Negotiations between NJ Transit and the Brotherhood of Locomotive Engineers and Trainmen (BLET) are set to resume Thursday morning in a last-ditch effort to avert a strike that could bring the state’s rail system to a halt by early Friday.

Outside NJ Transit headquarters in Newark on Wednesday, engineers rallied with chants of “Millions paid their dues; it’s time to pay the train crews,” demanding improved wages and working conditions.

“We take pride in our work, but we also need to support our families,” said veteran engineer Daniel Feyjoo, who’s worked nearly two decades behind the controls. “We’re responsible for lives. Mistakes can have serious consequences.”

BLET General Chairman Tom Haas expressed hope for progress: “We don’t want to strike. We’ll meet again tomorrow and hopefully find a resolution.”

If no agreement is reached, NJ Transit trains will stop running at midnight Friday, stranding up to 350,000 daily commuters who rely on the system to travel between New Jersey and New York City. NJ Transit, the third-largest transit agency in the U.S., provides nearly 1 million weekday rides across its rail and bus systems.

The central issue in negotiations remains engineer compensation. The union argues that its members, currently earning about $113,000 annually, deserve pay parity with Amtrak and MTA engineers, seeking an average salary of $170,000. NJ Transit officials dispute those figures, claiming engineers already average $135,000 per year, with top earners making over $200,000.

“I want our workers to earn a fair wage,” said NJ Transit CEO Kris Kolluri. “But it has to be fiscally responsible.”

Earlier this week, both parties met in Washington, D.C., with the National Mediation Board, though no statements followed the meeting. BLET has not yet commented publicly on the outcome.

If a strike occurs, it would mark New Jersey’s first transit walkout in more than four decades.