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.”
