"Making dEviation money taxable for Union and IRS purposes is a Concessionary move" Mach84.
Correct me if I'm wrong, but the IRS determines what is and isn't "Taxable", not a company or union contract.
Now if they paid you the money as compensation first and then told you "Feel free to buy a ticket to work" with the money; then it would surely be taxable. However then you could use the money for anything you wanted at that point.
I think the IRS is starting to look into corporate benefits as compensation, and a free plane ride to work may again be coming under scrutiny as compensation like a CEO using the jet. I'll be curious to see the explanation for this in the contract since I'll be comuting soon.