On Monday, the largest of the 12 rail unions in the United States which consists mainly of conductors rejected a proposed labour deal brokered by US President Joe Biden’s administration sparking the possibility of nationwide strikes during the winter holiday season. The deal was once described as a win by Biden while the railroads had called it the most generous contract in modern history.
The largest freight rail union, SMART Transportation Division, representing at least 28,000 conductors, rejected the contract by a narrow margin as 50.8 per cent of workers voted against it. Meanwhile, the second-largest rail union, the Brotherhood of Locomotive Engineers and Trainmen in the country which consists of mostly engineers voted in favour of the deal creating a split among the top rail unions.
Reports suggest that a strike like this could paralyse the nation’s rail traffic impacting not only the economy but also the people. According to the Association of American Railroads, a potential strike could cost the US’ economic output at least two billion dollars each day. Meanwhile, the Retail Industry Leaders Association said that such a strike could result in an “enormous disruption” to the flow of goods across the country.
The proposal in question offers an immediate 14 per cent raise along with back pay dating to 2020 and five-year deals which feature 24 per cent raises as well as a $5000 bonus. Once the deal is ratified it could give the union members an average salary of $11,000 per worker.
On the other hand, the union argues that it fails to deliver any paid sick days especially since they were working through the Covid-19 pandemic. While this deal does allow them to miss work to attend to medical issues, there are some limitations to this provision as well as that time off is unpaid. However, they did praise the deal which lets the union negotiate some regularity in schedules for round-the-clock jobs like engineers and conductors and called it a big win.
There is no immediate threat of strikes despite the rejection of the deal by four unions which account for nearly 60,000 workers who are now returning to the negotiation table. Meanwhile, the union has reportedly set the new strike date as December 5. While they have agreed to negotiate new deals based on the original framework of the President Biden administration’s brokered deal there is not much time left given the deadline.
Notably, in the event of a strike Congress has the power of the Railway Labor Act which enables them to take any steps necessary to get the trains running again, which in this case could include imposing some other version of the contract. But if the strike goes on for a long period of time it can lead to higher prices of goods including food and fuel.
(With inputs from agencies)
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