Two dimensions of this:
One specific to transit -- cross-subsidies are rife within transit systems, often to the detriment of working class patrons of the system. More accurate pricing sometimes works to the benefit of workers. For instance, *if* in NYC it is true that subways ridden by workers cross-subsidize buses, ridden by suburbanites, then cost-shifting could be progressive. So higher wages don't necessarily mean higher fares for all.
The more general problem Nathan notes is real and often ignored by advocates, namely the interests of working class consumers of public services. Support for something like a transit strike would profitably be coupled with a discussion of more progressive financing of services. At the local level, especially in NYC, the El Dorado of untapped revenue is a tax on the site value of land. There is also an opportunity to discuss "corporate welfare" subsidies (i.e., stadiums, downtown malls) with dubious economic benefits.
mbs