The Santa Clara Valley Transportation Authority (VTA) has initiated legal action against the Amalgamated Transit Union Local 265 to swiftly end the ongoing strike that has disrupted public transit services. In a complaint filed in the Santa Clara County Superior Court, VTA alleges that the union is in breach of a "no strike" clause that is a part of the collective agreement between the parties. VTA's General Manager Carolyn Gonot asserts, "This strike is having an overwhelming impact on the community, and we are working on all efforts to support our riders getting to work, school, medical appointments, and events," as reported by the Santa Clara Valley Transportation Authority.

Negotiations between VTA and ATU have been ongoing since August 2024, with VTA expressing its dedication to continuing the talks to reach a fair agreement. The latest offer from VTA includes a wage increase of 4%, 3%, and 2% over the next three years. Combined, this amounts to a 9.3% total increase, along with a $1,500 one-time payment for union members. Despite this, ATU members initiated the strike, claiming that the VTA is not negotiating in good faith and has ignored their concerns, as covered in a KTVU news report.

Amalgamated Transit Union Local 265 has voiced demands far exceeding VTA's proposed pay increases, seeking an 18% wage increase over the next three years. Union leaders have criticized the VTA's approach to arbitration cases and highlighted workplace safety as a critical issue for their members. This concern is heightened in the wake of the tragic San Jose VTA shooting in 2021 that resulted in the loss of nine employees. "This was not our intent. We have been very upfront with the agency from day one on what our asks were," ATU 265 President Raj Singh told KTVU, expressing frustration over the VTA's perceived lack of reciprocal engagement.

Financial constraints are influencing VTA's position in the deadlock, with San Jose Mayor Matt Mahan, a member of the VTA board, stating that a significant raise is "unfeasible" due to declining sales tax revenue. He raised concerns that meeting the union's demands might lead to layoffs and service reductions, as was highlighted by the KTVU report. Despite the tensions, the VTA continues to emphasize that their operators are among the highest paid in the region, ranking as the second highest in the Bay Area and fifth in the nation. This recognition of their compensation status has not yet been enough to bridge the divide between VTA's proposals and the union's demands.