The VTA board of directors met in a special closed-door session Sunday morning to vote on the updated contract.
The updated offer includes a wage increase and mutually agreed updates to the conflict resolution process, but introduces changes to previously untouched parts of the contract. Amalgamated Transit Union Local 265, which represents about 1,500 frontline VTA workers, has been on strike since March 10, stopping bus and light rail services across Silicon Valley.
"This proposal represents a fair deal to workers, but I also want to be clear that it comes at a cost and VTA will have to carefully work within our limits to protect service to our customers," VTA Board Chair and Campbell Mayor Sergio Lopez said.
VIDEO: VTA gives update on union negotiations as it enters Day 14 of strike
VTA gives update on union negotiations as it enters Day 14 of strike
The strike has left tens of thousands of riders scrambling to find alternative transportation, such as walking for miles or paying for ride-shares such as Uber and Lyft.
The offer includes an 11% raise over the next three years, going up 4%, another 4% and 3%. It includes updates to the conflict resolution process for workers filing a grievance, before going to a neutral third party. But it also introduces other contract changes, including an attendance policy and a policy that reduces overtime.
Lopez said at a news conference that the 11% wage increase will stretch the transit agency's already thin budget, but represents VTA's commitment to getting service back up and running for riders. VTA General Manager Carolyn Gonot said the newly introduced changes will help the agency cut costs to meet the wage increases.
"This offer of 11% is a significant stretch and proves the agencies commitment to serving the public, ending a strike and getting our system back up and running to protect seniors, students and workers who rely on our service," said VTA Board Chairman Sergio Lopez.
The Amalgamated Transit Union, local 265 delayed a Saturday vote on a previous offer of 10.5%, which ATU leaders encouraged members to vote no on. VTA officials say the transit agency is now facing a $40 million dollar deficit heading into next fiscal year, and this latest contract proposal will put VTA further in the red.
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ATU Local 265 President Raj Singh said the offer is a step back from where negotiations were earlier in the week. Any new terms have to be negotiated, so introducing new terms in an offer only delays the workers' return.
"We're actually going backwards here we are further apart today than we were yesterday, at this point with the new items they added I'm fairly confident that members are going to reject this," Singh said.
Singh said he wanted an agreement with VTA to not discipline striking employees once back on the job. While striking is a legally protected right, he said an agreement would reassure union members. He says there is still a lawsuit against the union and a belief that members who went on strike will be penalized.
"So there's a fear that some of the drivers or employees who go back could be disciplined?" said ABC 7 News Reporter J.R. Stone.
"It's not a fear, it's a reality," said Singh who continued saying, "It's not a fear. Chances are the agency will try to impose some sort of a discipline, and we wouldn't want that."
The union may vote on the new offer either Monday or Tuesday, but Singh said he expects that union members won't approve it and the strike will likely continue if changes aren't made.
Bay City News contributed to this report.
Stay with ABC7 News for the latest details on this developing story.