COMP NEWS – A second railroad union has voted down the terms of a tentative labor deal that is needed to prevent a nationwide strike. Nearly 10,000 union members voted, with over 60% of them voting to reject the deal.
The Brotherhood of Railroad Signalmen is the second union to vote down the tentative agreement between rail unions, freight rail companies and the Biden administration that was reached on September 15 and critical to avoiding a nationwide rail strike.
The BRS, which represents over 10,000 rail workers and is one of the last three unions at the bargaining table, overwhelmingly rejected the deal, with 39.23% of members approving and 60.57% voting not to approve.
“For the first time that I can remember, the BRS members voted not to ratify a National Agreement, and with the highest participation rate in BRS history,” said BRS president Michael Baldwin in a statement. “I have expressed my disappointment throughout the process in the lack of good-faith bargaining on the part of the NCCC [National Carriers Conference Committee], as well as the part PEB [Presidential Advisory Board] 250 played in denying BRS members the basic right of paid time off for illness. The NCCC and PEB also both failed to recognize the safety-sensitive and highly stressful job BRS members perform each day to keep the railroad running and supply chain flowing.”
Although the labor deal has been rejected, the Association of American Railroads has said that involved parties have agreed to continue working while negotiations go on.
The rejection of the National Tentative Agreement begins a “status quo” period during which the union will reengage with the NCCC until December 4.
A spokesperson for the Association of American Railroads tells CNBC, “Parties have agreed to maintain the status quo so discussions about next steps can progress.”
The AAR spokesperson cited the fact that half of all rail unions have ratified agreements based upon President Biden’s PEB recommendations, which includes the largest wage increases in nearly five decades and would lead to immediate payouts averaging more than $11,000 per railroader ahead of the holidays.
“Once in place, contracts crafted in partnership with the most labor friendly administration ever will allow railroads and railroaders to thrive into the future and deliver for both our customers and our families,” the railroad spokesperson said.
The railroads have estimated that a rail strike could cost the economy $2 billion per day.
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