Pay Dispute and Staffing Shortages Contribute to Strike
NJ Transit CEO Kris Kolluri and New Jersey Governor Phil Murphy, who confirmed the talks were concluded by 10.00 p.m. Thursday without a deal. The big sticking point: wages. Although an earlier proposed agreement would have provided engineers with their first raise since 2019 and back pay, 87 percent of union members rejected it, saying their pay trails that of counterparts at Amtrak, Metro North and other local rail lines.
Union leaders blame NJ Transit for mismanaging funds, citing costly projects like a new headquarters and giving away fares to promote the service. They also say how much those raises would cost, at $4 million a year in total, is minimal (though NJ Transit contends accepting those raises would activate “me too” clauses in other union contracts, boosting overall labor costs over $100 million a year).
Broad Effects Felt by Commuters and Events
As the strike got underway, NJ Transit encouraged commuters to stay at home and work or defer travel. Bus services were ramped up but only had the capacity to handle a tiny portion of regular train travelers. New York metropolitan area traffic congestion will only increase, especially when commuters confront extra “congestion pricing” tolls to enter Manhattan.
Not just daily commuters but also concertgoers are feeling it. Trains to Shakira's Friday night concert have been cancelled, and concertgoers traveling to Beyoncé's upcoming shows have been suggested to make other arrangements.
Union officials are holding the line on their demands for fair wages following a wave of retirements and engineers leaving for better-paying railroads. It takes two years to train replacements, the union warns, and it costs NJ Transit $250,000 per engineer — another drain on NJ Transit’s resources.
No Quick End in Sight to Federal Standoff
Freight rail strikes have been repeatedly quashed by Congress in short order under the Railway Labor Act, but strikes involving commuter rail, such as this one, tend to continue in the absence of federal intervention. In the past, commuter strikes went on for weeks, sometimes months. Congress has yet to introduce legislation to block the NJ Transit strike.
Talks are expected to resume on Sunday, with both sides expressing cautious optimism that a deal is still possible.
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