Seven other smaller unions have approved the five-year deals that include 24% raises and $5,000 in bonuses. But all 12 must approve the contracts to prevent a strike.
OMAHA, Neb. — Consumers could see higher gas prices and shortages of some of their favorite groceries during the winter holiday season if railroads and all of their unions can’t agree on new contracts The likelihood of a strike that could paralyze the nation’s rail traffic grew on Monday when the largest of the 12 rail unions, which represents mostly conductors, rejected management’s latest offering that included 24% raises.
Even getting close to the deadline could cause problems because railroads will freeze shipments of chemicals and perishable goods ahead of time. And commuters could be stranded if there is a strike because so many passenger railroads operate on tracks owned by the freight railroads. could be affected because so many businesses need railroads to deliver their raw materials and completed products. And there aren’t enough trucks to pick up the slack.
The railroads also lost out on their bid to cut crew sizes down to one person as part of the negotiations. But the conductors in the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers union still narrowly rejected the deal with roughly 51% voting against it. A smaller division of the SMART-TD union that represents about 1,300 yardmasters did approve the deal.
The group that negotiates on behalf of the railroads said Monday that the unions that rejected their deals shouldn’t expect to receive more than the Presidential Emergency Board of arbitrators recommended. The National Carriers Conference Committee said businesses could start to be affected by the threat of a strike even before the deadline because railroads will start curtailing shipments of dangerous chemicals and perishable cargo days ahead of the deadline.
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