BINDING ARBITRATION REJECTED MTA DISMISSES OFFER TO END WALKOUT.

Byline: Lisa Mascaro Staff Writer

The MTA's striking mechanics offered on Friday to end their three-week walkout if the Metropolitan Transportation Authority would agree to binding arbitration - an option the agency has refused before and flatly rejected again.

Despite what the county's top labor leader called a ``groundbreaking'' proposal, the two sides moved no closer to ending the walkout that has stranded 400,000 riders - most of them poor.

Amalgated Transit Union President Neil Silver lashed out at MTA Chairman Zev Yaroslavsky, claiming the agency has no interest in settling the walkout because it's saving $20 million daily by not operating its bus and rail system.

``They (commuters) could be on the buses in a day or two,'' he said. ``I don't think Zev really cares about the public.''

But Yaroslavsky called the union's offer of binding arbitration ``dead on arrival,'' particularly since the agency had previously said it was unwilling to turn over the responsibility of its spending decisions to a third party.

``This is a disingenuous proposal and everybody knows it,'' said Yaroslavsky, who repeated the MTA's plea to let the workers vote on the MTA's final offer - something Silver said the union is unwilling to do.

``What is he afraid of?'' Yaroslavsky said. ``I don't care if they vote it up or down, but let them vote on it.''

Silver said the agency could find money to fund the union's demand by diverting it from future transportation projects.

``Projects are important, but so are the working people here,'' he said. ``We don't want to pay the projects this year out of the health and welfare fund.''

MTA spokesman Marc Littman responded: ``The capital projects are desperately needed to give people an alternative to gridlock. To even suggest we not go forward with these projects would be a disservice to the public facing the worst traffic in the United States.''

Mayor James Hahn, who serves on the MTA board but cannot participate in the talks because of a past campaign contribution from the union, declined to take a position.

In its two-page, nine-point proposal, the union also said the offer is contingent on the MTA continuing to pay into the union's financially troubled health benefits fund while arbitration is under way. It also wants the MTA to pay for retiree benefits that have been central to the labor dispute.

At an afternoon press conference downtown, Los Angeles County Federation of Labor leader Miguel Contreras praised the union's proposal as a way to end the strike.

``It's time to get these buses back rolling,'' he said.

But MTA chief Roger Snoble issued a statement saying the agency isn't about to turn over responsibility for millions of dollars in contracts to a third party ``who is not accountable to the taxpayers.''

The agency fears that an arbitrator's decision could cost more than the $30 million it's put on the table for wages and benefits.

Silver said he's willing to take a gamble and live with the arbitrator's decision.

Chris Knowlton, a labor law professor at the University of California, Hastings College of the Law, said calling for arbitration during a labor crisis can generate good will from the public by ending the strike, but can be difficult for companies or agencies that don't want to relinquish control.

The MTA has offered the mechanics a four-year contract with some wage increases and increases toward employees' health coverage.

But the health-care increases are not as much as the union wants and do not include benefits for retirees.

Lisa Mascaro, [phone]

lisa.mascaro(at)dailynews.com

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Photo:

Amalgated Transit Union President Neil Silver, right, speaks at the L.A. County Federation of Labor facility Friday with federation Executive Secretary/Treasurer Miguel Contreras.

Phil McCarten/Staff Photographer