New York September 10 2022: US freight railroads will reduce their services from Monday after two of the country’s largest rail unions failed to agree on a new contract this week, the Journal of Commerce reported.
The railroads began notifying customers about the service cuts, which are taking place ahead of a possible strike on Sept. 17, Journal of Commerce said, citing a customer advisory from Norfolk Southern Corp. The Association of American Railroads confirmed in a statement Friday that six Class I freight railroads will begin to take steps to “manage and secure” shipments of some hazardous or sensitive materials from Monday.
Other freight customers may also experience delayed or suspended service over the next week, the railroad association said, adding that talks with the remaining unions will continue throughout the weekend.
“The railroads want, and continue to advocate for, a prompt resolution that would provide historic wage increases to rail employees — and allow the railroads to continue servicing customers and prevent further disruption to the struggling supply chain,” the association said in the statement.
Railroads and workers have faced years of challenging negotiations, which began in January 2020, shortly after the labor contract froze at 2019 levels. After the National Mediation Board failed to carve out an agreement earlier this summer, the Biden administration appointed a mediation board that issued recommendations including wage increases and expanded health coverage.
Railroads Brace for Wage Hikes on Panel’s Plan to Avert Strike
The two unions that have not yet reached a deal — the Brotherhood of Locomotive Engineers and Trainmen and the International Association of Sheet Metal Air, Rail, and Transportation Workers — account for more than 90,000 rail employees, according to the report. Ten other unions have already struck contract deals.
Any stoppages would escalate the challenges confronting the freight rail system and would “drastically make inflation worse” for Americans, said the Agricultural Transportation Working Group, a collection of 31 agricultural organizations. In a letter to lawmakers Thursday, the group urged Congress to prepare to intervene, if necessary, to prevent a strike from taking place.
“The freight rail system already is significantly challenged and many rail customers are not receiving timely rail service,” the group said in the letter. If an agreement isn’t reached by Sept. 16, “we strongly urge Congress to act to avoid significant economic damage to U.S. supply chains and further uncertainty for rail customers.”
A freight rail stoppage would occur as America’s farmers harvest their crops and would exacerbate global food insecurity and likely contribute to further geopolitical instability in regions that experience famine, the letter said.
