Jersey City’s Compliance Crisis: What You Need to Know About Labor Contracts

In a shocking revelation, a recent report from the New Jersey Office of the State Comptroller has uncovered that Jersey City is not adhering to the filing requirements of the New Jersey Employer-Employee Relations Act (EERA). This situation raises serious questions about transparency and accountability in public employment practices.

The EERA: What You Should Know

Implemented in 1968, the EERA mandates that public employers, which include municipalities and school districts, file their employee labor contracts with the New Jersey Public Employment Relations Commission (PERC). To ensure public access, PERC has been required to publish these contracts online since 2010.

Jersey City's Compliance Issues

• Municipal Contract Expiration: Jersey City’s municipal labor contract lapsed in 2020, placing it squarely out of compliance.
• School District Status: The most recent contract for the Jersey City School District expired in 2023, but the Office of State Comptroller does not classify it as non-compliant.
• Overall Non-Compliance Rates: As of the end of 2021, 64% of New Jersey's 586 school districts and 27% of its 488 municipalities failed to provide current union contracts to PERC.

Declining Compliance Over the Years

The report highlights a troubling trend: in 2010, compliance rates were significantly higher, with 97% of municipalities and 87% of school districts fulfilling their obligations. Fast forward to now, and the numbers tell a different story.

The State's Response

Acting State Comptroller Kevin D. Walsh expressed his disappointment, stating, “The posting of union contracts on PERC’s website is an important tool for New Jersey residents, unions, and the government. Taxpayers deserve immediate access to this information.”

Barriers to Compliance

The Office of State Comptroller’s report also points out several factors contributing to the lack of compliance:

• No enforcement mechanism exists to compel adherence to EERA.
• Limited awareness among local governments regarding the law’s requirements.
• Insufficient outreach from PERC to remind municipalities of their obligations.

Recommendations for Improvement

To tackle these issues, OSC has suggested that PERC explore its rulemaking authority to create an enforcement mechanism aimed at encouraging compliance. In response, PERC Chair Mary E. Hennessy-Shotter acknowledged the challenges but noted that without legislative amendments, PERC lacks the regulatory power to impose penalties.

What’s Next for Jersey City?

This situation raises critical questions about governance, transparency, and the responsibilities of public employers. As Jersey City grapples with these compliance issues, the implications for taxpayers and public employees alike are significant.

What do you think?

• Should there be stricter penalties for municipalities that fail to comply with EERA?
• Is the lack of awareness among local governments a valid excuse for non-compliance?
• How can PERC improve its outreach efforts to ensure all public employers understand their obligations?
• What impact does this compliance crisis have on public trust in local government?

Your thoughts and opinions are vital to this ongoing discussion—join the conversation today!