NJBIA President and CEO Michele Siekerka has called on NJ TRANSIT and its train engineers to prevent a potential strike by agreeing to a contract that is financially viable for New Jersey taxpayers, commuters, and businesses. This follows the rejection of a tentative agreement by the Brotherhood of Locomotive Engineers and Trainmen, setting a possible strike date for May 16 at 12:01 a.m.
“A rail strike would be bad for the economy and for job creators, so we urge NJ TRANSIT and the union to continue their efforts to reach an agreement that is reasonable and sustainable for New Jersey’s taxpayers, commuters and employers,” Siekerka stated.
Siekerka explained that New Jersey's largest employers are paying significant amounts due to the Corporate Transit Fee initiated last year. These companies have contributed $1 billion to aid transit in the state and will continue paying an estimated $815 million annually until December 31, 2028.
She further explained that NJ TRANSIT has warned any new salary demands would result in a 27% increase in the Corporate Transit Fee. This, Siekerka asserted, is "clearly something that New Jersey’s highly taxed job creators cannot afford."
The current labor issue began when the union, consisting of engineers whose last contract expired in 2019, rejected a proposed deal on March 6. Around 87% of the union members voted against the agreement, with a high turnout of 427 out of 460 eligible engineers participating.
NJ TRANSIT, the United States' third-largest transit provider by ridership, could see significant disruptions should the strike go ahead. Affected services would include bus and rail, resulting in overcrowding and longer commute times for bus passengers and increased highway congestion as commuters resort to personal vehicles.
The most recent rail strike against NJ TRANSIT occurred in 1983. A potential strike in 2016 was narrowly avoided after a contract was reached just before the deadline.
