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NJ Transit has withdrawn its contract offer to railroad engineers as a potential strike looms in mid-May. The decision comes after the Brotherhood of Locomotive Engineers and Trainmen (BLET) overwhelmingly rejected a tentative agreement. According to MyCentralJersey.com, NJ Transit President and CEO Kris Kolluri expressed readiness to resume negotiations, proposing a meeting on Monday.
The rejected agreement would have provided an average salary of $172,000 per year for engineers, but the union members found it insufficient. BLET General Chairman Tom Haas stated that the union is not proposing a new offer but has asked NJ Transit to address perceived shortcomings in the previous deal.
The BLET has been without a contract since December 31, 2019, and is seeking wage parity with engineers at other commuter railroads. The union argues that NJ Transit's current offer does not meet these demands. If a resolution is not reached, a strike could begin as early as May 16.
The New Jersey Business and Industry Association, along with other business groups, has urged both parties to avoid a strike, warning that meeting the union's salary demands could lead to a significant increase in the corporate transit fee. This fee, applied to businesses earning over $10 million annually, would need to rise by 27% to cover the costs of the proposed raises.
NJ Transit, the nation's third-largest commuter railroad, serves over 900,000 daily passengers. A strike could severely disrupt services, echoing past labor disputes that nearly led to strikes, such as in 2016.