METRO Magazine Logo
MenuMENU
SearchSEARCH

Contract Negotiations Threatened Loss Of Funding For MBTA

The Massachusetts Bay Transportation Authority (MBTA) was recently forced to extend its maintenance contract with Amtrak or give up crucial federal funding.

June 30, 2000
2 min to read


The Massachusetts Bay Transportation Authority (MBTA) was recently forced to extend its maintenance contract with Amtrak or give up crucial federal funding. The transportation authority originally awarded the contract to Bay State Transit Services Inc., which underbid Amtrak by $116 million for five years of service. Bay State sought to hire entirely from within the Transport Workers Union but was unsuccessful in recruiting personnel, said Michael Mulhern, deputy general manager of the MBTA. "The employees union and Bay State were never able to agree on how they were going to conduct business," Mulhern said. Also involved in the process was the U.S. Department of Labor (DOL), which invoked 13(c) to prevent Bay State from trimming the maintenance workforce, an integral part of the company's bid. What Mulhern characterized as "a very expansive view of federal labor protection laws" was backed by the threat of withdrawal of $200 million of federal funds annually that support MBTA's capital program. Mulhern said the contract that the DOL and the union sought would have constituted "a change in letterhead," but no change in business practices. MBTA's contract with Bay State was further complicated by the prospect of a service interruption before the situation could be resolved. "Amtrak gave every indication that they would not maintain service on July 1 without a new contract," Mulhern said. The case attracted the attention of Senator Phil Gramm (R-Texas), chairman of the Senate Banking Committee, who requested review of any contract that the MBTA might sign with Amtrak. Christi Harlan, communications director for the committee, said Gramm "hoped to bring it to the MBTA's attention that it would be in the best interest of commuters and taxpayers all across the country if they followed true competitive bidding practices and went with the lowest cost, highest quality bidder." Despite the MBTA's position that it was legally justified in pursuing its contract with Bay State, it chose to extend its relationship with Amtrak rather than risk an interruption in service or the loss of federal funding. That decision resulted in a lawsuit by Bay State over the obligations of the transportation authority to the company. The MBTA is very disappointed with the outcome, said Mulhern. "The amount of pressure that was brought to bear on the commonwealth was absolutely tremendous," he said.

Topics:Management

More Management

An A line MTA subway car near the soon to be replaced signaling system.
Rail•by Staff and News Reports•October 23, 2026

New York MTA Launches Historic $1.9B Signal, Track Modernization Project

Funded in part by congestion pricing revenue, the project will replace nearly century-old signals along the A and C lines in Brooklyn and Queens.

Read More →
Turning Transportation Challenges into Opportunities
Management•by Alex Roman•October 22, 2026

Brian Dickson on Building Stronger, More Resilient Transportation Organizations

Bus Business Consultants Founder Brian Dickson discusses the leadership principles, operational discipline, and strategic planning that separate transportation companies positioned for long-term success from those stuck in survival mode.

Read More →
Groundbreaking ceremony for LA Metro's Vermont Transit Corridor BRT
Bus•by Staff and News Reports•October 22, 2026

LA Metro Breaks Ground on Vermont BRT Project

The 12.4-mile corridor is projected to serve 66,200 daily riders, reduce travel times by up to 24%, and create the nation's busiest bus rapid transit corridor.

Read More →
Ad Loading...
Management•October 21, 2026

Building Stronger Leaders, More Resilient Transit Teams

Dr. Carol Parker Walsh discusses leadership development, employee retention, workplace culture, and preparing transit’s workforce for AI and automation.

Read More →
ABC Companies President and CEO Roman Cornell
Bus•October 21, 2026

Roman Cornell on ABC Companies’ Evolution and the Future of Passenger Transportation

The company’s CEO discusses carrying forward a third-generation family legacy, ABC’s continued evolution in passenger transportation, support for increasingly complex fleets, and how technology and continued investment could help operators improve uptime.

Read More →
METRO Magazine graphic with a dark blue geometric background and the headline “CATS Launches West Charlotte Microtransit Zone, Expands Services” in bold white lettering.
Management•by Staff and News Reports•October 19, 2026

CATS Launches West Charlotte Microtransit Zone, Expands Transit Services

The new microtransit zone connects residents to key destinations as Charlotte Area Transit System rolls out the first phase of its 2055 Transit System Plan.

Read More →
Ad Loading...
VIA Primo BRT bus riders
Bus•by Alex Roman•October 19, 2026

VIA Bus Ridership Grows 10.1% Through August 2026

San Antonio's VIA Metropolitan Transit reported the highest bus ridership growth among major Texas transit systems. Federal Transit Administration data ranked it second among the nation's 50 largest transit systems.

Read More →
New Standard Helps Transit Agencies Address Climate Risks
Security and Safety•by Alex Roman•October 19, 2026

CSA Group Releases Climate Resilience Standard for Transit, Passenger Rail

Developed with support from the Standards Council of Canada, CSA D700 guides assessing climate-related risks and planning adaptation measures for transit and passenger rail systems.

Read More →
Unifying Transit Data With AI Tools with ETA's John Maglio
Technology•by Alex Roman•October 19, 2026

ETA CEO John Maglio on Transit Technology, Innovation, and Building Agency Trust

ETA founder and CEO John Maglio explores the evolution of transit technology, the importance of reliable systems, and how stronger partnerships can help agencies improve operations and the passenger experience.

Read More →
Ad Loading...
METRO Magazine graphic showing passengers boarding a COTA bus at a downtown bus stop, with the headline “COTA Launches First Customer Experience Action Plan.”
Management•by Staff and News Reports•October 16, 2026

COTA Launches First Customer Experience Action Plan to Improve Transit Service

The new plan outlines improvements to service reliability, accessibility, communication, and the overall rider experience across Central Ohio's transit system.

Read More →