Academic journal article Monthly Labor Review

NJ Transit System Contract Runs 7 Years

Academic journal article Monthly Labor Review

NJ Transit System Contract Runs 7 Years

Article excerpt

The New Jersey Transit System and its largest union, the United Transportation Union, negotiated a 7-year contract th >;at was expected to lead management and leaders of 10 other unions to add 3 years to their recently negotiated 4-year contracts scheduled to expire in June 1989. The 7-year agreement and the 4-year agreements were all retroactive to the July 1, 1985, date when conditions of employment were subject to amendment under provisions of the Railway Labor Act. Common terms for the United Transportation Union and the other unions during the 4-year period ending in June

1989 include a $1,000 lump-sum payment in lieu >; of a wage increase retroactive to July 1, 1985,

3-percent wage increases retroactive to July of 1986 and 1987, and a 4-percent increase retroactive to July 1988.

Terms for the 3 additional years of the United Transportation Union accord, which were expected to set a pattern for the other unions, included 5-percent wage increases in July of 1989, 1990, and 1991; adoption of a pension plan supplementing benefits under the Railroad Retirement System and financed by an employer obligation equal to 3 percent >; of employee earnings; adoption of a savings plan permitting the 600 conductors and brakemen to defer paying taxes on up to $7,500 of their annual earnings; one new uniform a year plus $175 for maintenance (was one or two uniforms a year with the transit authority paying half the cost); and a reduction to I hour (previously 2 hours) in the maximum permitted unpaid layover between split shifts (meaning that employees on a

2-hour layover will now normally receive 9. …

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