San Jose, Calif.’s Santa Clara Valley Transportation Authority (VTA) announced members of the Amalgamated Transit Union (ATU) Local 265 have ratified a new four-year labor contract, concluding a prolonged negotiation process that began in August 2024. 

The vote, held on June 3, marks a significant milestone for the agency, aligning all four of its labor unions under active agreements for the first time this year, VTA officials said.

VTA’s New Labor Agreement

The ratified agreement includes annual wage increases of 4%, 3.5%, 3%, and 4%, along with enhanced dental benefits and updated workplace policies. The contract will go before the VTA board for final approval during its upcoming meeting.

“I’m pleased that we’ve reached an agreement that stays within VTA’s financial limits while fairly recognizing the contributions of our employees,” said VTA GM/CEO Carolyn Gonot. “This contract ensures manageable labor costs over the next four years and provides our workforce with the compensation they deserve.”

ATU Local 265 represents approximately 1,500 VTA employees, including bus and light rail operators, mechanics, dispatchers, fare inspectors, and customer service staff. 

The agreement follows similar contracts with VTA’s three other unions in April, collectively signaling a new chapter of labor stability for the agency.

Background Leading to Agreement

The months-long bargaining process was marked by tension, culminating in a 17-day service disruption that significantly impacted transit riders across Santa Clara County. 

As METRO Magazine previously reported, negotiations had stalled over key economic provisions and operational concerns, reflecting broader national trends around frontline workforce recruitment, compensation, and working conditions in the post-pandemic transit environment.

VTA Board Chair Sergio Lopez celebrated the agreement as a win for labor and the community. 

“We have a strong agreement that retains our operators among the highest paid in the Bay Area and nation, and our mechanics as the highest paid nationwide, pending final board approval,” he said. “This is a fair agreement, which benefits both employees and the riding public. I want to express my gratitude to everyone who has played a role in getting us here, as well as the riders we serve.”

With the contract being ratified, VTA officials said it will move forward with a fully engaged workforce and a renewed focus on delivering consistent and high-quality transit service throughout the region. 

The agency added that it is now expected to continue addressing challenges related to fleet modernization, service restoration, and ridership growth in the months ahead.