-Christmas transit strike that crippled transportation in New York City for nearly three days took an unhealthy toll on the local economy during the holiday season’s busiest days. Mayor Michael Bloomberg estimated the city’s lost revenue at $1 billion, about $400 million per day, although others said it might have been far less. The city’s third-ever transit strike ended on Dec. 22, a little less than 60 hours after it was called by the Transport Workers Union Local 100 against the Metropolitan Transportation Authority (MTA). Union officials voted to send 33,000 members back to work after being threatened with fines and criminal charges. They also had incurred the wrath of millions of commuters and holiday shoppers. Bloomberg said the strike was especially tough on the city’s retailers, restaurants, museums and cultural institutions. In addition, he said, the city spent $10 million a day on police overtime and strike-related costs. With the strike occurring during the height of the Christmas shopping season, millions more were lost in sales tax revenue. After the strike was called at 3 a.m. on Dec. 20, the city implemented a contingency plan that required carpooling and imposed travel restrictions. At press time, contract talks between the union and the MTA were continuing under a media blackout. Disagreements over the MTA’s three-year contract proposal’s retirement benefits and wage increases were the cause of the walkout, which effectively ended all service on the subway and buses in the city. An estimated 7 million people use the trains and buses daily. In its last offer on Dec. 19, the MTA had proposed wage increases of 3%, 4% and 3.5% over the next three years, but had withdrawn a proposal to raise the retirement age for full-pension eligibility to 62 from the current 55. Another central conflict in the talks was the MTA’s proposal to raise the pension contribution to 6% of earnings for new workers, from the current rate of 2%.

Topics:Management
Subscribe to Our Newsletter

More Management

Mark Aesch nominated as next FTA Administrator
Management•by Alex Roman•November 12, 2026

Mark Aesch Nominated to Lead Federal Transit Administration

The former Rochester transit chief and TransPro founder, who has also contributed to METRO Magazine, brings decades of industry experience and a focus on performance, accountability, and financial sustainability to the nomination.

Read More →
Two pedestrians wait at a crosswalk on a wet city street as a public transit bus approaches an intersection, with cars and other pedestrians in the background.
Management•by Elora Haynes•November 12, 2026

Best and Worst U.S. Cities for Public Transportation in 2026

A new analysis of 50 major U.S. urban areas ranks public transit systems based on accessibility, affordability, usefulness, and safety, highlighting where transit performs best and where challenges remain.

Read More →
A Laketran vehicle at a propane fueling station
Paratransit•November 11, 2026

Laketran Cuts Fuel Costs, Boosts Efficiency with Propane-Powered Fleet

The Ohio transit agency is using propane-powered vehicles and on-site fueling infrastructure to cut fuel and maintenance costs while meeting growing demand for paratransit services.

Read More →
Ad Loading...
Rail maintenance workers wearing orange high-visibility coveralls and hard hats work on railroad tracks at night, using tools and equipment under bright work lights, with a yellow maintenance vehicle in the background.
Management•by Staff and News Reports•November 11, 2026

Canada’s Public Transit Supports $65.6 Billion in Annual GDP

New research from the Canadian Chamber of Commerce examines transit's economic contributions, including job creation and the financial implications of transportation investment.

Read More →
Pierce Transit Prepares for Major Fleet, Service Expansion
Bus•by Alex Roman•November 10, 2026

Pierce Transit Moves to Expand Fleet Following Proposition 1 Approval

The agency authorized the purchase or refurbishment of up to 60 buses to support a 47% service expansion, as voters nationwide approved billions in new transit funding.

Read More →
An NGtransit vehicle operating in the snow
New Mobility•November 9, 2026

Right-Sizing Rural Transit: Lessons from North Grenville’s On-Demand Model

A small municipality shows how flexible service, rider needs, and public accountability can expand mobility with limited resources.

Read More →
Ad Loading...
Several King County Metro buses, including electric trolleybuses, line a downtown Seattle street beneath overhead power lines, with city buildings and traffic in the background.
Management•by Elora Haynes•November 9, 2026

Transit Ballot Victories Signal Strong Voter Support: What Comes Next?

Voters approved billions in public transportation investments in 2026, giving agencies opportunities to preserve service, expand operations, and strengthen regional connections amid a changing political landscape.

Read More →
Transit Reaches 200 Agency Partnerships, Expands Rider Experience Tools
Technology•by Alex Roman•November 6, 2026

Transit Expands Agency Partnerships, Reaching 200 Official App Partners

COO Jake Sion discusses Transit’s growth, the success of its Transit Royale program, and how technology is helping agencies improve the rider experience.

Read More →
Evertt Mayor Cassie Franklin signs the Interlocal Agreement to consolidate transit service with Community Transit CEO Ric Ilgenfritz looking on.
Management•by Alex Roman•November 6, 2026

Everett Transit, Community Transit Approve Consolidation of Services

The agreement will bring Everett Transit into Community Transit’s network in April 2027, with plans to increase bus service by 50% by 2031 and expand regional connections.

Read More →
Ad Loading...
NITA Proposes $9.73B Capital Plan, $5.04B Operating Budget
Management•by Alex Roman•November 3, 2026

NITA Proposes $5B Operating Budget, $9.7B Capital Program for 2027

The proposed budget includes funding for expanded transit service, safety initiatives, fleet upgrades, and infrastructure improvements across CTA, Metra, and Pace.

Read More →