The union representing New York Metropolis subway and bus staff says a agency contracted to deal with staff’ compensation for the MTA has been late to concern funds to 1000’s of the union’s members.
“My most vulnerable members are not being paid, on account of gross mismanagement by the MTA,” John Chiarello, president of Transport Staff Union Native 100, informed the Metropolitan Transportation Authority’s board Wednesday.
In response to the union, the MTA had been dealing with staff’ comp funds in-house, outsourcing small items of it, till final 12 months, when it employed Sedgwick Claims Administration Companies to manage this system.
The MTA board voted final September to rent Sedgwick to the tune of $51.6 million for 3 years, with an possibility to increase that contract by three extra years for a further $35.2 million.
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COREY SIPKIN/AFP by way of Getty Pictures
A New York Metropolis MTA employee seems to be down the platform from a subway automobile after arriving on the Coney Island station in Brooklyn, New York, on Might 6, 2020. (COREY SIPKIN/AFP by way of Getty Pictures)
A abstract of the proposal, offered to board members on the time, mentioned, “The MTA’s self-administration of its workers’ compensation programs has long been hampered by a shortage of staff … coupled with budgetary constraints, cumbersome claims administration IT systems, lack of training and expertise, and paper-based processes.”
Transferring to an outdoor agency like Sedgwick “would result in an annual reduction of $20 million or more in workers’ compensation program benefits and costs,” the abstract continued.
Sedgwick took over administering the transit company’s staff’ comp in Might. That’s when union officers say the difficulty started.
“In two short months it completely fell apart,” Chiarello mentioned.
Emily Louise Allen, a retired sales space agent, mentioned she’s been counting on staff’ comp funds after an data board fell on her inside a token sales space in 1989, leaving her concussed and with persistent again accidents.
“I don’t get my money like everybody else,” she informed reporters.
For twenty-four years, she mentioned, her checks got here on time — as soon as each 10 days. However she informed reporters her most up-to-date verify arrived 30 days late.
“My bills are behind,” she mentioned. “The telephone company, especially, wants their money. And my landlord wants his money.”
Former MTA bus driver Charles Wilson mentioned he’s been getting staff’ comp for what he referred to as “a career-ending back injury” — fracturing 5 vertebrae after slipping on ice whereas on the job.
“I haven’t been paid since June 6,” he informed reporters. “We’re going on five [missing] checks.”
“My whole family gave their life to this place,” Wilson mentioned, noting that his 4 brothers and his father had all been transit staff. “To be treated like this is demeaning and demoralizing.”
Addressing the difficulty earlier this week, NYC Transit President Demetrius Crichlow mentioned he was working to resolve the difficulty.
“We understand the gravity of this,” he mentioned. “I understand the severity and have been personally engaged with our labor partners, and we’re looking to turn the tide on these delays.”
“We anticipated that it would be a challenge,” Crichlow mentioned Wednesday. “In order to plan for that, we paid people six weeks in advance. We thought that would be sufficient.”
“Unfortunately, the transition was a little more difficult than what Sedgwick had anticipated,” the transit boss added.
Crichlow mentioned his crew was receiving each day updates from the contractor.
“We’re holding them accountable,” he mentioned.
Initially Revealed: July 30, 2025 at 9:35 AM EDT
