If approved, the new chairman will likely resume labor negotiations with the MTA's largest union, Transport Workers Union Local 100.

WSJ: Prendergast Picked to Run MTA

"They've been upgrading the fan plants and the pump plants little by little, " said Pete Foley, an official with Transport Workers Union Local 100, which represents many bus and subway workers.

WSJ: New York City Transit System Braces for Water Surge

The Transport Workers Union Local 100 wants wage increases pegged to inflation, the first specific salary demands made in negotiations between the transit union and the MTA, according to people close to the negotiations.

WSJ: Transit Workers Seek Wage Hikes