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 The country sighed a
collective sigh of relieve when the impending strike that was
supposed to occur on September 23rd was suspended due to
intervention at the white house. However, it was not a permanent fix
for the issues. This month several of the unions went back into
negotiations.
There are a total of 12 railroad unions that together represent
about 115,000 employees. Six of the 12 unions have ratified their
agreements. Five have ratification motions pending to take place in
late October and early to mid-November. The 12th has made no motion
to ratify and is “maintaining status quo.” All 12 must ratify their
contracts to avert a strike.
So what are the issues? While more money is always going to be a
talking point, the Brotherhood of Maintenance of Way Employees
Division that have rejected the latest offers are looking for more
than just money. They are saying that the Railroad doesn’t do enough
to make for good working conditions for employees and are
shortchanging workers on paid time off.
Taken from
BARGAINING STATUS FAQ – OCTOBER 2022 - NRLC (raillaborfacts.org):
Q: What is in the new agreements?
A: All of the new agreements increase
wages by 24 percent during the five-year period from 2020 through
2024, with a 14.1 wage percent increase effective immediately. The
agreements also include five $1,000 annual lump sum payments,
adjustments to health care premiums, and health benefit
enhancements, and an additional personal leave day for all
employees. A portion of the wage increases and lump sum payments are
retroactive, resulting in more than $11,000 on average in immediate
payouts to employees.
The wage increases in the new agreements are the most substantial in
decades – with average rail worker wages reaching about $110,000 per
year by the end of the agreement. When health care, retirement, and
other benefits are considered, the value of rail employees’ total
compensation package, which already ranks among the highest in the
nation, would average about $160,000 per year.
The agreements also include craft-specific rules for operating craft
and maintenance of way employees.
Q: What are the adjustments to health care premiums?
A: Commencing in 2023, health care
premiums will once again be 15 percent of the carriers’ total
monthly payment rate – as they were years ago – meaning that the
carriers will pay 85 percent of the health care costs incurred by
the plan and employees will pay the remaining 15 percent.
Starting in 2025, when the national agreement is amendable, employee
contributions will be capped until new national agreements are
reached.
Q: What are the work rules changes?
A: In addition to the additional
personal leave day for all employees, the operating craft agreements
include provisions addressing several scheduling and related
matters. The agreement with the BMWED, which covers track
maintenance employees, also adjusts travel and away from home
expense reimbursement provisions.
Q: What happens if ratification is unsuccessful?
A: In the event of a failed
ratification, the parties have agreed to maintain the status quo for
a period of time pending any further discussions and assessment of
next steps. As such, a failed ratification does not present risk of
an immediate service disruption.
In early October, White House Press Secretary Karine Jean-Pierre
spoke about the impending strike, playing down the imminent threat
and adding that the White House would be vigilant and stands
prepared to assist in coming to an amicable conclusion for all
parties.
She noted, “These negotiations have gone on for years. This is
nothing new. We've seen this before.”
[to top of second column] |
Indeed, union negotiations in
all labor sectors seem to be an ongoing discussion on a daily basis.
But for the strike to actually occur is much less likely. In the
rail industry the last strike was 30 years ago and there have surely
been numerous negotiations since that time that did not yield a
shutdown of transportation and consequently much of the economy.
But that does not prevent John
Q Public from being concerned and it does not stop the markets from
reacting.
In September the Editorial Board of the Washington Post published
the following opinion:
“Given chronic partisan dysfunction on
Capitol Hill, leaving Congress to resolve the matter was an iffy
bet. Americans, already weary of pandemic-era shortages of baby
formula and countless other products, would be rightly furious at
further supply-chain chaos, which could wreak havoc with the
delivery of consumer goods, agricultural products and even supplies
of chlorine required to treat drinking water. Fears of shortages
sent futures prices soaring for an array of commodities, including
grain, as well as natural gas. It became clear that a freight-rail
strike would strand some transit commuters, including, in the
Washington area.”
“An emergency board President Biden established in July by to avert
a strike proposed pay increases totaling 24 percent for freight-rail
workers over five years ending in 2024. The unions complained that
even such substantial raises were not enough to compensate them for
their workplace conditions. Continuing supply-chain problems and
inflation gave them even more leverage; with weeks to go before
midterm elections, the Biden administration hardly needed more
incentive to avoid a potentially crippling labor action.”
So, is the rail crisis resolved? Short answer – no. What we saw in
September was a temporary fix that got the country through the fall
and farmers through fall harvest. But, for those who are storing
grain with hopes of improved prices later in this year or early next
year, and elevators that are doing the same, the thought of a
shutdown is still a threat to their financial well-being.
The bright side of the coin is that the union workers don’t want to
strike, many have already said they will agree to the contract if
they haven’t done so already, and only one union is holding out. It
will take all 12 unions in agreement to avoid the strike. The one
union holding out may be persuaded to reach a deal for the greater
good of the whole.
[Nila Smith]
Resources
Opinion A rail strike crisis shows how the economy has changed
https://www.usatoday.com/story/
money/2022/10/11/rail-strike-2022
-railroad-workers-update/10465309002/
https://raillaborfacts.org/news/bargaining
-status-faq-2022/
https://www.washingtonpost.com/business
/2022/10/11/railroad-union-rejects-deal/
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