Members of the nation’s two largest railway unions held conflicting votes on the tentative labor contract with major Class I freight railroads on Nov. 20, increasing the likelihood of a strike or work stoppage that could happen in less than two weeks unless Congress intervenes.
Voting concluded at midnight on Nov. 20 for members of the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD). BLET and SMART-TD account for half of the unionized workforce on the nation’s largest freight railroads.
BLET members voted to accept the tentative agreement reached on Sept. 15 (GM Sept. 16, p. 1). SMART-TD members, however, were split on their voting, with SMART-TD train and engine service members voting to reject the proposed contract and SMART-TD yardmaster members voting to accept. Yardmasters represent just 4% of SMART-TD’s membership, however, with conductors, yardmen, brakemen, and engine service workers making up the remaining ranks.
BLET’s membership includes approximately 24,000 locomotive engineers and other railroad workers. A record number of eligible BLET members participated in the ratification vote, with 53.5% voting in favor and 46.5% voting against. Turnout was also a record high for the more than 28,000 eligible SMART-TD members, with 50.87% of train and engine service members voting to reject the tentative agreement and 62.48% of SMART-TD yardmasters voting to ratify.
Representatives of SMART-TD will now head back to the bargaining table with the National Carriers Conference Committee (NCCC), which represents most Class I freight railroads in national collective bargaining. Members of three other unions – the Brotherhood of Maintenance of Way Employees Division (BMWED), the Brotherhood of Railroad Signalmen (BRS), and the International Brotherhood of Boilermakers (IBB) – have also rejected the tentative agreement, while eight unions have now voted to accept the contract.
“SMART-TD members with their votes have spoken, it’s now back to the bargaining table for our operating craft members,” said SMART-TD President Jeremy Ferguson. “This can all be settled through negotiations and without a strike. A settlement would be in the best interests of the workers, the railroads, shippers, and the American people.”
A status quo agreement between SMART TD and railroad management is in effect until Dec. 8. Beginning on Dec. 9, SMART-TD would be allowed to go on strike or the rail carriers would be permitted to lock out workers, unless Congress intervenes. A strike is possible as soon as Dec. 5, however, if BRS does not extend its status quo period to Dec. 9 to align with the other unions.
If there is a strike by SMART-TD or any of the other three rail unions that rejected the contract, BLET and the other seven unions with ratified agreements have pledged to lawfully honor their picket lines. The 12 unions engaged in contract negotiations represent approximately 115,000 rail workers, so a strike or lockout would effectively shut down the nation’s freight rail network.
“We stood shoulder to shoulder with our brothers and sisters in SMART-TD and others in rail labor throughout this process, and we will continue to stand in solidarity with them as we approach the finish line in this round of negotiations,” said BLET President Dennis Pierce in a Nov. 21 statement.
The threat of a strike prompted an urgent call from numerous industry trade groups for Congress to immediately prepare back-to-work legislation, which puts the administration in a tough position, as President Biden has repeatedly billed himself as the “most pro-union” president in US history.
A back-to-work package from Congress would likely require the unions and railroads to accept the agreement mapped out in the Presidential Emergency Board (PEB) recommendations in August (GM Aug. 19, p. 1), with the possibility of binding arbitration to address the remaining contentious issues over paid sick leave and other quality-of-life matters.
“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,” said Ian Jefferies, President and CEO of the Association of American Railroads (AAR). “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. They can settle this at the bargaining table,” said SMART-TD’s Ferguson. “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 Agricultural Retailers Association (ARA) early on Nov. 21 issued an alert asking members to contact their members of Congress “and urge them to intervene without delay to prevent a rail stoppage” of any duration.
“A complete stoppage of the rail system would lead to shutdowns or slowdowns of rail-dependent facilities, resulting in devastating consequences to our national and global food security,” the ARA alert said. “ARA, along with other agricultural organizations, continues to urge these negotiators to remain at the table and work in good faith to come to an agreement.
“However, should the parties not be able to come to terms, Congress needs to remain in session and act immediately to prevent a rail strike or lockout to avoid significant economic damage to US supply chains and further uncertainty for rail customers,” ARA said. “A potential rail stoppage is estimated to cost the US economy up to $2 billion per day.”