TTC staff is recommending giving non-union managers the same kinds of raises and benefit improvements that were recently given to their unionized co-workers.

A staff report made public on Monday recommends that non-unionized staff get a two per cent pay hike up until April 2013, retroactive to April 2011.

The pay hikes for each of the 2011, 2012 and 2013 fiscal years will cost a total of $35.7 million. The city had made provisions to cover the $4.9 million cost of the increase in 2011, and for the $11.4 million cost in 2012.

But it will have to figure out how to pay for the estimated $19.4 million pay hike bill in 2013. The proposal for the wage increase comes after riders were hit with a 10-cent increase in the price of tokens.

TTC chair Karen Stintz says the recommendation is being made in the interest of fairness and asserts raise will come without further service cuts.

"Well you know, I think there is no more appetite in the public or council to cut service. And so I don't think that's the strategy that we will bringing in to the next budget," she said.

"We're working through our budget. We are actively looking at savings — doing our work smarter, more effectively, reducing absenteeism. And we're going to need managers to help achieve our cost reduction goals. And so what we want to do is be fair."

The recommendation comes on the heels of an arbitration award earlier this month that granted the TTC's unionized employees — members of ATU Local 113 and IAM Local Lodge 235 — annual wage increases of two per cent, along with several vacation and benefit improvements.

The TTC has already budgeted for the $83.2 million cumulative cost of that pay hike.

The report says historically, the TTC has tried to give non-union staff the same sorts of benefits and wage increases awarded to unionized staff.

Toronto Transit Commission board members will decide whether to implement the recommendations at a meeting on Friday.

"We may find next year's budget —we might have to make different decisions. But right now, moving forward, I think it's the right thing to do," said Stintz.