Hundreds of millions in federal money that could help expand Utah Transit Authority services is at risk because the agency’s frontline employee union hasn’t signed required safety documents, UTA alleged in a lawsuit filed last month.
The transit agency sued the union for breach of contract, alleging that the organization refused to engage with or sign on to the federally mandated safety plan.
“This obstinate behavior not only violates the union’s contractual duties but also places in peril UTA’s ability to receive grants from the federal government,” the complaint reads.
The agency filed the lawsuit in Utah’s 3rd District Court. The union — known as Amalgamated Transit Union Local #382 — and the agency have squabbled over the required safety plan before: Last year, UTA alleged in a separate lawsuit that the labor group failed to cooperate on resolving issues as part of a joint safety committee.
UTA, and its employees, expect to take riders on 41 million trips in 2026. Its fiscal 2026 budget includes almost $100 million in federal operating funds.
The agency declined to comment on the lawsuit and did not answer questions about funding availability.
“UTA’s position is to not discuss these matters in a public forum,” spokesperson Gavin Gustafson said in an emailed statement. “The details regarding the legal filing are outlined in the court documents.”
In a statement, Lauren Scholnick, a lawyer for the union, called the lawsuit an “undue and unnecessary escalation.”
“The union is surprised and disappointed that UTA has decided to sue its own employees in this lawsuit, since this was an issue that could have and should have been cleared up with an email or phone call from UTA director Jay Fox to the union’s director, Rod Dunn,” Scholnick said. “This was an unreasonable and litigious way to try to solve a workplace issue.”
Scholnick urged Fox to work with union officials, and if that doesn’t happen, the union “will respond to each of the false statements in the lawsuit as the time comes for that in the legal proceeding.”
Union employees are currently working under a collective bargaining agreement that expired in December.
The safety plan required under federal law lays out risks across a transit agency’s network and includes strategies to reduce those concerns.
The lawsuit accuses the union of withholding its signature on the plan without reason and acting in bad faith to prevent it from being finalized. Under the collective bargaining agreement, the union is required to cooperate with the agency to prevent accidents.
(Rick Egan | The Salt Lake Tribune) A UTA bus on 200 South near the UTA building, on Thursday, May 21, 2026.
The complaint argues that the union is holding up the safety process to gain leverage in other bargaining disputes.
The union recently organized a protest to argue that the agency is “stonewalling” negotiations.
“The Utah Transit Authority remains committed to bargaining in good faith with leadership from Amalgamated Transit Union Local #382 on a successor collective bargaining agreement that supports employees, maintains reliable transit service and ensures continued compliance with federal safety requirements,” Gustafson said.
The Federal Transit Administration told the state authority that it would not award any further grants for Utah transportation projects and operations after April 9 without a cosigned safety plan in place, according to the filing.
The state transit agency estimates that, without the document finalized, about $160 million in federal funds are in danger.
Jose Davila IV