City council defeated a proposal to ask the province to deem the TTC an essential service by the narrowest of margins.
The vote came in at 22 for, 23 against after hours of debate on Thursday.
Mayor David Miller and his supporters defended the current model, as does the Toronto Transit Commission's management. One report pegged the additional cost at $11.2 million.
The city's executive committee also recommended against designating the TTC an essential service but several councillors have been actively lobbying for the move. About 4,000 Torontonians have signed an online petition asking the city to take the TTC's right to strike away.
The designation would make it illegal for employees to walk off the job to back contract demands, submitting them instead to an arbitrated settlement. However, workers could still launch wildcat strike actions.
Some analysts say that prolonged work-to-rule campaigns can also be disruptive and costly.
In April, the TTC's unionized workers went on strike after rejecting a contract offer that its bargaining committee had recommended. The province passed back-to-work legislation two days later to end the strike.
That move had Miller agree to study the issue of making the TTC an essential service.
Bob Kinnear, the head of the local transit union which represents TTC workers, said deeming the TTC essential would do more harm than good.
If the TTC is deemed an essential service, workers could demand higher wages that are consistent with what employees of other essential services make.
However, Coun. Cliff Jenkins said that most riders would be willing to pay a little more if it would guarantee them access to year-round public transit. He has pegged the cost at a penny per ride per day.
