This split vote comes after three unions rejected their individual deals with the railways, which were created with support from the Biden administration. This happened before the original strike deadline of September was pushed back to December.

Union members have decided to reject proposed labor agreements because they feel the contracts don’t resolve the issue of overly demanding schedules and overall quality of life concerns.

For a strike to be circumnavigated, all 12 of the railway unions must agree with their respective freight railway representative on a labor contract. It may become necessary for Congress to step in since a strike could heavily influence America’s economic situation.

“[A rail strike] would cause enormous disruption to the flow of goods nationwide,” the Retail Industry Leaders Association said, despite retail stores having aptly prepared their stock for the influx of purchases during the holiday season.

“Fortunately, this year’s holiday gifts have already landed on store shelves. But an interruption to rail transportation does pose a significant challenge to getting items like perishable food products and e-commerce shipments delivered on time, and it will undoubtedly add to the inflationary pressures already hitting the U.S. economy,” said Jess Dankert, a member of the group that represents over 200 major U.S. retailers.

With the strike deadline approaching as December does, the unions that were unable to strike an agreement have agreed to reassess their negotiations. This progress is met with a further step backward as such conversations are now impossible due to railroads not agreeing to add additional paid sick time to employees.

Such high levels of discord almost necessitate Congress entering into the conflict before any settlements are reached. The government has the ability to impose labor agreement terms without the approval of either side. Businesses and other transportation groups have already urged Biden and Congress to be prepared to do so.

The respective proposed agreements for conductors and engineers included assurance that railroads would attempt to improve consistent scheduling practices and spend time with each railroad further negotiating those terms. In addition, the conductors and engineers were granted three unpaid days off annually, if they were scheduled 30 days in advance.

Railroads made a further concession, losing out on their push to cut crew sizes by one employee. Regardless, conductors in the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-TD) union rejected their deal with 51% voting no.

“The ball is now in the railroads’ court. Let’s see what they do. They can settle this at the bargaining table,” said Jeremy Ferguson SMART-TD president. “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.”

The two sides are staunchly opposed in their approach to paid sick time off. Railroads maintain that their previous initiatives to increase pay and improve short-term disability benefits suffices the need for paid sick days. The unions say granting paid sick days is long overdue, citing the pandemic as proof for paid time off.

The National Carrier Conference Committee, which represents the railroads, said that businesses could feel the impact of a strike before the actual deadline as railroads preemptively halt the shipping of perishables and other chemically fragile cargo.

“A national rail strike would severely impact the economy and the public. Now, the continued, near-term threat of one will require that freight railroads and passenger carriers soon begin to take responsible steps to safely secure the network in advance of any deadline,” the railroads said.

The post More unions reject labor deals, risk for strike increases appeared first on Truck Drivers USA.

“[If a strike lasts one month, it] would likely put a major chill on several leading economic indicators through the first half of 2023,” ACC said.

The group represents U.S. chemical shippers and their analysis dig into the hard numbers that could become a reality in the event of a railway strike. Spanning across several industries 700,000 people could lose their jobs, $160 billion could be removed from the U.S. economy, producer price index (PPI) could rise 4%, and U.S. gross domestic product (GDP) could shrink by 1%.

The PPI keeps track of the average rate of change for domestic producers’ selling prices, according to the U.S. Bureau of Labor Statistics. A two-month long strike could see the PPI rise by 12% and the GDP shrink by 2%.

“A rail strike could shove the economy out of recovery mode and into a recession,” said Martha Moore, ACC chief economist. “A prolonged strike would have an exponential effect for each additional month and drag the country into a potential recession much faster.”

ACC, likely along with other shipping groups, would be directly impacted by a railway strike. ACC doesn’t keep more than a work-week’s worth of empty shippers or materials, according to the analysis. Not having the supplies they need to complete the shipping process could force them to shut down.

Other shippers have mirrored ACC’s discourse with Congress, urging the leaders of the U.S. Senate and House of Representatives to prevent the railways from striking. If a strike seems inevitable, Congress should pass legislation that would make relevant labor agreements signed by the unions and railroads in September, ACC said.

