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Workplace CultureNew Jersey

New Jersey Transit’s CEO clashes with employees over wage hikes: ‘I cannot keep giving money left and right’

By
Bruce Shipkowski
Bruce Shipkowski
and
The Associated Press
The Associated Press
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By
Bruce Shipkowski
Bruce Shipkowski
and
The Associated Press
The Associated Press
Down Arrow Button Icon
May 14, 2025, 1:45 PM ET
Some 350,000 commuters could soon be scrambling for other ways to reach their destinations if New Jersey Transit engineers walk off the job early Friday.
Some 350,000 commuters could soon be scrambling for other ways to reach their destinations if New Jersey Transit engineers walk off the job early Friday.AP Photo/Julio Cortez

Some 350,000 commuters who work in New Jersey and New York City could soon be scrambling for other ways to reach their destinations if New Jersey Transit engineers walk off the job early Friday.

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NJ Transit — the nation’s third largest transit system — operates buses and rail in the state, providing nearly 1 million weekday trips, including into New York City. A walkout would halt all NJ Transit commuter trains, which provide heavily used public transit routes between New York City’s Penn Station on one side of the Hudson River and communities in northern New Jersey on the other as well as the Newark airport, which has grappled with unrelated delays of its own recently.

Wages and working conditions have been the main sticking points of the negotiations between the agency and the Brotherhood of Locomotive Engineers and Trainmen. The union claims its members earn an average salary of $113,000 a year and says an agreement could be reached if agency CEO Kris Kolluri agrees to an average yearly salary of $170,000.

NJ Transit leadership, though, disputes the union’s data, saying the engineers have average total earnings of $135,000 annually, with the highest earners exceeding $200,000.

“I cannot keep giving money left and right to solve a problem,” Kolluri recently said. “It all comes down to, who is going to pay for this? Money does not grow on trees.”

Tom Haas, the union’s general chairman, has said NJ Transit has adopted a “take it or leave it” approach to salaries during the negotiations.

“We have sought nothing more than equal pay for equal work, only to be continuously rebuffed by New Jersey Transit,” Haas said during a news conference Friday. ”New Jersey Transit engineers want to keep the trains moving, but the simple fact is that trains do not run without engineers.”

If the walkout does happen, it would be the state’s first transit strike in more than 40 years.

Strike contingency plans

If the engineers do walk off the job, the agency plans to increase bus service, saying it would add “very limited” capacity to existing New York commuter bus routes in close proximity to rail stations and will contract with private carriers to operate bus service from key regional park-and-ride locations during weekday peak periods.

However, the agency notes that the buses would not be able to handle close to the same number of passengers — only about 20% of current rail customers — so it is has urged people who can work from home to do so if there is a strike.

The potential strike is already causing some disruptions. On Monday, NJ Transit said it will not operate train or bus service to MetLife Stadium for Shakira concerts scheduled for Thursday and Friday, and said it’s not clear yet if it will be providing service for Beyonce fans planning to attend her shows scheduled at MetLife from May 22 to 29.

Commuter options if there is a strike

If a walkout does occur, NJ Transit has said the chartered buses will run from four satellite lots across the state to the Port Authority Bus Terminal in Manhattan or to PATH train stations in north Jersey, starting Monday. The PATH system is operated by a subsidiary of the Port Authority of New York and New Jersey and its services would not be affected by the potential strike.

As many as 1,000 passengers are on a full train each day, and roughly 70,000 commuters take the trains each day. NJ Transit says each chartered bus could carry only about 100 passengers, and no buses would run on the first day of a potential strike.

Officials expect some train customers will switch to existing NJ Transit bus routes or use the chartered carriers. Others may choose to drive into New York City, where they would have to pay congestion pricing fees.

Negotiations ongoing

The potential walkout comes a month after union members overwhelmingly rejected a labor agreement with management. Both sides had earlier said the tentative agreement included a “reasonable wage increase” for union members as well as the resolution of a long-standing grievance.

Kolluri has said the offer would have raised the average annual pay of full-time engineers to $172,000 from $135,000, but union leaders say those figures were inflated.

Since that proposal was rejected, the two sides have traded jabs over the labor dispute, which goes back to 2019, when the engineers’ contract expired. Union leaders say train engineers have gone without a raise over the past five years and are just seeking pay parity with engineers who work for other rail agencies.

The parties met Monday with a federal mediation board in Washington to discuss the dispute, but both sides and the board have declined to comment on whether any progress was made or if more talks have been scheduled.

New Jersey Gov. Phil Murphy, a Democrat, says all options are on the table if a strike occurs, including declaring a state of emergency. The governor, though, remains optimistic an agreement can be reached.

Join us for a virtual Fortune 500 Europe C-suite conversation, in partnership with Syndio, on mastering workforce decisions and pay transparency in the age of AI. Built for global and regional HR leaders, this session, moderated by Fortune editor Francesca Cassidy, will take place Wednesday, March 25, at 2:30 p.m. GMT (10:30 a.m. EDT) and feature senior HR leaders from Hilton and Syndio. Together we'll explore how CHROs are using AI to drive smarter pay decisions, manage regulatory risk, and strengthen workforce trust. Register now.
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