Businesses to seek WH intervention as rail strike concerns grow
The deal needs approval of 12 unions and so far six have agreed, two have rejected and others still need to vote
Railroad labor deal shows ‘sign’ that workers have ‘enormous amount of power’: FreightWaves CEO
FreightWaves CEO Craig Fuller argues that the tentative railroad strike agreement has ‘empowered’ the labor movement.
The renewed threat of a railroad strike has businesses worried and looking for help from the White House and Congress.
This comes after two unions rejected the tentative deal that was reached in September.
A coalition involving 322 business groups from a variety of industries signed off on a letter to President Biden Thursday urging him to make sure the deals he helped broker, get approved because a railroad strike would have dire consequences for the economy.
All 12 rail unions must approve their agreements to prevent a strike next month.
SECOND RAIL UNION REJECTS DEAL WITH FREIGHT RAILROADS, ELEVATING CHANCE OF STRIKE
A BNSF Railway terminal worker monitors the departure of a freight train on June 15, 2021, in Galesburg, Illinois. (AP Photo/Shafkat Anowar, File / AP Newsroom)
"It is paramount that these contracts now be ratified, as a rail shutdown would have a significant impact on the U.S. economy and lead to further inflationary pressure," wrote the group.
It is not known if Biden plans to step in. He has been watching the contract dispute closely and appointed a special board of arbitrators this summer to try to help resolve it.
The railroads have offered 24% raises and $5,000 in bonuses in the five-year deal, which would be the biggest increases in more than four decades, but it has been quality-of-life issues that have been the focus of negotiations.
Norfolk Southern locomotives are moved in the Conway Terminal in Conway, Pa., Thursday, Sept. 15, 2022. (AP Photo/Gene J. Puskar) ((AP Photo/Gene J. Puskar) / AP Newsroom)
UNION RAIL WORKERS REJECTED LATEST DEAL WITH RAILROADS: WHAT TO KNOW
Members of the union representing the conductors and engineers want the railroads to ease the punishing schedules that they say keep them on call 24-7, and the other unions want the railroads to add paid sick time.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NSC | NORFOLK SOUTHERN CORP. | 264.26 | +5.33 | +2.06% |
| UNP | UNION PACIFIC CORP. | 239.02 | +5.46 | +2.34% |
| CSX | CSX CORP. | 35.34 | +0.77 | +2.23% |
A strike isn’t imminent because the two unions that voted down their deals agreed to retry negotiations before considering a walkout, but the railroads face a Nov. 19 deadline with one of those unions.
A worker boards a locomotive at a BNSF rail yard in Kansas City, Kan. ((AP Photo/Charlie Riedel) / AP Newsroom)
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Six smaller unions have approved their deals while four others are set to vote over the next month.
The Associated Press contributed to this report.