Railway strike concern prompts companies to seek WH intervention

OMAHA, Neb.

Businesses are growing increasingly concerned about the renewed threat of a railroad strike after two unions rejected their deals, and they want the Biden administration and Congress ready to intervene.

A coalition of 322 business groups from various sectors on Thursday signed a letter to President Joe Biden urging him to ensure the deals he helped broker last month are approved, as a railroad strike would have disastrous consequences for the economy. The 12 railway unions must approve their agreements to prevent a strike next month.

“It is paramount that these contracts be ratified now, as a rail closure would have a significant impact on the US economy and lead to further inflationary pressures,” wrote the group, which includes nearly all major business groups and a number number of state trading associations. .

Biden has been following the contract dispute closely and appointed a special board of arbitrators this summer to try to help him resolve it, but the White House has not said whether he will personally get involved again.

The railroads have offered 24% raises and $5,000 in bonuses as part of the five-year deal, which would be the biggest increase in more than four decades, but the negotiations hinge on quality concerns of life. The unions that represent the conductors and engineers who drive the trains want the railroads to ease the punitive schedules that they say keep them on call 24/7, and the other unions want the railroads add paid sick leave.

A strike is not imminent because the two unions that rejected their agreements have agreed to retry negotiations before considering a walkout, but the railways face a November 19 deadline with one of these unions. Six smaller unions have approved their deals while four more are expected to vote in the next month, including the two largest and the engineers and drivers in those two unions have the most quality of life issues.

The leader of the Brotherhood of Maintenance of Way Employees Division union who rejected his deal earlier this month said that if the railways were not considering adding sick leave, he had no other choice than to prepare for a strike next month. Union Chairman Tony Cardwell said railroad executives continued to “bow to Wall Street’s continued desire to get more than its fair share” as they raked in billions in profits.

Union Pacific, Norfolk Southern, BNSF, Kansas City Southern, CSX and the other railroads want any deal to closely follow compromises recommended by Biden-appointed arbitrators, so they’ve rejected all paid sick leave requests. The industry also argues that unions have chosen to forgo paid sick leave over the years in favor of higher wages and strong short-term disability benefits that kick in as early as four days away and can continue for up to a year.

Ian Jefferies, who leads the Association of American Railroads’ trade group, said Thursday that “BMWED’s recent proposal was not a realistic offer” because the union “simply demanded more – and they did. knowing full well that the railways would disagree”.

If the two sides can’t agree on a deal, Congress can step in and block a strike. U.S. fuel and petrochemical makers, which endorsed Thursday’s letter, are already lobbying lawmakers to ensure they are ready to act, as refineries rely on railroads to deliver more than 300,000 barrels of crude oil and other chemicals every day.

“We strongly insist on the need to avoid a strike at all costs, not only for our industry. This is going to affect all industries,” said Rob Benedict, vice-president of the AFPM median sector.