A union representing employees who build and maintain tracks said on Monday its members rejected the tentative contract deal with a committee representing major U.S. freight railroads, sparking fears of potential supply chain and inflation ramifications.
The Brotherhood of Maintenance of Way Employes (BMWED), which represents more than 11,000 workers, said the rejection results in a “status quo” period where the union will reengage bargaining with the Class I freight carriers.
The union said the vote “indicates that there is a lot of work to do to establish goodwill and improve the morale that has been broken by the railroads’ executives and Wall Street hedge fund managers”.
“Railroaders are discouraged and upset with working conditions and compensation and hold their employer in low regard. Railroaders do not feel valued,” Union President Tony D. Cardwell said in a statement.
The union rejected the deal due to management’s refusal to give paid time off for family emergencies or sickness.
Last month, President Joe Biden announced that other unions, including those representing thousands of workers, and the National Carriers’ Conference Committee (NCCC) had reached a tentative deal, staving off a costly strike that could have crippled U.S. supply chains.
So far, only four of the 12 unions have ratified the agreement.
Rail parties had agreed to a cooling-off period, a standard part of the ratification process in case a vote fails in order to avert any shutdown, Reuters had reported earlier last month.
Rep. Jim Jordan (R-Ohio ) questioned whether the news meant that a strike was imminent and that gas prices could be adversely affected.
Uh-oh. Joe Biden’s tentative railroad union deal fell apart on Monday.
Strike imminent?
If so, get ready for prices to go even higher.
— Rep. Jim Jordan (@Jim_Jordan) October 11, 2022