President Bidenasked Congress to intervene in a labor dispute between rail workers and their employers, hoping to quell an impending strike with the potential to upend the American economy.Wednesday afternoon, they obliged, with the House overwhelmingly passing legislation tohelp avert the labor dispute from escalating.
SMART Transportation Division, SMART-TD for short, a union representing conductors in the rail industry has rejected a deal brokered by the Biden Administration, upending the White House's efforts to avoid a strike before the holidays. With 51% of SMART-TD's members voting in opposition of the deal, the workers are poised to either strike, or be locked out by rail companies on Dec. 9.
The original tentative deal, reached in September, helped quell awidespread economic crisis as members of 12 unions representing rail workers across the country threatened to strike. Since then, threeunions involved in negotiations -- now four with SMART-TD -- have rejected the deal.
The dispute escalated after almost three years of contract negotiations proved unfruitful, and railroad workers moved toward a strike over unmet demands for higher pay and better working conditions.
A potential strikecould have devastating effects on the nation's supply chain and economic health. Much of the country's goods still travel by freight train.Ahead of the holiday season, a halting in the shipment offood products, and other critical goods could debilitate the economy.
Here's what you need to know about the railroad contract negotiations, what the railroad unions are asking for, and what the railway companies have agreed to.
Congress intervenes in rail strike:House passes legislation to avert 'catastrophic' rail strike; Senate to take up measure
What is the railroad strike of 2022?Why rail workers are striking and what it means for you
Why are rail unions planning to strike?
The rail unions are headed toward a strikeover pay and ongoing grievances from members that the working conditions are grueling, and not conducive to a life off the job.
The schedules are of particular concern with rail workers citing a lack of sick leave, inability to routinely visit the doctoror tend to family emergencies, and weekslong stretches of being on call.
After years of contract negotiations, a united front of 12 railway unions threatened to strike over unmet demands, calling national attention to the disputeand kicking the White House into high gear. Since then the Biden Administration and the unions worked to broker a tentative deal, which eventually fell apart with four unions rejecting the terms. The President has now asked congress to intervene in hopes they can help stave off a strike with the potential to upend the American economy just in time for the holiday season.
What are the railroad unions asking for?
The railroad unions are asking freight and railway companies for a pay increase, as well as better working conditions, including paid time off and a more flexible schedule.
The railroad contract negotiations, which have been taking place between the railway unions and their major employers for almost three years, have involved heated debate over an attendance policy that union members says is oppressive.Unions have threatened to strike over members' inability to take time off for medical visits and family emergencies without fear of punishment.
Some companies had introduced unpopular points-based attendance systems as well, an unwelcome move among union members, who were already stretched thin because of the coronavirus pandemicand working on an on-call schedule.
In the tentative agreementreached early Thursday morningand announced by the White House, railroad unions were grantedwage increases, bonusesand no increases to insurance copays and deductibles.
What is the Railway Labor Act of 1926?
The Railway Labor Act, enacted in 1926 and amended in 1934 and again 1966 gives Congress the power to step in and impose a contract on both the unions and the railway companies.
It provides dispute resolutionguidelines aimed at coaxing one or both sides to reach an agreement and avert a national shutdown. Congress can either extend the "cooling-off period" -- allowing both sides more time to negotiate, implement the terms of an unratified agreement, or act on the recommendations of the Presidential Emergency Board.
How much do rail workers make?
There is no standard set salary as compensation may vary based on position and employer.
As part of ongoing negotiations,rail unions are asking in part for better pay for their members.
The tentative agreement reached in September had included a24% compounded wage increase over five years, starting in 2020 and running through 2024. It also accounted for five annual $1,000 lump sum payments, Reuters reports.
What union represents railroad workers?
There is no one union.
Rail workers belong to a number of unions. All of them have been working together to push company management to acceptworkplace improvements,including higher pay and conditions that better facilitate work-life balance.
How many railroad unions are there?
Twelve railroad unions form the coalition for National Freight Rail Bargaining. The coalition is able to use combined power to push for employees' demands.
The unions are:
- International Association of Sheet Metal, Air, Rail and Transportation Workers - Transportation Div. including Yardmasters (SMART-TD & SMART-TD-YDM)
- Brotherhood of Locomotive Engineers & Trainmen (BLET)
- Brotherhood Railway Carmen (BRC)
- Brotherhood of Railroad Signalmen (BRS)
- International Association of Machinists and Aerospace Workers (IAM)
- International Brotherhood of Electrical Workers (IBEW)
- Transportation Communications International Union (TCU)
- National Conference of Firemen and Oilers (NCFO)
- American Train Dispatchers Association (ATDA)
- International Brotherhood of Boilermakers, Blacksmiths, Iron Ship Builders, Forgers and Helpers (IBB)
- Brotherhood of Maintenance of Way Employees (BMWED)
- International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-MECHANICAL DIV.)
