PITTSBURGH -- The union for Port Authority bus and trolley drivers and other transit employees rejected a proposed three-year contract Friday, but a strike has not been called and workers will stay on the job for now.

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Allegheny County Chief Executive Dan Onorato had publicly asked the union and the Port Authority to accept the proposal, which came from a report by independent fact-finder Jane Rigler.

While the Port Authority board unanimously approved the offer, the Amalgamated Transit Union Local 85 turned it down.

"It is truly unfortunate and very disappointing that the union did not see fit to accept the fact-finder's report that we firmly believe is in the best interest of our employees, transit riders and taxpayers," Port Authority CEO Steve Bland said in a statement.

Union president Pat McMahon said the fact-finder's report did not recognize employees must receive wages that will, at minimum, keep up with the cost of living.

"It would take this union back 50 years, without a doubt," McMahon said. "It is a completely concessionary contract."

The offer, which included 3 percent annual raises, also required workers to pay more for health insurance and would have phased out some retirement benefits. Bland said the deal still included a "very good" compensation and benefits package.

Onorato said the fact-finder's proposal was good because it would have cut legacy costs -- pensions and other long-term benefits -- by 40 percent. He said that's the Port Authority's biggest financial problem.

"She also was basically sending a signal to the Port Authority management team and to the union that you're not going to get everything you want, but you've got to make significant changes if this authority is going to survive long-term," Onorato said.

If union members authorize a strike, it would give leaders the power to call a work stoppage as a last resort if new discussions don't work.

"I'd like to ensure the public that we serve and we respect that Local 85, at this time, is not going to take any kind of job action," McMahon said. "We are going to stay on the job with the hopes that the Port Authority comes back to the table and starts to negotiate in good faith. If they really want to get a fair contract, now is the time."

About 2,300 Port Authority employees -- mostly drivers -- have been working without a contract since June 30.

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