Railway Workers Reject Latest Contract Offer, Increasing Fears of Strike Ahead of Holiday Season

A BNSF engine pulls Metra commuter train cars at the Metra/BNSF railroad yard outside of downtown Chicago on Sept. 13, 2022. Scott Olson/Getty Images

A rail workers union rejected a contract deal brokered by President Joe Biden citing stringent management rules on taking time off for emergencies, raising fears of an imminent strike that could cripple already-disrupted supply chains.

“Railroaders are discouraged and upset with working conditions and compensation and hold their employer in low regard,” said Tony Cardwell, president of the Brotherhood of Maintenance of Way Employees Division (BMWED) in an Oct. 10 statement, after members voted 6,646–5,100 against ratification of the tentative national agreement reached with the Class I freight railroads.

“They resent the fact that management holds no regard for their quality of life, illustrated by their stubborn reluctance to provide a higher quantity of paid time off, especially for sickness. The result of this 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.”

BMWED is the third largest railroad union in the country. Nearly 12,000 BMWED members submitted ballots for the latest vote. The top two largest freight unions Representing over 55,000 engineers and conductors are currently conducting their voting through mail.

Even if members from the other unions vote in favor of the deal, they are likely not to report to work considering the rejection from BMWED, CNN reported. The BMWED decision could have a bearing on the other workers’ votes as well.

A strike would debilitate U.S. supply chains while also disrupting passenger services just before the critical Christmas and Thanksgiving holiday season. Both sides have agreed to renegotiate and work is scheduled to continue as normal until at least Nov. 19, five days after Congress reconvenes.

Biden’s Deal

The deal brokered by the Biden administration contained a 24 percent raise, annual bonuses, and health care benefits. “And this is a great deal for both sides, in my view,” said the president at the time, referring to the workers and railway companies.

“To the American people: this agreement can avert the significant damage that any shutdown would have brought. Our nation’s rail system is the backbone of our supply chain,” Biden said. “Everything from clean water, to food, to gas, to everyday—I mean, liquified natural gas, to everything—every good that you need seems to be on a rail, getting delivered to where it needs to go.”

The tentative deal was reached on Sept. 15 following a 20-hour marathon of negotiations which involved U.S. Labor Secretary Marty Walsh and the president. Workers were poised to gain an average payment of $11,000 if the deal was ratified along with annual cash bonuses of $1,000.

However, difficult work conditions due to staffing shortages are the main reason for the agreement falling through. Staff are often required to report seven days a week and report to work on short notice.

White House Response

When asked by a reporter where the current situation would lead, press secretary Karine Jean-Pierre replied that the “railroad employees have agreed to a cooling-off period that extends well into November, giving them adequate time, we believe, to continue their work and ensuring that our economy is under no immediate threat.”

Jean-Pierre added that the “current proposed contract does not mean we face an immediate rail shutdown, but it does mean that the union and the employers have additional work ahead.”