Another union representing railroad
employees has voted to accept the tentative contract agreement with the
National Carriers Conference Committee (NCCC), which represents most Class I
freight railroads in national collective bargaining. With at least two of 12 unions having already rejected the contract,
however, the possibility of a rail strike still looms in December.
The International Association of
Machinists and Aerospace Workers (IAM) District 19, which represents Locomotive
Machinists, Roadway Mechanics, and Facility Maintenance Personnel at NCCC
freight rail carriers, announced on Nov. 5 that approximately 4,900 of its members
voted to approve the negotiated contract, reflecting a 52% majority. The close
result came with just 59% of union members participating in the vote, however.
The ratified agreement includes a 14.1%
wage increase effective immediately, retroactive to Jan. 1, 2020, and a 24%
wage increase by 2024; $5,000 in lump-sum bonus payments; a cap in monthly
healthcare costs at $398.97 through the end of the five-year contract in 2025; an
additional paid day off; single room occupancy guarantees for traveling roadway
mechanics; and guarantees from the railroads to continue negotiations on overtime,
travel expenses, and per diem.
“We are confident that this is the best
deal for our members. District 19 leadership worked day and night to
communicate the agreement’s benefits and what would happen if it was rejected,”
IAM said in a statement. “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. This agreement is the first step in
addressing some of the issues in our industry.”
The
IAM’s vote brings the total number of unions approving the tentative contract
to seven, with two opposed. Three other unions are scheduled to vote later this
month, including the two largest – the Brotherhood
of Locomotive Engineers and Trainmen Division of the International Brotherhood
of Teamsters (BLET), and the International Association of Sheet Metal, Air,
Rail, and Transportation Workers – Transportation Division (SMART-TD).
The Brotherhood of Maintenance of Way
Employees Division (BMWED), which is the third largest union representing
almost 12,000 rail workers, voted in mid-October to reject the agreement (GM Oct. 14, p. 1), citing ongoing
disputes over paid sick leave and other quality of life issues. Just two weeks
later, the Brotherhood of Railroad Signalmen (BRS), which represents more than
6,000 rail workers, also voted against the agreement (GM Oct. 28, p. 1).
BMWED indicated earlier that a strike
could happen as early as Nov. 20. On Nov. 9, however, the Association of
American Railroads (AAR) issued a statement saying that BMWED and the freight
railroads had agreed to extend their cooling offer period until at least Dec. 4
to allow BLET and SMART-TD to complete their voting. As a result, no work
stoppage will occur prior to that date. The NCCC reported in late October that
it and the BRS had also agreed to maintain the status quo until early December.
“This agreement to extend the cooling off
period affords all unionized employees the opportunity to vote on their
agreements free of a looming strike threat,” said AAR President and CEO Ian
Jefferies on Nov. 9. “Our goal remains the same – successfully completing this
round of bargaining – and we stand ready to reach an agreement with BMWED based
upon the Presidential Emergency Board’s recommendations.”
The 12 unions involved in labor negotiations collectively represent approximately 115,000 rail
workers at the major Class 1 freight railroads. All 12 unions have to
approve contracts to prevent a strike, and if any union continues to reject the
contract, all the rail unions would
honor their picket lines and refuse to work at the end of the cooling off period.
The
railroads have estimated that a rail strike could cost the economy $2 billion
per day. Should a strike appear imminent, Labor Secretary Marty Walsh told Bloomberg on Nov. 4 that the US Congress
would likely intervene to prevent any work stoppage.
“Worst case scenario, if we don’t get to an
agreement, Congress will have to take action,” Walsh said. “That is by design
in the Railway Act. If the unions don’t ratify, Congress is the last stop that
would have to take action.”
In a Nov. 7 letter to Sen. Chuck Schumer (D-N.Y.),
Sen. Mitch McConnell (R-Ky.), Rep. Nancy Pelosi (D-Calif.), and Rep. Kevin
McCarthy (R-Calif.), The Fertilizer Institute (TFI) President and CEO Corey
Rosenbusch urged the congressional leaders to take “urgent” steps to prevent a
rail network shutdown.
“Fertilizer markets have
been experiencing extreme challenges for nearly two years, and this includes
poor rail service, which is the worst it has been in decades,” Rosenbusch said
in the letter. “As such, it is not possible to ‘catch-up’ on lost shipments due
to network disruptions or a shutdown.”
Rosenbusch noted that
railroads start pulling sensitive cargoes off the line days prior to any rail
service stoppage, and fertilizer falls into this category. In September, embargoes
were placed on ammonia shipments four days before a scheduled work stoppage on
Sept. 16. A last minute deal on Sept. 15 averted the strike (GM Sept. 16, p. 1), but the temporary
suspension of ammonia shipments had longer-lasting effects.
“For every day shipments are embargoed, we
essentially lose five shipping days because of the ramp down and ramp up,”
Rosenbusch said.
“Inflation is hurting all Americans. Poor
rail service is a contributing factor, and a complete halt to all freight rail
operations would make inflation drastically worse, especially for those who can
least afford it,” Rosenbusch’s letter concluded. “America’s farmers and
consumers need your help to avoid a catastrophic disruption to freight rail
operations.”
