T leader agrees to rescind executive raises

By Noah Bierman, Globe Staff

Under pressure from the Patrick administration, MBTA General Manager Daniel A. Grabauskas today agreed to rescind a 9 percent pay increase granted last week to 273 executive employees and to replace it with a 3 percent raise only for those making less than $70,000 per year.

Earlier, Secretary of Transportation Bernard Cohen announced that he would send Grabauskas a letter asking him to immediately halt the raises. Cohen, who chairs the MBTA board, added that “other MBTA Board members have been made aware of and support this request.”

The MBTA has been struggling financially and Grabauskas has threatened a large fare hike in 2010 if he does not get help from the state Legislature. He defended the pay raises last week, saying the matched salary increases that union employees are receiving after going two years without a contract and three years without a cost of living increase. He has pointed out that many of the employees covered by the raises were administrative assistants and budget analysts, along with the agency's highest paid executives.

But the decision to award the raises had drawn criticism, given the T's financial problems.

Cohen's proposal would spare some of the lower paid employees, giving them a partial raise, while asking executives to go without one. The MBTA has an $8.2 billion debt and had to reach into reserves to stay afloat this year.

“This request is a necessary and important step as we leave no stone unturned in restoring fiscal health to all transportation agencies and deliver high quality and cost effective services to citizens of the Commonwealth," Cohen said in his statement.

Grabauskas also announced that we would voluntarily decline the cost of living increase he was due under his contract this year, as would his general counsel.

• Comment
• Permalink
• Email