The union representing New Jersey Transit's rail workers calls the agency's latest contract offer "utterly unacceptable."
NJ Transit has offered unionized rail workers a 10-percent pay increase over 7.5 years. But that raise would be offset by a big increase in health insurance costs.
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The offer was made to an emergency board that was appointed by President Barack Obama to avoid a transit strike.
The Record (http://bit.ly/1IiJUap ) newspaper reports the unions have demanded a 17-percent pay raise over six years, plus a cap limiting health care expenses to two percent of each employee's weekly pay before overtime.
A New Jersey Transit spokeswoman declined to discuss the negotiations.
NJ Transit's rail employees have worked more than four years without a new contract.
Information from: The Record (Woodland Park, N.J.), http://www.northjersey.com