As a potential strike by New Jersey Transit (NJ Transit) rail workers looms, private bus operator Boxcar Inc. is preparing to ramp up its services significantly. With the strike threatening to strand commuters as early as May 16, 2025, Boxcar announced on May 5 that it aims to nearly triple its capacity. Currently, Boxcar shuttles around 2,000 riders daily between New Jersey’s suburbs and New York, but it expects to increase that number to accommodate up to 6,000 riders if the strike occurs.
The looming strike has caused tensions to rise between NJ Transit and its locomotive engineers union. NJ Transit CEO Kris Kolluri expressed his frustration before Assembly lawmakers on the same day Boxcar made its announcement, criticizing the union’s demands for larger pay increases. The Brotherhood of Locomotive Engineers and Trainmen is seeking wage hikes that would bring their average salary to $190,000, while NJ Transit is proposing a lower figure of $172,000.
“If there’s any citizen, private or government, in this environment who’d get a $25,000 pay raise and say, ‘No, no, that’s not good enough,’ does that sound like a group of people who are grounded in reality?” Kolluri asked during his testimony. The union’s push for higher salaries has been framed by Kolluri as unrealistic given the current economic landscape.
Despite NJ Transit’s warnings about potential financial strains, the union argues that competitive wages are essential for attracting and retaining qualified engineers. Tom Haas, the union’s general chairman, stated, “It costs roughly $250,000 to train an engineer, and it takes time. High churn rates are not a good way to keep a railroad running.” He emphasized that NJ Transit must recognize economic realities, as engineers are leaving for better-paying positions at other railroads.
Mark Wallace, who recently became the national president of the union, warned on May 4 that a strike is likely this month if the two sides do not reach an agreement. The engineers had previously rejected a contract negotiated earlier in the year, which has heightened the urgency for a resolution.
In light of the impending strike, NJ Transit has developed a mitigation plan that relies on bus trips from four designated park-and-ride lots. However, this plan is expected to cover only about 20% of the agency’s daily rail riders. Kolluri has also encouraged those who can work from home to do so, as the agency prepares for the worst-case scenario.
Currently, NJ Transit is set to receive $334 million in federal funding for preventative maintenance in the upcoming fiscal year, which begins on July 1, 2025. This funding represents about 10.5% of the total budget, but NJ Transit has warned of “significant service reductions and drastic cost cutting” if federal support diminishes.
Adding to the complexity of the situation, NJ Transit has indicated that tariffs imposed by President Donald Trump could lead to increased operational costs, although they have not yet quantified the potential impact. The agency has not lost any federal funding to date, but the threat of a strike looms large, potentially exacerbating existing financial challenges.
Union representatives argue that the higher salaries they are seeking are necessary to remain competitive with other rail operators in the region. A federal board had previously found that NJ Transit engineers were paid at least $10 less per hour than their counterparts at Amtrak, the Long Island Railroad, and the Metro-North Commuter Railroad. However, it also noted that engineers at the Southeastern Pennsylvania Transportation Authority were paid roughly 10% less than NJ Transit engineers.
As the deadline for a strike approaches, the pressure is mounting on both sides to find common ground. Kolluri has stated that the engineers’ contract proposal would necessitate fare increases of 17%, a 27% hike in collections from a corporate business tax that funds NJ Transit, or significant cuts to services. He has asserted that these demands are not sustainable given the current economic realities.
In the midst of these negotiations, NJ Transit’s ridership numbers have fluctuated. In January 2025, ridership was down, but it saw a 3% increase in February and returned to even par in March. Kolluri noted that the anticipated congestion pricing tolls in New York, which apply to certain crossings into Manhattan, have not significantly impacted NJ Transit’s ridership.
As commuters brace for the potential disruption caused by a strike, the response from Boxcar Inc. highlights the growing demand for alternative transportation options. The company’s proactive measures to increase its service capacity signal a shift in the transportation landscape as commuters seek reliable solutions amidst uncertainty.
The ongoing conflict between NJ Transit and its engineers underscores the broader challenges facing public transportation agencies, particularly in balancing labor demands with fiscal constraints. As the clock ticks down to the potential strike date, the stakes are high for both the agency and the commuters who rely on its services.
