PEB issues recommendations in hopes to settle dispute between NJ Transit and union coalition

Presidential Emergency Board (PEB) 248 has issued its recommendations to settle the four-year contract dispute between New Jersey Transit and the Rail Labor Coalition of 14 unions representing 4,300 union workers, reports the United Transportation Union.

The PEB found that the Coalition proposals on wages and health insurance contributions were appropriately based on settlements in the commuter industry.

"The Presidential Emergency Board, composed of three veteran, distinguished neutrals, has proposed terms that represent a reasonable compromise approach to settlement," a coalition spokespersons said. "We sincerely hope that New Jersey Transit will now take this opportunity to bring this protracted dispute to an end."

The board's recommendations are non-binding and the parties now have 120 days to reach agreement based on the recommendations.

PEB recommended wage increases totaling 18.4 percent in compounded wage increases over 6.5 year or 2.6 percent per year. When increases for health insurance factored in, the recommendations totaled 17.7 percent over the term or 2.5 percent a year.

"Over the years, wage settlements at NJ Transit have closely followed the general trend of wage changes at the other large commuter railroads in the region, including Long Island Rail Road, Metro-North Railroad, Southeastern Pennsylvania Transportation Authority and Massachusetts Bay Transportation Authoirty. The board's recommendations are consistent with the average annual uncompounded wage increases at the four other large commuter rail carriers. The average annual wage increases of all four of these commuter railroads is 2.6 percent, the same nominal wage rate increase recommended by the Board."

Although the board recommended an increase in health insurance contributions and an increase in co-payments, PEB rejected NJ Transit's proposal for a new insurance plan and their proposal to make employees responsible for 50 percent of excise taxes incurred as a result of the Affordable Care Act.

"The carrier's proposal falls outside the current health insurance contribution trends in the industry. Our recommendation would move the employees' contributions from 1.8 percent to 2.5 percent, which we do not consider an unwarranted increase," PEB stated.

The PEB rejected NJ Transit's proposal to eliminate employee ridership passes. The board also rejected NJ Transit's proposal to reduce contributions to new hire 401 (a) contributions and also recommended provisions for conductor certification pay.

The coalition and NJ Transit have until November 12 to negotiate a voluntary agreement. If no agreement is reached by that time, either side or the governor can invoke a second PEB. That PEB will select the most reasonable final offer. Its recommendation again will be non-binding. The parties will then have until March 11, 2016, to reach a voluntary agreement. If no agreement is reached, self-help would then be possible.

NJ Transit is still evaluating the recommendations and deciding on its next steps. No negotiations have yet been scheduled.

Source: RT & S