Relief for Commuters, But at What Cost?
New Jersey’s rail system is back on track. On May 18, 2025, NJ TRANSIT struck a tentative deal with the Brotherhood of Locomotive Engineers and Trainmen, ending a three-day strike that left 100,000 daily commuters stranded. By May 20, trains will run again, and taxpayers won’t face fare hikes. It’s a relief, no question. But dig deeper, and this agreement exposes a troubling truth: public sector unions hold too much sway over the state’s transit system.
For three days, 450 locomotive engineers brought New Jersey’s economy to a screeching halt. Businesses lost millions, commuters scrambled for alternatives, and low-income riders were hit hardest. Governor Phil Murphy and NJ TRANSIT leaders call this deal a balanced success. They’re right to prioritize getting trains moving, but let’s not kid ourselves. This contract hands unions another win while taxpayers remain on the hook.
Why does this keep happening? Because the system rewards union leverage. Each strike or near-strike strengthens their grip, setting a precedent that undermines fiscal discipline. For anyone who cares about responsible governance, that’s a red flag.
Unions Drive Up Costs
The contract’s specifics remain under wraps until union members and the NJ TRANSIT board vote. What’s clear is that locomotive engineers secured a hefty pay increase, outpacing wages at comparable rail systems. This isn’t a one-time expense. Federal rules, like Section 13(c) of the 1964 Urban Mass Transportation Act, protect union wages that inflate transit budgets far beyond market rates.
Research shows outsourcing transit operations could cut costs by 30 percent. Yet, union contracts make privatization a nonstarter. Policy proposals, like those from the Heritage Foundation, urge scrapping Section 13(c) to ease these burdens. Without reform, NJ TRANSIT’s reliance on taxes and federal grants—covering 60-80 percent of its budget—will only grow. Every dollar spent on inflated wages skips critical upgrades to tracks or trains.
Nationwide, transit systems face a $152 billion funding shortfall through 2033. In New Jersey, commuters and taxpayers bear the brunt of these inefficiencies. Why let union demands dictate budgets when market solutions could deliver better service for less?
Debunking the Union Defense
Some claim unions guarantee safe, reliable transit. They highlight new federal safety rules or the fact that this deal spared riders fare increases. Those points sound compelling, but they don’t hold water. Safety can be ensured through regulation, not union strong-arming. And while fares stayed flat this time, the long-term cost of these contracts will likely force higher taxes or ticket prices.
The argument that unions are essential for fair pay ignores how other industries work. Private sectors attract talent with competitive wages, no strikes required. Transit agencies could do the same if freed from outdated federal mandates. The real issue is a system that puts union interests ahead of the public’s needs.
A Better Way Forward
This deal isn’t the final chapter. It’s a chance to rethink transit. New Jersey’s leaders must focus on long-term affordability, not just labor peace. Cutting federal transit subsidies, as some policy experts suggest, would push agencies to innovate. States could turn to public-private partnerships or competitive bidding to lower costs while improving service.
Commuters need a system that serves them, not one paralyzed by strikes. The May 2025 stoppage cost businesses $6 million hourly and left low-income riders stranded. With remote work already slashing ridership by up to 27 percent, transit agencies can’t afford to keep funding premium wages while pleading for bailouts.
Prioritize Taxpayers Now
The NJ TRANSIT agreement got trains running again, and that’s a victory worth noting. But it’s no triumph if it props up a flawed system. Public sector unions wield too much power, and taxpayers pay the price. Every deal that favors labor over efficiency delays a sustainable transit future.
New Jersey’s lawmakers face a clear choice: cater to unions or reform transit for the public. The path forward lies in market-driven solutions that put commuters and taxpayers first. Leaders must act to limit union influence and build a system that works for everyone.
Will they seize this moment, or let the next strike call the shots? New Jersey’s commuters deserve better, and the time for change is now.