(Omaha) U.S. consumers could face higher gas prices and shortages of some of their favorite grocery items over the holiday season if railroads and their unions fail to agree on new employment contracts before the beginning of December.
The likelihood of a strike that could cripple U.S. railroad traffic rose on Monday when the largest of 12 railroad unions, which mainly represents conductors, rejected the latest employer offer that included 24% wage increases . With four of the 12 unions waiting for a better deal, it may fall to the US Congress to impose one in order to protect the country’s economy.
The Retail Industry Leaders Association said a railroad strike would “cause huge disruption to the flow of goods nationwide”, despite retail stores being well stocked for the holiday season.
It’s unclear what a strike would mean for packages, as Fedex and UPS, both of which depend on the railroad to some degree, did not comment in detail.
“Fortunately, this year’s holiday gifts are already on store shelves. But a rail disruption poses a significant challenge to the on-time delivery of items like perishable groceries and online shopping, and it will no doubt add to the inflationary pressures that are already plaguing the U.S. economy,” Jess explained. Dankert, vice-president of the group which represents more than 200 major retailers.
Even getting closer to the deadline could cause problems, as the railways will freeze shipments of chemicals and perishables in advance. And travelers could be stranded in the event of a strike, as several passenger train companies operate on tracks owned by freight companies.
Almost any industry could be affected, as many of them rely on railways to deliver their raw materials and finished goods. And there are not enough trucks to take over.
There is no immediate strike threat even though four unions have rejected deals the Biden administration helped broker before the original strike deadline last September. These unions have agreed to return to the bargaining table to try to reach a new agreement before the new strike deadline of December 5. But those talks have stalled as management refuses to consider adding paid sick leave to their proposed five-year collective agreements, which include 24% raises and $5,000 bonuses. .
Railway engineers voted on Monday to join seven smaller unions in approving the proposed contract, but the largest union that represents conductors rejected the offer, joining three other unions that had previously voted “no”.
It seems increasingly likely that Congress will have to settle the dispute. Lawmakers have the power to impose contract terms if the two sides cannot reach an agreement, and hundreds of business groups have urged Congress and President Joe Biden to stand ready to intervene.
Workers frustrated with demanding schedules and significant job cuts in the industry rejected these contracts because they would not do enough to address workers’ top quality of life concerns. The agreements for engineers and conductors included a promise to try to improve the scheduling of regular days off and to further negotiate the details of these schedules at each railway.
These two unions also received three unpaid days off a year to meet medical needs, provided they were scheduled at least 30 days in advance, and managements said they would not penalize workers. hospitalized under their strict attendance policies.
The railways also lost their offer to reduce crew sizes to one person as part of the negotiations. But conductors in the transport division of the International Association of Sheet Metal, Air, Rail and Transport Workers (SMART) still narrowly rejected the deal at around 51%. A smaller division of the SMART-TD union which represents about 1,300 yardmasters endorsed the deal.
“The ball is now in the railways’ court. Let’s see what they do. They can work this out at the bargaining table, said SMART-TD President Jeremy Ferguson. However, railroad executives who constantly complain about interference from government, regulators and Congress now want Congress to do the negotiating for them. »
The railroads argue that agreements with unions should closely follow recommendations made this summer by a special panel of arbitrators appointed by President Biden. That’s part of the reason they don’t want to offer paid sick leave. Additionally, the railroads say unions have agreed over the years to forego paid sick leave in favor of higher pay and strong short-term disability benefits.
The unions argue for their part that it is high time for the railways to offer paid sick leave and that the pandemic has highlighted the need for it.
The group that bargains on behalf of the railways said on Monday that unions that rejected their agreements should not expect to receive more than the arbitrators on the presidential emergency board have recommended.