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Major rail labor unions move closer to strike


Exclusive: A potential rail workers strike could cost the US economy $2 billion a day

Two of the largest rail unions in negotiations with rail carriers have drawn a line: they are demanding more quality-of-life clauses be included in their contracts, including school attendance, leave and sick days policies, otherwise they would go on strike.

The Brotherhood of Locomotive Engineers and Trainers and the Intelligent Transport Division represent half of the railroad union’s workers.

10 out of 12 unions have reached tentative agreements with rail carriers. Sources close to the negotiations told CNBC that they did not negotiate on quality of life. Unions have what are called, “Me too” agreements, which mean any interests that BLT and the SMART union agree to in their contracts with service providers, members, or service providers. members of other unions will receive.

“If this contract is presented to our members in its current form, it will not be approved,” a CNBC spokesperson said. “Employees are angry. They want a change in attendance policy and don’t mind taking sick or leave without fear of termination. There will be no ratification unless this is resolved. “

A spokesman for the rail industry told CNBC they would not comment on ongoing negotiations, but stressed, “Railways are still in active discussions with unions that have not reached a project agreement.” and will continue to work to reach agreements based on the recommendations of PEB.”

In July, President Biden appointed a Presidential Emergency Board in hopes of preventing a strike and make an introduction which rails and the labor union may agree to.

Attendance and personnel policies have been a point of contention over the past two years of these negotiations. More than 700 union workers quit after BNSF, a wholly-owned subsidiary of Berkshire Hathawayestablished a points-based attendance system in February. The system was revised in May but union workers say the amendments do not address the so-called “brutal” safety issues. Labor sources say CNBC employees will be fined if they take a day off to attend their parents’ funeral.

The railway ministry says the new policy is crucial to ensure that it has enough workers for its trains. Rails has faced scrutiny for worse service from unions, shippers and regulators.

A road maintenance worker walks along a newly installed section of track on the Burlington Northern Santa Fe (BNSF) South Transcontinental Railroad (BNSF) line in Alva, Oklahoma, U.S., on Wednesday, Aug. 19, 2015.

Bloomberg | Bloomberg | beautiful pictures

“The railway took on its own labor woes,” said one laborer with knowledge of the negotiations. “They’ve made drastic layoffs to appease shareholders and improve their bottom line. Workers are getting burned out. You’ve heard from the railroads they’re hiring but they’re not holding on. talented people because of the points system you’re calling for 12 hours a day and you have to be an hour or less away from your workplace. They’re being held hostage.”

While the rails say they’ve been hiring aggressively amid supply chain difficulties, the US Surface Transportation Commission has reported the largest freight railroads in the US have reduced their workforce by 29% over the past six years.

About 40% of the nation’s long-distance trade is carried by rail, more than any other form of transport. If the unions went on strike, more than 7,000 trains would be out of service and the rail industry is estimated to costs the economy up to 2 billion dollars per day.

The American Trucking Association wrote letter to Congress calling for action – as did several other industry groups representing sectors including retail and agriculture – and noted that the current truck shortage makes it difficult for the industry to process more goods. chemical.

“Idling all 7,000 daily long-haul freight trains in the US would require more than 460,000 long-haul trucks per day,” said Chris Spear, ATA President and CEO. letter. “As such, any disruption to rail service would create havoc in the supply chain and fuel inflationary pressures across the board.”

Railways start urgent freight measures

Starting today, railroads are securing and managing security sensitive and hazardous goods such as chlorine used by public water authorities to purify drinking water and chemicals used in fertilizers in the event of a strike. Norfolk Southern Release an agitation to the client about the measures.

“We’ve informed our customers that we’ll be suspending certain types of shipments starting September 12. Additionally, to safely downgrade the network and allow us to roll out the service. Service returns quickly, some other customers will see preliminary service cuts before September 16.”

The Association of American Railroads says the carriers are complying with federal regulations.

“The operational changes needed to prepare for a safe, orderly pause have been delayed for as long as possible,” a railroad spokesman wrote in an email to CNBC. With less than a week to go before service disruptions are likely, carriers are obligated to take appropriate actions to prepare, including planning the handling of HAZMAT shipments, as well as Other shipping charges may be affected if service is reduced or discontinued. Notifying customers is an essential part of that contingency plan.”

The spokesman added that the railway does not believe that disruption to national service is inevitable, but it is time for certain customers to start being affected if no agreement is reached. “

A spokesman for the railroad labor union told CNBC, “Railways can’t legally lock us down, so they’re resorting to extortion from shippers. The impact on the supply chain should be. shippers will go to the National Assembly asking for intervention. Congress is not allowed.”

Will Congress intervene?

The last time Congress intervened was in 1992 after a successful union of mechanics CSX New labor contract disputes. Then, US President George Herbert Walker Bush called on Congress to act quickly. President Bush signed the return to work bill after a two-day strike shut down rail freight service across the country.

“The self-appointed giants of this industry are constantly complaining about regulation and government interference – except now when it comes to backing their employees,” said BLT, a company affiliated with the company. Teamsters and SMART Transportation said in a statement. “It’s time for the federal government to tell the CEOs who run the nation’s railroads enough is enough. Congress should stay out of the rail dispute and ask the railroads to do what it doesn’t. other business leaders do – sit down and haggle. contracts your employees will accept.”

CNBC said talks by both the railroad and the labor union will resume on Monday. Unions could go on strike on Friday.



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