National rail labor strike possible July 18 unless President Joe Biden intervenes

Railroad freight traffic across the United States could come to a screeching halt July 18 if progress isn’t made on a labor contract between national rail carriers and their unions.

Union officials stressed they do not want to go on strike, but argued they are being forced to consider the option in a bid to get better benefits, wages and staffing.

The unions have worked without a contract since July 1, 2019.

The two sides were forced into a 30-day “cooling off period” after failing to reach an agreement working through the National Mediation Board. The cooling off period prevents unions from striking or railroads from locking out their workers while they continue to negotiate.

That cooling off period ends at midnight on July 18, and a coalition of unions could choose to go on strike at that point, said Sheet Metal Air Rail Transportation union president Jeremy Ferguson.

However, the Railway Labor Act, which sets out the rules for these kinds of disputes, allows President Joe Biden to appoint a three-member emergency board to investigate and make recommendations to both sides about how to settle their differences.

The union is not allowed to strike during the Presidential Emergency Board’s investigation.

The main issues are wages and benefits.

Railroads have proposed a 16% pay raise over a five year period according to a letter from from Ferguson.

However, the unions are pushing for 36%, which Ferguson said in a phone call Friday accounts for inflation, productivity increases, and increased demand for shipping over the past three years.

He referenced a recent plan by American Airlines to give its pilots a 17% pay increase over two years and Walmart offering over $100,000 salaries to recruit truck drivers for context.

Railroaders do get paid well, but that is because they work so many hours, said Chris Bond, a Fort Worth-based union official and rail engineer for BNSF.

Bond said his regular run from Fort Worth to Oklahoma City takes about 12 hours. He is then usually forced to spend 12 to 16 hours in a hotel unpaid until he can catch another train run back to Fort Worth.

“We’re away from our families. We’re away from everybody,” Bond said.

The National Rail Labor Conference, the group negotiating on behalf of national rail carries like Fort Worth-based BNSF, argued in a blog post that the unions are using, “the unsupported notion that pay rates must be linked to and exceed the percentage increase in the highest available consumer inflationary measure.”

It argued pay should be determined by, “benchmarks in the relevant labor market.”

The parties are also far apart on health benefits.

Ferguson said rail carriers are trying to get their workers to contribute more money out of their paychecks for their heath plans.

The trade group blog post claims most railroad workers have healthcare costs below the national average.

The average American paid around $12,530 for healthcare in 2020 according to the U.S. Centers for Medicare and Medicaid Services.

Bond also raised an issue with a plan by national rail carriers to reduce the number of workers on trains.

Right now, each freight train is staffed by a conductor and an engineer. The engineer runs the motor that pushes the cargo, and the conductor acts as their eyes and ears communicating about track conditions and obstacles that may force the train to slow or stop.

Rail carriers have proposed doing away with the conductor position, arguing that new technology will allow the engineer to monitor and move a three-mile train by themselves.

Bond pushed back and said the increased length of trains forces engineers to monitor multiple engines remotely, which makes it difficult to spot poor track conditions or obstacles blocking the way.

The trade group blog page said it plans to “redeploy” conductors to “ground based positions” along rail routes where they can be used to assist in an emergency.

It argued this move is needed to increase efficiency and give conductors better quality of life by anchoring them to specific locations and regions.

Bonds said it is a safety issue, and argued rail carriers are trying to do more with less to cut down on labor costs and boost profitability.