Two months ago, America narrowly avoided a U.S. rail worker strike that could have brought supply chains to a standstill and crippled the economy. Now, that option is back on the table.
In September, four unions representing around 60,000 rail employees reached a tentative agreement with rail companies—with the assistance of the Biden administration—that averted a nationwide strike. But last week, the Brotherhood of Railroad Signalmen (BRS), a rail worker union, voted against ratifying that agreement. Over 60% of the union’s rank and file members voted against it, with the lack of paid sick days being the main sticking point.
“For the first time that I can remember, the BRS members voted not to ratify a National Agreement, and with the highest participation rate in BRS history,” Michael Baldwin, the group’s president, wrote in a statement on Oct. 26.
The BRS is not alone in being unsatisfied with September’s tentative agreement. They join the Brotherhood of Maintenance of Way Employes Division (BMWED)—the third largest rail union in the country—which also voted against the agreement on Oct. 10.
The two unions are still negotiating with railroad companies over a resolution, but time is running out. Without government intervention, rail workers could in theory begin striking if a deal isn’t reached by Nov. 19, a spokesperson for the BMWED told Fortune.
If it does come to a strike, it could have big implications for the U.S. economy. The averted September strike could have cost the country as much as $2 billion a day in supply chain disruptions that would aggravate soaring inflation, according to a study by the Association of American Railroads (AAR), and experts tell Fortune a strike now would have a similar if not greater impact, given the upcoming holiday season.
A strike just ahead of Thanksgiving, and the beginning of the busiest shipping season for retailers, could derail the “main artery” of the U.S. economy, Daraius Irani, chief economist at Towson University’s Regional Economic Studies Institute and railroad economics expert, told Fortune. It could even provide kindling to the smoldering fire of the U.S. recession many economists predict is on the way.
“We’re already facing a supply chain crisis, and now with this on top of it, it could just be a fast accelerant towards a recession,” Irani said. “This would be one of those things that push the economy towards an inflationary recession.”
Congress does have the power to step in and order rail workers not to strike for a certain period of time, but the White House has signaled that unions and companies should be the ones to come to an agreement, and that government intervention may not lead to a permanent resolution to the problem.
The unions and rail companies will return to the bargaining table next week to attempt another deal.
Wow they’re so selfish. They didn’t think about how their strikes would affect my holidays.
FUCKIN DO IT
By the way the threat of a "recession" is a threat by the companies, they could simply avoid the strike by fulfilling the demands.
2 billion a day
just pay the sick leave bro. Are the :capitalist-laugh: this fucking stupid?
Yes, they are stupid and greedy as well as sociopath. Short term quarter gains for the win even if they crash an economy!
They're not stupid. They're just thinking long-term. The last thing they want is for labour to win a victory that could inspire more militancy. Better to take a few days of strike, run a billion stories about evil greedy unions destroying the economy, jobs and Christmas, and then have the government crush the strike, demonstrating to labour how powerful capital is and how futile resistance is.
That 2 billion figure has got to be an underestimate; for a first and singular day I could believe it being that low but each subsequent day has got to have a compounding effect
So are the separate rail unions on purpose or have they chosen not to consolidate into a larger more powerful union (or is it illegal)?
Keeping in mind that there could be very special rules for these particular unions, generally speaking it is very risky to associate with a different union international in the US.
You have to file a petition to do so, and once you've done that, you'll be essentially re-running your original unionization campaign again: the employees will be given the choice of staying with the current union, forming a new one with the other international, or dissolving the union entirely. Upon switching, you will have to renegotiate a new contract.
Death to America.
The point of most of these laws is fear. If enough of the 60k fear the consequences they won’t do it.
Yeah I’m not too knowledgeable on unions, but I find the laws surrounding it the equivalent of getting a permit to protest the government lol
It's generally easier to work withing those confines until you're truly organized and ready to pick that fight, whether it's a protest or a militant union action.
Well, for one, a big chunk of your dues tends to go to the international and most other ones aren't going to want to spend their own members' dues providing the equivalent of 1/3 of your total dues to help support you.
So at that point, why would you associate with a different one? You're still stuck with the shitty leadership you're presumably trying to get away from, you're still giving them piles of cash, and you're not getting the benefits of associating with a different one.
I mentioned before as well that the union I work with is not allowed to re-affiliated with a new national org, but is required to dissolve itself and then re-unionize if they wish to do so 1 year later. I assume this is a common practice in many industries but I don't know the specifics.
Oh wow, that sucks. I'd ask for more info but I don't want to accidentally doxx you / practice bad infosec.
I know that AFL-CIO unions make this kind of thing extra difficult.
The specifics aren't too important I don't think, and yeah I believe they are part of AFL/CIO, but I'm not a member myself.
The US government put a ton of work into making sure that unions have to compete against each other and that bargaining units are as small as possible. The legal framework for Labor in the US is designed for us to fail.
Where's Pete? I DEMAND PETE! He's the TRANSPORTATION SECRETARY, he should stop being a RAT and FIX THIS!!!
The bourgeoisie will amputate the supply chain before giving workers vacation days
Semi-related, I went for a bike ride today :sicko-biker: and stopped at a large gas station to grab a drink. I hadn't been inside a gas station in a few years at this point and I was shocked to see how much of the shelves were just empty. My guess is only about 25% of the drink shelves were stocked. I rarely ever saw a single empty rack for even one drink type at this same gas station pre-COVID. On top of that, grocery stores still have rolling product outages, there's a shortage on diesel, and there's a CO2 shortage so drink machines are constantly going down all over the city I live in.
I know it's just treats, but it feels like the situation isn't improving, only getting worse. Combine that with housing and food prices rising and it feels like we're speeding into the Cool Zone™.
You sure you didn't just step into one of those bodegas from half baked?
Well maybe a 50 pound bag of beans is paranoid and maybe it isn't. Those 32 packs of toilet paper aren't going to go to waste however long they last...
Yeah Ive been habitually just grabbing extra dry goods when I go shopping for a bit now, seems prudent.
