Rail workers on Sept. 22 were scheduled to begin the voting process to ratify the tentative agreements reached last week between Class 1 freight railroads and unions that averted a potential strike or lockout on Sept. 16. According to multiple media reports, however, many union members are unhappy with the deal, and ratification is far from certain.
The negotiated contract (GM Sept. 16, p. 1) gives rail employees a 24% wage increase over five years, retroactive to Jan. 1, 2020, as well as an immediate bonus payout of $11,000 upon ratification. The last-minute negotiations also secured concessions from railroads to amend attendance policies, allowing workers three extra unpaid days off per year for doctor’s appointment without penalty.
The Associated Press, however, reported this week that a number of newly formed working groups of employees who are unhappy with the agreement staged protests on Sept. 21 urging members of 12 unions representing 115,000 rail workers to oppose its ratification. At issue are ongoing concerns about overworked employees and understaffing caused by the implementation of Precision Scheduled Railroading (PSR) policies at major railroads.
And at least one union – the International Association of Machinists and Aerospace Workers (IAM), which represents 4,900 locomotive machinists, track equipment mechanics, and facility maintenance personnel – voted last week to reject an agreement with the National Carriers’ Conference Committee (NCCC), which represents the six Class 1 railroads in contract negotiations.
“IAM freight rail members are skilled professionals who have worked in difficult conditions through a pandemic to make sure essential products get to their destinations,” IAM said in a Sept. 14 statement. “We look forward to continuing that vital work with a fair contract that ensures our members and their families are treated with the respect they deserve for keeping America’s goods and resources moving through the pandemic. The IAM is grateful for the support of those working toward a solution as our members and freight rail workers seek equitable agreements.”
Two smaller unions have reportedly already approved the new contract, the Associated Press reported, and IAM remains at the negotiating table. Vote counting for the nine other unions will last until mid-October, but the voting results from the three largest unions, which represent approximately 60,000 rail workers, are not expected until mid-November.
If any of the unions do reject their contracts, the Associated Press reported that Congress could still be forced to step in later this year to avert another strike, which the Association of American Railroads (AAR) estimates could cost up to $2 billion a day in economic losses. The risk for union members who are unhappy with the agreement, though, is that any contract imposed by Congress could end up being worse than the one negotiated with the railroads.
“We are hopeful that union membership will vote to approve the tentative agreement to ensure freight rail in the US continues to operate,” said Corey Rosenbusch, President and CEO of The Fertilizer Institute (TFI), in a Sept. 15 statement. “As we move forward, it is also essential that rail carriers hire and retain the appropriate employee staffing levels to support a strong economy. Staff reductions in recent years have dramatically hurt rail service and made the rail-labor contract negotiations more challenging.”