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Rail union representing 6,000 U.S. workers votes down labor deal

Published 10/26/2022, 03:15 PM
Updated 10/26/2022, 04:20 PM
© Reuters.

By David Shepardson

WASHINGTON (Reuters) - The Brotherhood of Railroad Signalmen (BRS) union, representing more than 6,000 members, said on Wednesday that workers voted against ratifying a national tentative agreement reached in mid-September, the second union not to approve the deal.

Previously six of 12 unions voted to approve the deal. The National Carriers’ Conference Committee (NCCC), which representing freight railroads in labor talks, said Wednesday it was disappointed in the BRS vote, but both sides have agreed to maintain the status quo until early December.

The Brotherhood of Maintenance of Way Employees (BMWED), which represents more 11,000 workers, had already rejected the deal.

BMWED President Tony Cardwell said Wednesday members offered "numerous reasons they voted against the agreement, but the common thread was the lack of paid sick days." It proposed "members be provided a basic package of sick days."

NCCC said labor employees do get sick time but railroads and unions, including BMWED, "have repeatedly agreed that short-term absences would be unpaid in favor of higher compensation for days worked and more generous sickness benefits for longer absences."

The rail deal included a 24% percent wage increase over a five-year period from 2020 through 2024 as well $1,000 lump sum payments in each of the next five years.

About 60% of BRS members voting declined to approve the deal. BRS President Michael Baldwin said the railroads and PEB "both failed to recognize the safety-sensitive and highly stressful job BRS members perform each day to keep the railroad running and supply chain flowing."

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The unions representing 115,000 workers at railroads including Union Pacific (NYSE:UNP), BNSF, CSX (NASDAQ:CSX), Norfolk Southern (NYSE:NSC) and Kansas City Southern (NYSE:KSU).

A rail shutdown could have frozen almost 30% of U.S. cargo shipments by weight, stoked inflation, cost the American economy as much as $2 billion per day and unleashed a cascade of transport woes affecting U.S. energy, agriculture, manufacturing, healthcare and retail sectors.

The delayed deal in September prompted passenger railroad Amtrak to cancel long-distance trains in anticipation of a work stoppage.

Latest comments

So there is still a possibility of a black swan event in the form of a railroad shutdown.
bandits
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