Union Pacific, one of the nation's major railroads whose operations would be halted by a strike, stated that the action is intended to "protect employees, customers, and the communities we serve."
According to a statement from the railroad's trade group, they needed to take this step to "ensure that no such cargo is left on an unattended or unsecured train."
However, the unions representing the train crew members who are threatening to strike claim that the railroad's new freight restrictions are intended to put pressure on Congress to prevent the unions from walking out. They claimed that the move was "completely unnecessary" and amounted to "corporate extortion."
"The railroads are using shippers, consumers, and our nation's supply chain as pawns in an attempt to get our unions to cave in to their contract demands," the unions said in a statement. "Our unions will not be intimidated, and Congress must not be intimidated by what can only be described as corporate terrorism."
The statements highlight the rising stakes in the labor dispute, which could result in the first national railroad strike in 30 years as early as this Friday. Approximately 60,000 railroad employees, including the engineers and conductors who make up the two-person crews on each train, are set to go on strike. Despite the fact that 45,000 other union members are members of unions that have tentative agreements with the railroads, a strike by engineers and conductors would bring the freight rail system, which transports nearly 30% of the nation's freight, to a halt.
It's the last thing the US economy needs as it works to recover from several years of supply chain problems. A prolonged strike could result in some empty store shelves, temporary factory closures due to a lack of parts, and higher prices due to the limited availability of various consumer goods.
"While these actions are necessary, they do not guarantee a work stoppage," Union Pacific said in a statement. "What we want and will continue to push for is a quick resolution that provides historic wage increases to employees while allowing railroads to restore service as soon as possible, preventing further disruption to the struggling supply chain."
Congress could prevent a strike.
Railroad and airline employees are subject to a different set of labor laws than the vast majority of private-sector workers. The Railway Labor Act, the nation's oldest labor law, allows Congress to take action to keep workers on the job in the event of a management strike or lockout.
However, it is unclear whether Congress will be able to act quickly enough to find a bipartisan solution to avert a strike, especially given the upcoming midterm elections.
When a freight rail strike was first threatened in July, President Joe Biden used the powers he had at the time to prevent it. This triggered a 60-day cooling-off period during which a panel he appointed, known as the Presidential Emergency Board, or PEB, investigated the dispute and made recommendations.
However, the 60-day cooling-off period expires at 12:01 a.m. ET on Friday, allowing the union to strike or the railroads to lock out union members. Biden does not have the authority to prevent another strike or lockout. The national freight railroads will come to a halt on Friday unless there is a labor agreement or congressional action to impose a contract or extend the cooling off period.
"The railroads have demonstrated no intention of reaching an agreement with our unions, but they cannot legally lock out our members until the cooling-off period expires," the union said in a statement. "Instead, they will begin locking out their customers on Monday, further harming the supply chain in an attempt to elicit congressional action."
The US Chamber of Commerce has written to the Democratic and Republican leaderships of both houses, requesting that Congress be prepared to act if the two sides cannot reach an agreement by Friday.
"We continue to believe that a voluntary agreement by all parties is the best outcome," the letter said, "but it is now clear that Congress may need to intervene." It urged Congress to impose a new contract on the unions that have yet to reach a tentative agreement with the railroads based on the PEB's recommendations. It did suggest that rather than imposing a contract, the cooling-off period be extended.
The strike would be over non-wage issues.
The PEB's proposals included an immediate 14% raise for the railroad's 115,000 union members, including backpay back to 2020, and raises totaling 24% over the contract's five-year term from 2020 to 2024. The plan was good enough for eight of the twelve unions representing approximately 45,000 railroad employees to agree to a tentative labor agreement. The most recent deals were reached over the weekend.
However, four of the groups, including the two largest unions representing the engineers and conductors who make up the two-person crews on each train, have so far refused to accept the PEB's proposal.
Two of the unions, representing train crew members, have stated that their members would never ratify a contract that included the current staffing levels and scheduling rules. They claim that due to a labor shortage, their members must be available to report to work on short notice seven days a week, even on days when they are not scheduled to work. These rules do not apply to union members who have reached tentative agreements.
About half of the railroad union members are members of the engineers and conductors unions. And if they strike, even if the other unions agree to keep working, the trains will not run.
According to railroad management, the PEB considered the union's scheduling demands and "expressly rejected" them.
"It is critical that the remaining unions quickly reach agreements that provide employees with raises and prevent rail service disruptions," management said in a statement. It stated that the remaining union agreements should be "based on the PEB's recommendation."
However, the engineers' and conductors' unions are urging their congressional allies not to take any action to impose a labor agreement on workers who have yet to reach an agreement, or to extend the cooling-off period. Only a strike, according to the unions, can resolve the issue, and if management wants to avoid a strike, it must agree to change the work rules.
"Rather than clogging the supply chain by refusing shipments.... "The railroads should work toward a fair settlement that our members, their employees, will ratify," the unions stated. "In order for that to happen, we must improve the working conditions that have been on the table since negotiations began."
According to a statement from a Labor Department spokesperson, US Labor Secretary Martin Walsh, who met with the two sides during mediated talks last week, engaged the two sides again on Sunday to push them to reach a resolution that avoids a shutdown. Due to the railroad labor talks, he has also canceled a trip to Ireland to give a speech.
"All parties must remain at the table, bargain in good faith to resolve outstanding issues, and reach an agreement," the statement stated. "The fact that we are already seeing some effects of railways' contingency planning demonstrates that a freight rail shutdown is an unacceptable outcome for our economy and the American people, and all parties must work to avoid it."