Prospect of US rail strike pushed to 9 December

Market: Agriculture, Biofuels, Chemicals, Coal, Crude oil, Fertilizers, Metals, Oil products, Petrochemicals
09/11/22

Fears of a US railroad workers' strike as soon as 19 November have eased now that one labor union has agreed to wait until at least 9 December before acting.

The Brotherhood of Maintenance of Way Employes Division-International Brotherhood of Teamsters (BMWED) said today it will remain open to negotiating with major US railroads, maintaining the so-called cooling off period until midnight on 8 December.

The railroad would be free to strike on 9 December, the same day as the Brotherhood of Railroad Signalmen (BRS). At that point, the ratification vote deadlines scheduled at three other unions would have passed.

Members of BMWED and BRS had previously voted down proposed labor contracts but agreed to continue negotiations. If any of five undecided unions decide to strike, the other labor organizations have agreed to follow suit even if their members have approved a new contract.

Extending the deadline will "improve our chances of not having Congress intervene on the railroads behalf and, instead, allow us to strike if necessary," BMWED said.

The union pointed to a resolution by US senators that would require railroads and unions to adopt the recommendations of a presidential emergency board if talks fail. The panel appointed by President Joe Biden in August released a series of recommendations for a new labor contract. NCCC has been pushing for unions to accept these terms and the seven contracts ratified were based on these recommendations, which include a 22pc raise over five years, the biggest in 47 years.

And since there is no other bill in Congress at this time that would allow the union to strike, "we will now have an opportunity to educate Congress and obtain a better bill written for railroad workers, not the railroads," BMWED said.

"This extension eliminates the threat of a near-term freight rail service disruption," said the National Carriers' Conference Committee (NCCC), which represents freight rail carriers in collective bargaining.

The two largest rail unions — the International Association of Sheet Metal, Air, Rail & Transportation Workers-Transportation Division (SMART-TD) and the Brotherhood of Locomotive Engineers & Trainmen (BLET) — are expected to complete their voting on 21 November. Another union, the International Brotherhood of Boilermakers, Iron Ship Builders, Forgers & Helpers, will vote on 14 November.

By Abby Caplan

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