One union rejects deal with freight railroads
But IAM agrees to delay any strike by members
OMAHA, Neb. – Members of one union rejected a tentative deal with the largest U.S. freight railroads Wednesday while three other unions remained at the bargaining table just days ahead of a strike deadline, threatening to intensify snarls in the nation’s supply chain that have contributed to rising prices.
About 4,900 members of the International Association of Machinists and Aerospace Workers District 19 voted to reject the tentative agreement negotiated by IAM leadership with the railroads, the union said Wednesday. But the IAM agreed to delay any strike by its members until Sept. 29 to allow more time for negotiations and let other unions vote.
Railroads are trying to reach an agreement with all their other unions to avert a strike before Friday’s deadline. The unions aren’t allowed to strike before Friday under the federal law that governs railroad contract talks.
Government officials and a variety of businesses are bracing for the possibility of a nationwide rail strike that would paralyze shipments of everything from crude and clothing to cars.
There are 12 unions – one with two separate divisions – that must agree to the tentative deals. So far, nine had agreed to tentative deals and three others are still at the bargaining table. IAM members were the first to reject their deal, while two other votes were expected Wednesday.
The tentative deals are based on the recommendations of a Presidential Emergency Board Joe Biden appointed
this summer that called for 24% raises and $5,000 in bonuses in a five-year deal that’s retroactive to 2020. Those recommendations also include one additional paid leave day a year.
The key unions that represent the conductors and engineers who drive trains are holding out in the hope that railroads will agree to go beyond those recommendations and address some of their concerns about unpredictable schedules and strict attendance policies that they say make it difficult to take any time off.
Contract talks continued Wednesday, with Labor Secretary Marty Walsh participating to put pressure on both sides to reach a deal before Friday.
“All parties need to stay at the table, bargain in good faith to resolve outstanding issues, and come to an agreement,” White House Press Secretary Karine Jean-pierre said. “A shutdown of our freight system is an unacceptable
outcome for our economy and the American people, and all parties must work to avoid just that.”
If the two sides can’t agree, Congress could step in to block a strike and impose terms on the railroads and unions, but it wasn’t clear Wednesday how quickly it could or would act. A number of business groups have written letters to lawmakers over the past week urging them to be prepared to step in because of their concerns that a rail strike would be what the Business Roundtable called an “economic catastrophe.”
A freight rail strike would also disrupt passenger traffic because Amtrak and many commuter railroads operate on tracks owned by the freight railroads. Amtrak has already canceled a number of its long-distance trains this week, and it said the rest of its longdistance trains would stop Thursday ahead of the strike deadline.