One union rejects deal days ahead of rail strike deadline

Members of one union rejected a tentative deal with the largest U.S. freight railroads Wednesday while three other unions remained at the bargaining table just days ahead of a strike deadline, threatening to intensify snarls in the nation's supply chain that have contributed to rising prices.

Associated Press

Sep 14, 2022, 7:24 PM

Updated 681 days ago

Share:

One union rejects deal days ahead of rail strike deadline
OMAHA, Neb. - Members of one union rejected a tentative deal with the largest U.S. freight railroads Wednesday while three other unions remained at the bargaining table just days ahead of a strike deadline, threatening to intensify snarls in the nation's supply chain that have contributed to rising prices.
About 4,900 members of the International Association of Machinists and Aerospace Workers District 19 voted to reject the tentative agreement negotiated by IAM leadership with the railroads, the union said Wednesday. But the IAM agreed to delay any strike by its members until Sept. 29 to allow more time for negotiations and to allow other unions to vote.
Railroads are trying to reach an agreement with all their other unions to avert a strike before Friday’s deadline. The unions aren't allowed to strike before Friday under the federal law that governs railroad contract talks.
Government officials and a variety of businesses are bracing for the possibility of a nationwide rail strike that would paralyze shipments of everything from crude and clothing to cars, a potential calamity for businesses that have struggled for more than two years due to COVID-19 related supply chain breakdowns.
There are 12 unions — one with two separate divisions — that must agree to the tentative deals. So far, nine had agreed to tentative deals and three others are still at the bargaining table. IAM members were the first to reject their deal while other votes are expected Wednesday.
The tentative deals are based on the recommendations of a Presidential Emergency Board Joe Biden appointed this summer that called for 24% raises and $5,000 in bonuses in a five-year deal that’s retroactive to 2020. The deal also includes one additional paid leave day a year and higher health insurance costs.
The key unions that represent the conductors and engineers who drive trains are holding out in the hope that railroads will agree to go beyond those recommendations and address some of their concerns about unpredictable schedules and strict attendance policies that they say make it difficult to take any time off.
Contract talks continued Wednesday with Labor Secretary Marty Walsh participating to put pressure on both sides to reach a deal before Friday's deadline.
“All parties need to stay at the table, bargain in good faith to resolve outstanding issues, and come to an agreement," White House Press Secretary Karine Jean-Pierre said. "A shutdown of our freight system is an unacceptable outcome for our economy and the American people, and all parties must work to avoid just that.”
If the two sides can't agree, Congress could step in to block a strike and impose terms on the railroads and unions, but it wasn't clear Wednesday how quickly they could or would act because Democrats and Republicans may not be able to readily agree on a solution. A number of business groups have written letters to lawmakers over the past week urging them to be prepared to step in because of their concerns that a rail strike would be what the Business Roundtable called an “economic catastrophe."
The many businesses that rely on railroads to deliver their raw materials and finished products say a rail strike would cause significant problems particularly for oil refineries, chemical businesses, auto makers, retailers and agricultural groups. The Association of American Railroads trade group estimated that a strike would cost the economy more than $2 billion a day.
Businesses would likely try to turn to trucks and other modes of shipping if the railroads do shut down, but there isn't enough trucking capacity to take up all the slack. The railroad trade group estimated that 467,000 additional trucks a day would be required to deliver everything railroads handle now.
A freight rail strike would also disrupt passenger traffic because Amtrak and many commuter railroads operate on tracks owned by the freight railroads. Amtrak has already cancelled a number of its long-distance trains this week.


More from News 12
1:40
Lithium-ion battery fire blamed for closure of Newburgh tailor shop

Lithium-ion battery fire blamed for closure of Newburgh tailor shop

1:56
Sun skies and warm temps for Saturday in the Hudson Valley

Sun skies and warm temps for Saturday in the Hudson Valley

0:38
Multimillion-dollar transformation on the way for sections of Hudson Valley

Multimillion-dollar transformation on the way for sections of Hudson Valley

0:32
Veteran firefighter who suffered stroke receives warm welcome home

Veteran firefighter who suffered stroke receives warm welcome home

0:17
Yorktown police sergeant celebrates final walkout following 2 decades of service

Yorktown police sergeant celebrates final walkout following 2 decades of service

0:52
Slate Hill family of 5 loses home in afternoon blaze

Slate Hill family of 5 loses home in afternoon blaze

0:37
2 people charged in Middletown narcotics; firearms bust

2 people charged in Middletown narcotics; firearms bust

1:30
Motorcycle, van crash in Greenburgh causes serious injuries

Motorcycle, van crash in Greenburgh causes serious injuries

0:56
News 12 probes mystery cloud traced to Orange County & seen throughout tri-state area

News 12 probes mystery cloud traced to Orange County & seen throughout tri-state area

1:02
Hillcrest Fire Department receives 2,000 cans of drinking water, courtesy of Anheuser-Busch

Hillcrest Fire Department receives 2,000 cans of drinking water, courtesy of Anheuser-Busch

1:37
Storm Watch Team Meteorologist Skyler Harman strikes down lightning myths

Storm Watch Team Meteorologist Skyler Harman strikes down lightning myths

2:33
Can swimming become dangerous due to extremely high water surface temperatures?

Can swimming become dangerous due to extremely high water surface temperatures?

0:32
NYC officials: Westchester caseworker’s death ruled a homicide

NYC officials: Westchester caseworker’s death ruled a homicide

0:40
State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

State, federal lawmakers introduce legislation to shorten funding gap for World Trade Center Health Program

0:34
Ex Frito-Lay employee files defamation lawsuit against PepsiCo claiming he invented ‘Flamin’ Hot Cheetos

Ex Frito-Lay employee files defamation lawsuit against PepsiCo claiming he invented ‘Flamin’ Hot Cheetos

0:40
Executive orders still in place preventing Rockland County and Orange County hotels from converting into migrant shelters

Executive orders still in place preventing Rockland County and Orange County hotels from converting into migrant shelters

0:54
Headlines: Drug ring prison sentence, Newburgh felony charge, uptick in car thefts in Briarcliff Manor

Headlines: Drug ring prison sentence, Newburgh felony charge, uptick in car thefts in Briarcliff Manor

0:20
Man sentence to 10 years in prison for running Orange County drug ring

Man sentence to 10 years in prison for running Orange County drug ring

1:18
Town of Wallkill propose noise ordinances at Orange County fairgrounds

Town of Wallkill propose noise ordinances at Orange County fairgrounds

0:34
Finger in salad lawsuit against Chop’t discontinued

Finger in salad lawsuit against Chop’t discontinued