It should be kept in mind that whether or not a recession hits the U.S. economy, the trucking industry is well-insulated from any serious impact. Truck drivers and the professional and skilled services they provide are integral to both American culture and its economy. If America doesn’t need one thing, it’s a railway strike. If it does need another, its truck drivers.

The post Rail strike could increase likelihood of recession appeared first on Truck Drivers USA.

Conversely, the International Association of Machinists and Aerospace Workers (IAM), just ratified a labor agreement, as reported by Freightwaves. The agreement has been in the works for three years and was approved by a vote of union members.

The total count for union membership is nearly 4,900 employees serving in positions of locomotive machinists, roadway mechanists, and facility maintenance employees. Fifty-two percent of those employees voted to accept the agreement.

The union said that they are “confident that this is the best deal for our members,” ending the negotiation period and simultaneously decreasing the chance of a strike severe enough to cause a supply chain blockage. The union aims to continue evolving the agreement to increase overall approval rates.

“Our union recognizes that the agreement wasn’t accepted overwhelmingly, so our team will continue conversing with our members at our rail yards across the nation,” the union said. “This agreement is the first step in addressing some of the issues in our industry.”

The leaders of IAM’s union were committed to forging an agreement, working “night and day to communicate the agreement’s benefits and what would happen if it was rejected,” the union said.

In the labor agreement, the union focused on ensuring a sustainable balance between work and personal life for their employees.

“Our fight was able to shine a light on the work-life balance issues as well as the lack of proper paid sick leave,” IAM said. “Our union will continue to amplify the deficiencies in the carriers’ sick leave and attendance policies.”

Satisfaction was felt for both the IAM union and the NCCC, which represented the freight railways.

“The IAM agreement, like the agreements with six other rail unions that have already ratified, implements the recommendations of Presidential Emergency Board (PEB) No. 250, including the largest wage package in nearly five decades, maintains rail employees’ platinum-level health benefits, and adds an additional day of paid time off for IAM-represented workers,” NCCC said.

The agreement that was struck is the result of an unsuccessful ratification in October.

“The successful result announced today follows an initial unsuccessful ratification attempt by the IAM last month. The ratified agreement is consistent with the framework recommended by the PEB,” NCCC said.

Seven unions have struck agreements with freight railways, and three still need to vote for either approval or rejection, according to the NCCC.

The post Another rail union reaches ratification of labor agreement appeared first on Truck Drivers USA.

A railway strike, that would by default create a railway shutdown, “would have a significant impact on the U.S. economy and lead to further inflationary pressure,” the trade groups wrote in a letter addressed to Biden on Oct. 27.

The Oct. 27 letter explicitly requested the White House to be involved with labor agreement negotiations. Six unions have successfully reached agreements with the railways; the Brotherhood of Maintenance of Way Employees Division (BMWED) and the Brotherhood of Railroad Signalmen (BRS) have rejected agreements and thus, are able to strike.

The trade groups who have reached out to Biden are concerned with the possibility of other unions, specifically the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the International Association of Sheet Metal, Air, Rail, and Transportation Workers Transportation Division (SMART-TD), rejecting their tentative agreements. These are two of the largest unions and their responses to the agreements are expected on Nov. 21.

“We have seen two unions reject the agreement, and there are concerns that others may follow,” the trade group’s letter said. “If that were to be the case, we could witness a strike that would shut down the entire freight rail system.”

Over the summer, the Biden administration first began to aid the unions and railways in reaching satisfactory agreements. Biden created the Presidential Emergency Board (PEB), and appointed labor relations experts to resolve the labor issues and, maybe most importantly, avoid a strike.

“Because the White House played such a central role in the process, we believe it can be helpful in continuing to move the process forward in a positive direction,” the letter said. “Otherwise, Congress will be called upon to act. We continue to urge that the contracts be ratified to provide stability and predictability to the system. Your involvement can only help make that happen and ensure there is no interruption to rail service.”

The post Trade associations send letter to White House on possible railway strike appeared first on Truck Drivers USA.