Four freight rail unions with almost 60,000 workers combined have rejected a five-year contract related to workers' benefits and compensation brokered by the Biden administration and two prominent unions and have threatened to striker, reports NPR. Eight other unions have ratified the deal; however, they may continue to participate in the dispute.
Approximately 30 percent of all freight moves by rail across the U.S. A strike of this magnitude would likely have a profound impact on the supply chain, affecting the transportation of food in addition to all other commodities. The Association of American Railroads estimates a rail shutdown could cost $2 billion a day in lost economic output.
The contract came after a disagreement between two rail units, SMART Transportation Division and the Brotherhood of Locomotive Engineers and Trainmen, who came to Washington to try and resolve their issues. Together with the Biden administration, a deal was made to give workers a 24 percent raise over five years, in addition to other benefits. Despite the agreed package, the unions still had to vote on it, and many opposed it.
"SMART-TD members with their votes have spoken, it's now back to the bargaining table for our operating craft members," said SMART-TD president Jeremy Ferguson in a statement. "This can all be settled through negotiations and without a strike. A settlement would be in the best interests of the workers, the railroads, shippers, and the American people."
If no agreement is reached by December 8, the railroads could lock workers out or workers could go on strike, according to the report. Full Story
Related: Ecommerce Sales On the Rise; Retail Sales Grow as Holidays Near