PITTSBURGH -- The Port Authority was in turmoil Friday night after the union representing drivers and other workers rejected the latest contract offer.

Allegheny County Chief Executive Dan Onorato had some tough words for the union, saying the Port Authority would not get the $27 million generated by the new drink tax unless it comes to terms.

The latest contract for some of the workers at the Port Authority came from a neutral third party as a fact finder whom both the board and the union agreed to be present.

The Port Authority accepted the contract, but the union said no.

"It was rejected. We're ripping it up -- nothing's on the table now," Onorato said. "With the rejection of the fact finder's report today, there is a very, very strong likelihood that service won't exist by the end of the year in Allegheny County."

Despite the rejection, the union said it will not strike, but members called the latest proposal unfair.

"The health care additional contributions would definitely, by the end of the contract, wipe out any gains that we would get with the 3 percent increases," Local 85 President Patrick McMahon said.

The new 10 percent tax on poured drinks -- and a $2-per-day rental car tax -- were created to raise $27 million for the Port Authority, but Onorato said they won't get that money without a contract.

He also said if the Port Authority continues to operate under the current contract, it is on course to be bankrupt by the end of the year.

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Port Authority Union Rejects Offer With Raises, Cost-Cutting

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