NEWARK Could the four years of negotiations between NJ
Transit and thousands of unionized employees be nearing a conclusion?
The federal government hopes so.
In a 50-page report, Presidential Emergency Board No. 248
largely sided with a coalition of 12 unions, calling for wage increases nearly
double those suggested by NJ Transit and mirroring a health insurance plan
proposed by the unions.
A joint statement from the NJ Transit Rail Labor
Coalition, which has been bargaining for all 12 unions, said the board
recommendations fell largely in line with their own recommendations.
“The Presidential Emergency Board, composed of three
veteran, distinguished neutrals, has proposed terms that represent a reasonable
compromise approach to settlement,” the statement reads. “We sincerely hope
that NJ Transit will now take this opportunity to bring this protracted dispute
to an end.”
But in an email, NJ Transit spokeswoman Nancy Snyder said
more negotiations were on the horizon.
"These recommendations are unacceptable to NJ
Transit and fail to recognize economic realities or the massive cost burden
they will put upon our customers," Snyder said. "NJ Transit cannot
agree to a recommendation that New Jersey and our customers cannot afford. We
will continue to negotiate for a fair and equitable settlement with our rail
labor unions."
President Barack Obama appointed the three-member board
in July after four years of stalled contract negotiations between NJ Transit
and its 4,300 unionized employees.
The board recommended a 6 ½ year contract, retroactive to
July 2011 and lasting until January 1, 2018. The unions sought a six-year deal
while NJ Transit was seeking a 7 ½ year contract, which the board wrote was out
of character for rail labor negotiations.
The board’s findings are non-binding. The two sides have
until Nov. 12 to come to an agreement. If not, either side can call a second
Presidential Emergency Board, which would produce another recommendation in
March.
Beyond that, the future is uncertain. In July, the Brotherhood of Locomotive Engineers and
Trainmen — which represents 88 percent of the workforce — authorized a strike.
Wages
The crux of the board’s recommendations is an average 2.6
percent annual wage increase, close to the unions’ proposed 2.9 percent
increase.
NJ Transit is seeking an annual 1.4 percent wage
increase, arguing that it could not afford the unions’ proposal.
The Presidential Emergency Board members didn’t buy that
argument: “We do not doubt that (NJ Transit’s) budget is tight, its expenses
high and rising and its sources of revenue uncertain,” the board wrote.
“Those circumstances are not new, however. There has
always been a lack of funds but NJ Transit has always been able to secure funds
adequate to pay industry standards. There has always been annual uncertainty,”
the board wrote.
Health insurance
increases
The board also sided closely with the unions on the issue
of increased health insurance costs. The board recommended union employees
contribute 2 percent of their straight-time pay until Jan. 1, 2017, when it
would increase to 2.5 percent.
NJ Transit suggested employees pay 10 percent of their
monthly premium cost, which would at intervals of 2.5 percent until they were
paying 20 percent.
However, the board recommended increased co-pay costs
similar to those proposed by NJ Transit. The proposals would save NJ Transit
close to $1 million, according to the agency’s own statistics.
NJT Hakim in Hoboken 3.14 102.JPGBuy Photo
NJ Transit Executive Director Veronique Hakim listens to
commuter Jeff Grob of New Providence at Hoboken Terminal Friday morning. Hakim
has been traveling the system talking to riders and employees after taking the
reigns on March 2. (Photo: Staff Photo
Larry Higgs )
Certification pay
for conductors
The board also recommended that conductors receive an
extra 20 minutes' pay per shift for time spent pursuing their Federal Railroad Administration certification
— the same reimbursement paid to similar to locomotive engineers.
NJ Transit had proposed reimbursing conductors with $10
per shift, similar to the system used by the Long Island Railroad and
Metro-North Railroad. The board said that change would create an unequal
relationship within the ranks.
“Internal parity is more significant than external parity
with the LIRR and Metro-North,” the Presidential Emergency Board wrote. “It
would be disruptive for one class of employees to be working alongside another
class, both of whom are getting certification pay but at different levels.”
According to public records, assistant conductors receive
anywhere from $30,000 to $89,000 per year in base pay. Conductors have a salary
range from about $60,000 to $121,000.
New pensions for
new hires
The only issue on which the PEB sided with NJ Transit was
a new pension system for new employees. Under the board’s recommendation, the
agency would contribute 1 percent of new employees’ gross earnings into a 401
(a) fund during the first year of employment.
The contribution would increase to 2 percent in the
second year, continually increasing until maxing out at 5 percent in the fifth
year.
Currently, NJ Transit contributes 5 percent of all employees’
salaries except for conductors.
No recommendation
The board did not issue a recommendation on one major
bone of contention: Free transit passes for employees.
Citing a report from the state comptroller’s office, NJ
Transit executive director Veronique Hakim told the board that eliminating free
ridership passes would save $750,000 annually. The unions argued that employees
need the passes to save on commuting costs and because parking at the agency’s
Newark headquarters can be difficult.
But the two sides had barely negotiated the issue, the
board ruled: NJ Transit did not propose eliminating the passes until the PEB
hearings.
Similarly, NJ Transit executives did not bring up new
work rules – particularly an anti-discrimination measure and mandatory direct
deposit for paychecks – until the hearings.
The board did not issue a recommendation on those points.
Source: Asbury
Park Press
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