Rail Strike Averted Until Dec. 4, Saving U.S. $2 Billion Per Day

NCCC is comprised of five of the U.S. Class I railroads (BNSF, CSX, Kansas City Southern, Norfolk Southern and Union Pacific), as well as the senior labor relations leader of the U.S. railroads owned directly or indirectly by Canadian National.
NCCC is comprised of five of the U.S. Class I railroads (BNSF, CSX, Kansas City Southern, Norfolk Southern and Union Pacific), as well as the senior labor relations leader of the U.S. railroads owned directly or indirectly by Canadian National.
(Lindsey Pound)

A tentative rail labor deal showed promise at the beginning of October, but was rejected by the third largest rail union, amplifying concerns of a strike. However, the strike threat has been held off until Dec. 4.

The National Carriers’ Conference Committee (NCCC) and the Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters (BMWED) have agreed to extend the current cooling off period until at least Dec. 4, according to an announcement Wednesday.

The current period had been set to expire Nov. 19, and the statement issued indicated it “is subject to further extension to maintain alignment, if necessary, with other labor organizations. This extension eliminates the threat of a near-term freight rail service disruption.”

Union leaders are arguing the railroads haven't done enough to address worker concerns, largely surrounding working conditions and paid time off. Specifically, in the last attempted deal, unions opposed a potential five-year contract that already included:

  •  A 24% raise in wages
  •  $5,000 in bonuses
     

The Association of American Railroads (AAR) has issued analysis that indicated a rail strike and nationwide freight railroad shutdown could cost $2 billion per day.

Seven of nine unions have ratified the proposed pact and two, including the BMWED and the Brotherhood of Railroad Signalmen, have not. The next votes are scheduled for Nov. 14 and Nov. 21.

More on rail:

Possible U.S. Rail Strike Now Back On the Table
New Demands by One Labor Union Renews Concerns about Possible Railroad Strike in November

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