The National Carriers’ Conference Committee stated that three more railroad unions have struck tentative agreements with US freight railroads on a new labor contract (NCCC).
The International Brotherhood of Teamsters’ Brotherhood of Maintenance of Way Employes Division, the International Brotherhood of Boilermakers, and the International Association of Sheet Metal, Air, Rail, and Transportation Workers-Mechanical Department all announced tentative agreements on Sunday.
“The tentative accords… include a 24% wage rise from 2020 to 2024 — with a 14.1% wage increase effective immediately — and five annual $1,000 lump sum payments.” The NCCC, the group representing Class I railways in the contract discussions, stated that “portions of the wage increases and lump sum bonuses are retroactive and would be paid out promptly following approval of the agreements by the unions’ membership.”
The draft deal also includes an additional paid day off that can be used for personal reasons, vacation, or to celebrate an employee’s birthday.
More than 86,000 freight rail employees are represented by the three unions. Eight unions have accepted provisional agreements that will be presented to their members for approval. Over 140,000 employees work for Class I railroads in the United States and are represented at the bargaining table.
A new labor agreement has been in the works since January 2020, but negotiations have stalled. A government mediation board took over the proceedings, but the parties dropped out earlier this summer.
The remaining unions would be able to legally stage a work stoppage or strike after a cooling-off period ends on September 16, according to the Railway Labor Act.
Unions respond to a potential moratorium on hazardous goods.
The leaders of two rail unions claimed on Sunday that the freight railways’ plan to start delaying shipments of security-sensitive and hazardous material ahead of this week’s strike deadline is merely an attempt to raise pressure on Congress to intervene and prevent a work stoppage.
Several major Class I railroads announced Friday that they would reduce shipments of hazardous goods and other chemicals in the event that loads were left unattended on a train network. Strikes or lockouts are not permitted until Friday.
“This completely unnecessary attack on rail shippers by these highly profitable Class I railroads is nothing more than corporate extortion,” said Jeremy Ferguson, president of the Sheet Metal, Air, Rail, and Transportation Workers-Transportation Division union, and Dennis Pierce, president of the Brotherhood of Locomotive Engineers and Trainmen union, in a joint statement.
“Our unions remain at the bargaining table and have made a proposal to the rail carriers that we would be happy to put to our members for ratification, but it is the rail carriers who refuse to achieve an acceptable deal.” Indeed, our recent conversations have made plainly evident that the railways have no intention of reaching an agreement with our unions, but they cannot legally lock out our members until the cooling-off period expires. Instead, they will begin locking out their customers on Monday, further disrupting the supply chain in an attempt to elicit congressional action.”
