Presidential Emergency Board proposes contract terms for NJ Transit workers

An emergency mediation board has issued its recommendations for solving a four-year contract dispute between New Jersey Transit and the New Jersey Transit Rail Labor Coalition.

Appointed by President Barack Obama in July, the Presidential Emergency Board suggested wage increases totaling 18.4 percent over 6.5 years, among other recommendations aimed at ending the years-long dispute, coalition officials said in a press release.

With health insurance factored in, these increases totaled 17.7 percent over the term, or 2.5 percent per year.

Additionally, the board recommended an increase in employees' health insurance contributions and an increase in co-payments. Board members rejected NJ Transit's proposal for a new insurance plan and the agency's plan to make employees responsible for half of excise taxes incurred as a result of the federal Affordable Care Act, coalition officials said.

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

The coalition and NJ Transit now have until Nov. 12 to negotiate a voluntary agreement. If no agreement is reached by that time, either side or New Jersey Gov. Chris Christie can request a second Presidential Emergency Board, which will select "the most reasonable offer," coalition officials said.

This recommendation would still be nonbinding, however.