When was the last railroad strike?
The railroad industry has not seen a strike since 1992, when members of theInternational Association of Machinists union did not show up for work over a dispute with their employer.
The effects of the strike were immediate asa large swath of the country's freight railways ground to a stop.Congress intervened just three days later tobrokera new contract.
The immediate and all-encompassing effects of a rail strike are an issue of such national importance that Marty Walsh, Biden's secretary of labor,stepped in to help rail workers reach a tentative agreement.
The Great Railroad Strike of 1877
Though there have been rail strikes as recently as the '90s, America's most infamous railroad labor actionhappened more than a century ago in 1877, when rail workers walked off the job across the country.
Dubbed the "Great Railroad Strike of 1877," the strike followed an announcement by theBaltimore and Ohio (B&O) Railroad that it would cut wages, the company's second such announcement in less than a year.
In that strike, workers allegedly destroyed railroad company property and interrupted service. In response to the strike, the governor of Marylandcalled on federal troops and local militias to intervene.
Why is Amtrak canceling trains?
Amtrak, a popular commuter railroad company with lines running across the country,canceled all long-distance trains amid fears of an impending strike in September. Service has since resumed.
Why would Amtrak cancel trips if its workers weren't on strike?
Despite not being directly involved in the dispute, Amtrak trains runalmost totally ontracks that aremaintained and operated in part by freight railroad companies.
As an expert deeply immersed in the intricacies of labor disputes, particularly within the railroad industry, I can attest to the significance of the recent developments surrounding President Biden's call for congressional intervention in the labor dispute between rail workers and their employers. My expertise in this matter stems from an in-depth understanding of the historical context, legislative frameworks, and the complex dynamics between unions and railway companies.
Let's break down the key concepts and provide insights into the various aspects mentioned in the article:
1. Background and Context:
President Biden requested Congress to intervene in a labor dispute between rail workers and their employers to prevent a potentially catastrophic strike. The House passed legislation to avert the strike, highlighting the urgency of the situation.
2. Union Involvement - SMART Transportation Division (SMART-TD):
- Union Rejection: SMART-TD, representing conductors in the rail industry, rejected a deal brokered by the Biden Administration, leading to the possibility of a strike.
- Voting Outcome: 51% of SMART-TD's members opposed the deal, paving the way for a potential strike or lockout by rail companies.
3. Initial Agreement and Subsequent Rejections:
- Tentative Deal (September): An initial deal reached in September helped alleviate the threat of a widespread economic crisis, involving 12 unions representing rail workers.
- Rejections: Over time, four unions, including SMART-TD, rejected the terms, leading to an escalation of the dispute.
4. Issues at Stake - Workers' Demands:
- Pay and Working Conditions: Rail unions are pushing for higher pay and improved working conditions, citing grueling schedules, lack of sick leave, and on-call demands.
- Negotiations Duration: The dispute arose after nearly three years of unsuccessful contract negotiations.
5. Potential Economic Impact:
- Supply Chain Disruption: A rail strike could have devastating effects on the nation's supply chain, particularly impacting the shipment of food products and critical goods.
- Economic Health Concerns: The timing, just before the holiday season, raises concerns about the potential impact on the overall economy.
6. Congressional Intervention and Legislation:
- Railway Labor Act of 1926: Enacted in 1926, amended in 1934 and 1966, this act grants Congress the authority to intervene and impose contracts on both unions and railway companies.
- Legislation Passage: The House passed legislation to avert a "catastrophic" rail strike, showcasing the role of Congress in resolving such disputes.
7. Union Coalition and Demands:
- Railroad Unions: Twelve unions form the coalition for National Freight Rail Bargaining, working together to push for workplace improvements.
- Demands: Unions seek better pay, improved conditions, and a more favorable work-life balance.
8. Historical Context - Previous Strikes:
- Last Railroad Strike (1992): The industry has not seen a strike since 1992, emphasizing the rarity of such events.
- Great Railroad Strike of 1877: An infamous strike in 1877, marked by workers walking off the job in response to wage cuts by the Baltimore and Ohio Railroad.
9. Amtrak's Involvement:
- Amtrak's Response: Amtrak canceled long-distance trains amid fears of a strike, despite not being directly involved in the dispute.
- Dependency on Freight Railways: Amtrak's reliance on tracks maintained and operated by freight railroad companies explains its preemptive measures.
In conclusion, the intricacies of this railroad labor dispute highlight the delicate balance between the demands of workers and the operational needs of the railway industry, with Congress playing a pivotal role in averting potential crises.
