Picket lines began at locations across the system at 4 a.m. Friday at NJ Transit headquarters, Penn Station-New York, and in Atlantic City.
"It did not have to come to this," Gov. Murphy said during a press conference Friday morning, adding, "but we're not here to point fingers."
Gov. Murphy holds news conference amid NJ Transit strike
NJ Transit stations felt more like ghost towns Friday. No trains came down the tracks at normally busy platforms.
The walkout comes after the latest round of negotiations on Thursday didn't produce an agreement. It is the state's first transit strike in more than 40 years and comes a month after union members overwhelmingly rejected a labor agreement with management.
"We presented them the last proposal; they rejected it and walked away with two hours left on the clock," said Tom Haas, general chairman of the Brotherhood of Locomotive Engineers and Trainmen.
RELATED: 'Trains do not run without engineers': Looming NJ Transit strike could impact 350K commuters
NJ Transit CEO Kris Kolluri appeared Friday alongside Gov. Murphy at a news conference. They said they got close to what the union was seeking on wages, but raised concerns about the longer-term fiscal health of the transit agency.
"What's the point of giving you a pay raise if a couple of years from now your job is not going to exist?" Kolluri said. "That's sort of what we're talking about in the most plain and simple terms."
Gov. Murphy holds news conference ahead of NJ Transit strike
Murphy said it was important to "reach a final deal that is both fair to employees and at the same time affordable to New Jersey's commuters and taxpayers."
"Again, we cannot ignore the agency's fiscal realities," Murphy said.
The next talks are scheduled for Sunday with the help of federal mediators. The parties met Monday with a federal mediation board in Washington, and a mediator was present during Thursday's talks.
Wages have been the main sticking point of the negotiations between the agency and the Brotherhood of Locomotive Engineers and Trainmen that wants to see its members earn wages comparable to other passenger railroads in the area. The union says its members earn an average salary of $113,000 a year and says an agreement could be reached if agency CEO Kris Kolluri agrees to an average yearly salary of $170,000.
NJ Transit leadership, though, disputes the union's data, saying the engineers have average total earnings of $135,000 annually, with the highest earners exceeding $200,000.
New Jersey Transit has reached a deal with the 14 other unions representing other NJ Transit workers. Transit officials say they can't offer BLET more money without the other 14 unions coming back for more.
"You may ask: they're such a small group of people, how could they possibly bankrupt an agency. And this is how," said Kolluri.
The union has seen steady attrition in its ranks at NJ Transit as more of its members leave to take better-paying jobs at other railroads. The number of NJ Transit engineers has shrunk from 500 several months ago to about 450 today.
The agency had announced contingency plans in recent days, saying it planned to increase bus service, but warned riders that the buses would only add "very limited" capacity to existing New York commuter bus routes in close proximity to rail stations and would not start running until Monday. The agency also will contract with private carriers to operate bus service from key regional park-and-ride locations during weekday peak periods.
Engineers union speaks about NJ Transit strike
However, the agency noted that the buses would not be able to handle close to the same number of passengers - only about 20% of current rail customers - so it urged people who could work from home to do so if there was a strike.
We have posted a list of commuter alternatives HERE, for during the strike.
New Jersey Transit buses and the Riverline Light Rail Line are not affected by the strike.
The Associated Press contributed to this report.