The largest train union in the US voted its members against a tentative contract agreement signed in September, increasing the likelihood of a strike in the coming weeks that may seriously harm the US economy.
The Brotherhood of Locomotive Engineers and Trainmen (BLET) members voted to ratify the agreement, and SMART-TD yardmasters voted to ratify their national agreement. However, train and engine service members of the transportation division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) narrowly voted to reject the deal.
The two main unions that represent conductors and engineers divided their vote, which might put pressure on Congress to act to stop a strike before the holiday season.
“The railroads now have the initiative. See what they do, shall we. This can be resolved at the negotiating table, “Jeremy Ferguson, president of SMART-TD, issued a statement. “Negotiations can resolve all of this without a strike.”
The “continued, near-term threat” of a strike “will require that freight railroads and passenger carriers soon begin to take responsible steps to safely secure the network in advance of any deadline,” according to the National Carriers’ Conference Committee (NCCC), which represents the country’s freight railroads in negotiations.
The railways made it clear that they were unwilling to resume negotiations and stated that Congress may need to step in, as it has in the past, to stop any interruption of the country’s rail infrastructure.
In September, as railroads prepared for a potential work stoppage, the stalemate between U.S. railroad companies and their unionised employees affected flows of hazardous products, including as chemicals used in fertiliser, and Amtrak service in the United States.
Business associations raise the possibility of stranded supplies of food and gasoline. The arrangement, which was based on a presidential emergency board’s proposal, was earlier supported by seven of the 12 unions involved in the negotiations. Three unions had previously voted against it, but they agreed to extend the strike deadline until early December.
Unless Congress steps in, SMART-TD would be allowed to go on strike starting on December 9 or the train carriers would be allowed to lock out personnel.
BLET and other rail unions who have signed agreements have agreed to respect picket lines in the event that any of the unions that voted against the accord go on strike.
By convening hurried contract negotiations at the Labor Department in September that resulted in a tentative contract agreement, the Biden administration assisted in preventing a service interruption.
Karine Jean-Pierre, the White House press secretary, stated last month “Any interruption is wholly unacceptable. The parties concerned must work together to find a solution.” On Monday, the White House opted not to respond right away.
The U.S. Chamber of Commerce warned last week that a potential rail disruption would be disastrous for the economy and urged Congress to intervene to stop it. General Motors (GM.N), an automobile manufacturer, has stated that a stoppage would compel it to stop producing some trucks in approximately a day.
A rail strike could halt over 30% of the weight of U.S. cargo shipments, spark inflation, cost the American economy up to $2 billion per day, and cause a chain reaction of transportation issues that would impact the country’s energy, agricultural, industrial, healthcare, and retail sectors.
The agreement includes five $1,000 lump sum payments over five years, from 2020 to 2024, and a 24% compounded wage rise.
115,000 employees of railroads like Union Pacific (UNP.N), BNSF owned by Berkshire Hathaway Inc. (BRKa.N), CSX (CSX.O), Norfolk Southern (NSC.N), and Kansas City Southern are covered by the unions.
The lack of paid sick days for short-term illness and the railroads’ sick leave and attendance regulations have drawn criticism from labour unions. In over 50 years of national rail discussions, the railways claim that this agreement contains the “most generous compensation package.”