Presidential Emergency Board (PEB) 252 has declared New Jersey Transit’s (NJ Transit) “Final Offer as the most reasonable proposal in the ongoing labor negotiations” with the Brotherhood of Locomotive Engineers and Trainmen (BLET), NJ Transit reported Jan. 21.
Former President Joe Biden on Nov. 21, 2024, signed an Executive Order creating PEB 252—the second PEB he formed to help resolve the years-long collective bargaining dispute between NJT, which runs the nation’s third-largest commuter railroad, and BLET. The parties had been in National Mediation Board-sponsored mediation for three years. According to the union, its 494 NJ Transit locomotive-engineer members have sought a new labor agreement since October 2019 and “are the lowest paid engineers working in commuter service in the nation.”
After “carefully evaluating proposals” from both NJ Transit and BLET, the PEB “found in favor of the [transit] agency last summer and again finds in favor of the agency today, concluding that the agency’s Final Offer is the most reasonable,” NJ Transit said. “NJ Transit hopes that this second PEB report will lead to continued good-faith negotiations and a voluntary settlement.”
The National Mediation Board “expects to publish the full [PEB 252] report on Wednesday, January 22,” according to NJ Transit, which noted that the PEB “expressed its hope that the report will assist both parties in reaching a voluntary resolution to the dispute.”
PEB reports are not binding, but in general, have formed the basis for agreements.
BLET on Jan. 21 said that it has rejected the PEB decision. It noted that PEB’s decision stated: “Despite concluding that NJT’s Final Offer is the ‘most reasonable offer’ of the two presented to us for selection, we must candidly acknowledge that there are certain portions of the Carrier’s Final Offer that we do not believe provide a reasonable basis for the voluntary resolution of the Parties’ dispute.”
According to a timeline published by the National Mediation Board (see below; courtesy of BLET), “status quo” will continue for 60 days—meaning that no work stoppages are permitted. The parties will be free to engage in self-help at 12:01 a.m. on March 22, 2025, where engineers are permitted under the rules of the Railway Labor Act to strike, or management can lock-out workers.
“I am pleased to learn that the Presidential Emergency Board has found in favor of NJ Transit in these important labor negotiations,” New Jersey Gov. Phil Murphy said. “The Board’s findings reaffirm NJ Transit’s commitment to balancing fair treatment for its employees with its responsibility to provide reliable service for the people of New Jersey.”
“We are encouraged by the PEB’s recognition of our efforts to present a fair and reasonable offer, as evidenced by the original contract that was ratified by 14 of our 15 rail unions, and supports our workforce while ensuring the continued delivery of safe, reliable service for our customers,” said NJ Transit President and CEO Kris Kolluri, who took over agency leadership on Jan. 15. “We remain committed to reaching a resolution that is both fair and sustainable for NJ Transit, the hard-working men and women of the BLET, and New Jersey taxpayers. We look forward to constructive discussions with our labor partners in the days ahead.”
“BLET has rejected the non-binding decision which now sets in motion a 60-day cooling-off period, mandated by the Railway Labor Act, ending at 12:01 am on March 22,” the union said. “On that date, a rail strike at NJT[ransit] becomes permissible, unless blocked by [the new U.S.] President.”
Post-Mediation Dispute Resolution Process, Explained
“The post-mediation dispute resolution process for commuter railroads provides for up to two emergency boards and a public hearing,” according to the National Mediation Board. “If no settlement is reached, either party to a dispute, or the Governor of any affected state, may request that the President create an emergency board to report on a dispute over the terms of a collective bargaining agreement.
“Creation of an initial emergency board for a commuter railroad dispute delays a strike, lockout or other form of self-help, generally for 60 days. The emergency board has 30 days to issue its report. Generally, emergency boards provide recommendations for settlement of the dispute. After the emergency board reports to the President, the parties to the dispute have a 60-day cooling off period to consider the recommendations of the emergency board and to reach an agreement.
“If no agreement is reached 30 days after the report and recommendations of the first emergency board, then the National Mediation Board is required to hold a public hearing. If no agreement is reached 60 days after the report and recommendations of the first emergency board, then either party to the dispute or the Governor of any affected state, may request that the President create a second emergency board to select among final offers. Final offers are to be submitted to the board within 30 days of its creation. The board has an additional 30 days to select a final offer. After the second emergency board reports to the President, the parties have a final 60-day cooling off period to consider the recommendations of both emergency boards and to reach an agreement.
“If no agreement is reached at the end of the final cooling off period, then the parties may engage in self-help, including strikes, lockouts and unilateral changes in terms and conditions of employment.”
