Where Do Things Stand On A Potential Rail Strike?

As Connecting the Dots reminded readers last week, last month discussions between the U.S. Class I railroads, represented by the National Railway Labor Conference (NRLC), and the labor unions representing the rail workforce, came perilously close to resulting in a national freight rail strike.

While a last-minute deal was struck between labor leadership and the NRLC, rank-and-file members of each union must now ratify that agreement before the process is complete. Unfortunately, last week one labor union, the Brotherhood of Maintenance of Way Employees Division of the Teamsters Union (BMWED), voted to reject a tentative contract amending wages, benefits, and work rules.

In a statement, the group that represents the freight companies in the bargaining, the National Carriers’ Conference Committee, said they were “disappointed,” but noted that for now, nothing changes. “The failed ratification does not present risk of an immediate service disruption,” it said.

Still, the rejection raises the prospect once again of a nationwide rail strike once again.

The BMWED is the third-largest freight rail union in the United States. While the BMWED wields significant power, this union appears to be an outlier when it comes to ratification — at least so far. Five of 12 rail unions have already ratified the agreement. Additional votes are scheduled to continue through Nov. 17.

Industrial metals companies can keep an eye those 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.

While there is no impending strike, work stoppage by any of the rail unions likely would cause a nationwide rail shutdown.