NJ Transit labor fight: Is a strike, lockout on the horizon?

Mike Davis

@byMikeDavis 

5:31 p.m. EST January 12, 2016

Asbury Park Press

Is a rail shutdown in NJ Transit's immediate future?

NEWARK - A second federal labor board has ruled in favor of the 12 rail labor unions embroiled in four-year contract negotiations with NJ Transit, opening up the possibility of a rail shutdown due to strike or lockout.

The labor unions have argued they're only trying to keep up with union contracts at other major railroads. NJ Transit, on the other hand, believes catering to the demands would require massive fare hikes to pay for them.

But if no compromise is reached, it opens up the possibility for a rail shutdown via strike or lockout.

Under federal law, a 60-day "cooling off" period is mandated before the parties take any action. While that might include a settlement, it also allows both sides to resort to "self-help."

Last year, the Brotherhood of Locomotive Engineers and Trainmen -- the largest union -- authorized a strike if a settlement could not be reached. NJ Transit has never had a strike in its 36-year history.

David Decker, general chairman for the union, did not immediately return a call seeking comment on Tuesday.

"Similar to the first [board's findings], the latest recommendations are not affordable," NJ Transit spokeswoman Lisa Torbic said in an email. "NJ Transit remains committed toward negotiating an affordable, fair and equitable settlement."

It's the second emergency board assigned to the contract negotiations: In July, President Barack Obama called the first board after months of stalled negotiations. That board also favored the unions in their report, which NJ Transit rejected and called for a second board.

This panel was tasked with reviewing both sides' final offers, which are still leagues apart on the biggest issues -- salary increases and healthcare contributions.

In their final offer, the unions proposed 11.5 percent in retroactive wage increases dating back to Jan. 1, 2012, with semi-annual increases of 1.5 to 2 percent through July 1, 2017.

NJ Transit proposed a $1,000 lump sum payment and 6.9 percent in retroactive wage increases, with regular increases of 1 percent and 1.5 percent from Jan. 1, 2017 to Jan. 1, 2018.

The healthcare contribution schedule offered by the unions called for 2 percent contributions until next year, when they will increase to 2.5 percent.

NJ Transit offered to introduce a completely new healthcare plan for all new employees, which require a 20 percent contribution. Current employees will have the option of staying in their current plans and paying a 20 percent contribution or switching to the new plan and contributing 10 percent.

Since the first board's recommendations, the unions and NJ Transit have found some common ground.

Both sides offered the same pension plan, with new employees receiving a 1 percent contribution in their first year, 2 percent in their second year and so on. Under both plans, contributions max out at 5 percent, achieved during the fifth year.

A previous issue of free ridership passes for employees had already been resolved: NJ Transit reinstated them in December after the terrorist attacks in Paris. According to the rail agency, it's an extra safety precaution, as all NJ Transit employees are trained to monitor areas for terrorism indicators.

Mike Davis: (732) 643-4223; mdavis@gannettnj.com. Click here to sign up for Mike's weekly "Road Sage" newsletter.