Economists are pushing the panic button heading into the holiday season after a rail union rejected a tentative agreement with the nation's major freight railroads, teeing up the prospects of a nationwide strike that could prove disastrous for the economy.
On Monday, Members of the Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD), representing more than 28,000 workers, issued a split decision in the vote count, narrowly rejecting a deal brokered by the White House.
The Brotherhood of Locomotive Engineers and Trainmen, which represents engineers, announced over half of its members voted to ratify the deal. The two are regarded among the most politically powerful of the 12 rail unions in contract discussions, according to Fox Business.
A national rail strike, which could begin as early as Dec. 5, would jeopardize the nation's coal shipments and its supply of drinking water while shutting down passenger rail and shipment of goods as the holiday season amps up. According to the Association of American Railroads, a nationwide strike could cost the U.S. economy upwards of $2 billion a day.
“Railroads stand ready to reach new deals based upon the PEB framework with our remaining unions, but the window continues to narrow as deadlines rapidly approach,” the Association of American Railroads, which represents major carriers including BNSF, CSX, Norfolk Southern and Union Pacific, said in a statement. “Let's be clear, if the remaining unions do not accept an agreement, Congress should be prepared to act and avoid a disastrous $2 billion a day hit to our economy.”
“The ball is now in the railroads' court. Let's see what they do,” SMART-TD President Jeremy Ferguson said Monday in announcing his members' vote counts. “They can settle this at the bargaining table. But, the railroad executives who constantly complain about government interference and regularly bad-mouth regulators and Congress now want Congress to do the bargaining for them.”
In September, the Biden administration negotiated a tentative deal that would provide rail workers a 24% wage increase during the five-year period from 2020 through 2024. The workers would also be eligible for thousands of dollars of bonuses not included in the pay raise. If a strike occurs it would serve as a political nightmare for the Administration.
Seven of the 12 unions have voted to approve their contracts. However, in recent weeks, three smaller unions have also rejected their contracts and restarted negotiations, according to The Washington Post.
“As the President has said from the beginning, a shutdown is unacceptable because of the harm it would inflict on jobs, families, farms, businesses and communities across the country,” according to a White House official. “A majority of unions have voted to ratify the tentative agreement, and the best option is still for the parties to resolve this themselves.”
National legislative director at SMART Transportation and conductor, Jared Cassity, told WaPo that members voted to reject the contract because they are angry and stressed over points-based attendance policies.
“It's about attendance policies, sick time, fatigue, and the lack of family time,” Cassity said. “A lot of these things that cannot be seen but are felt by our membership. It's destroying their livelihoods.”
Two smaller unions, the Brotherhood of Maintenance of Way Employees and the Brotherhood of Railroad Signalmen, have rejected their contracts and would be allowed to strike or companies would be able to impose a lockout on Dec. 5 right after midnight, unless Congress intervenes.
If those unions strike on Dec. 5, all of the unions would likely move in solidarity, provoking an industry-wide work pause.
Since the Railway Labor Act of 1926, Congress can intervene in the case of a railway strike to impose a contract on the railroads to block or stop a rail strike.
If that happens, there would be a short period after Thanksgiving for lawmakers to step in to impose a contract. Some Republican lawmakers have said they are ready to impose a contract negotiated earlier this year by the White House. Congress can also extend strike deadlines or force both parties into arbitration.
Due to railway workers' crucial role in the economy labor laws make it more difficult to strike, however, the result will be disastrous.
This is a breaking news story. Check back with American Liberty News for the latest updates.
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Gonna effect supply chain if done
Why do people still put up with unions now days? They haven’t been of any real value for over 50 years now. Their greed has cost the loss of millions of jobs in this country, and in untold amount of money. Of course he won’t, because he and his backers don’t have the guts.