NJ Transit Withdraws Contract Offer to Engineers as Strike Threat Looms in Mid-May

the staff of the Ridgewood blog

Ridgewood NJ, tensions are rising between NJ Transit and the Brotherhood of Locomotive Engineers and Trainmen (BLET) after NJ Transit officially rescinded its contract offer, resetting negotiations amid an ongoing labor dispute now entering its fifth year.

The move comes just weeks before a potential mid-May strike that could cripple public transportation across the region.

NJ Transit Calls for New Negotiations After Rejected Deal

In a letter obtained by NorthJersey.com, NJ Transit officials informed BLET General Chairman Tom Haas that they look forward to “re-engaging” in talks, proposing to meet Monday morning.

The rescinded offer follows the BLET membership’s overwhelming rejection of a tentative agreement that would have reportedly boosted the average engineer’s salary to $172,000 annually.

Kris Kolluri, president and CEO of NJ Transit, said, “The union voted down an agreement negotiated in good faith. If that deal didn’t make them happy, I look forward to hearing what they think is reasonable.”

As of now, the BLET has not presented a new proposal. Haas indicated that the union is instead seeking clarity on several concerns raised by its membership regarding NJ Transit’s demands.

Businesses Urge Swift Resolution

NJ Transit has launched a public information page to address the cost impacts of the union’s demands. Officials warn that meeting the BLET’s latest demands would cost $1.363 billion between July 2025 and June 2030 — a $684 million increase over the prior tentative deal.

To fund these costs, NJ Transit said it would need to:

• Raise fares by 17% starting July 1,

• Increase the Corporate Transit Fee by 27%, or

• Significantly reduce service systemwide.

Several major business groups, including the New Jersey Chamber of Commerce, Hispanic Chamber of Commerce, and the New Jersey Business & Industry Association (NJBIA), have voiced strong opposition to increasing the corporate fee, citing concerns about discouraging business investment and harming working families.

Union’s Core Concerns: Competitive Wages and Retention

At the heart of the dispute is the issue of competitive wages. BLET leaders argue that NJ Transit engineers should earn salaries comparable to peers at Amtrak, Long Island Rail Road, and Metro-North to prevent talent loss.

The tentative agreement included:

• 12% wage increases retroactive from January 1, 2020, through June 30, 2024, and

• 3% annual raises from July 1, 2024, to June 30, 2027.

While most rail unions accepted the deal, BLET members rejected it, citing concerns about parity and job retention.

“If we don’t pay a competitive wage, engineers will leave,” said Haas.

Countdown to Potential Strike

With the clock ticking toward a potential lockout or strike, NJ Transit CEO Kolluri said he is committed to fiscal responsibility and to protecting riders and taxpayers.

“I met them more than halfway to their ask,” Kolluri stated. “But preparation for a potential strike is also underway.”

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