Second Union Votes Against Freight Rail Contract, Raising Strike Prospects
There was more bad news last week in the effort to avoid a national freight rail strike in the United States. Due to lingering concerns about sick leave policy, on October 26 the Brotherhood of Railroad Signalmen (BRS) voted against ratifying the tentative deal agreed to in September between the U.S. Class I railroads and the 12 unions that comprise the rail workforce.
That deal had temporarily avoided a nationwide strike that would have paralyzed freight rail shipments.
The BRS represents about six percent of workers in the 12-union coalition involved in negotiations. Its move comes a few weeks after members of the Brotherhood of Maintenance Way Employees Division of the International Brotherhood of Teamsters also declined to ratify the agreement.
Twelve unions must agree to the terms of the deal by November 19, 2022 to avoid the potential of a strike. If they do not, the metal and manufacturing industries should anticipate rail service disruptions for select products and materials. While six of the 12 have agreed to the deal, last week’s vote increases the possibility of a national freight rail strike before the end of the year.
The freight rail industry is responsible for moving approximately 40 percent of long-haul goods. According to the National Association of Manufacturers, these votes could begin affecting operations around November 12 depending on the product and the rail carrier.
Should a strike occur, or appear imminent, lawmakers in the U.S. House and Senate are empowered to codify a labor agreement between the two parties.
Stay tuned to Connecting the Dots as this issue unfolds and as federal lawmakers determine how to proceed.
Industrial metals companies also can keep an eye upcoming union votes at the NRLC’s Bargaining Status FAQ website, which will regularly update with news of ratification votes and with additional details about the negotiated contract terms. Again, while there is no impending strike, work stoppage by any of the rail unions is likely to cause a nationwide rail shutdown.