Union drivers, mechanics and service workers Tuesday won the right to bring in an arbitrator to settle a contract with RTD, removing the possibility of a second transit strike in three years.

The order from the Colorado Division of Labor doesn't mean RTD and Amalgamated Transit Union Local 1001 will give up on collective bargaining in an effort to reach a new contract.

In fact, talks will resume Thursday for three days. The contract expires at midnight Saturday.

But the ruling gives the union a backstop other than a strike if talks don't produce agreement.

In arbitration, a neutral third party is brought in to listen to both sides and come to a binding decision on terms of a new contract. RTD opposes that, saying it removes the incentive for the union to negotiate in good faith.

The union is seeking what it calls a "modest wage increase" while RTD is asking for a wage freeze for three years. The transit agency has frozen the salaries of its 600-member nonunion staff and reduced bus and light-rail service in response to a sales tax decline of 1.3 percent last year.

"We remain hopeful that we will come to a negotiated agreement working directly with the ATU leadership," said Lee Kemp, RTD's board chair. "In these tough economic times, we need to work together."

Local 1001 President Holman Carter said the union is pleased to have the option of arbitration, although "our goal is to negotiate a fair contract with RTD at the table."