Two more unions approve deals with freight railroads
Half of the 12 unions involved in negotiations have agreed to contracts
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Two more labor unions have voted to approve new contracts with freight rail carriers over the past day, signaling progress as negotiators work to avoid a nationwide strike that could come as early as next month.
Locomotives are coupled to railway cars at the Selkirk rail yard Sept. 14, 2022, in Selkirk, N.Y. (AP Photo/Hans Pennink / AP Newsroom)
The Sheet Metal, Air, Rail and Transportation Railroad, Mechanical and Engineering Department (SMART MD) announced Wednesday that its members voted by a 54% margin to ratify a tentative agreement, and members of the National Conference of Firemen & Oilers (NCFO) ratified an agreement Thursday.
With SMART MD and NCFO now on board, half of the 12 unions involved in negotiations with major U.S. railroads such as BNSF, Union Pacific and Norfolk Southern have ratified agreements, while five more unions' votes remain outstanding.
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A freight train rolls past an oil refinery in the Port of Los Angeles in Wilmington. (Luis Sinco / Los Angeles Times via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UNP | UNION PACIFIC CORP. | 243.55 | +11.57 | +4.99% |
| CSX | CSX CORP. | 34.03 | +0.36 | +1.07% |
| NSC | NORFOLK SOUTHERN CORP. | 240.83 | +4.61 | +1.95% |
Members of one major rail union, the Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters (BMWED), rejected a tentative deal earlier this week in a setback that renewed fears of a work stoppage. But the major union agreed to continue negotiating at least until Congress reconvenes in mid-November.
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Negotiations for new contracts have been ongoing for years, and all twelve unions have to agree to their deals to avoid a strike that the Association of American Railroads (AAR) says would cost upward of $2 billion per day, devastating an already fragile supply chain and the economy at large.
The Biden administration stepped in to assist in brokering a deal last month ahead of a mid-September strike deadline, and a tentative deal was reached to buy more time.
President Biden and Labor Secretary Marty Walsh attend a Labor Day visit to United Steelworkers of America Local Union 2227 in West Mifflin, Pa., Sept. 5, 2022. (Mandel Ngan/AFP via Getty Images / Getty Images)
The proposed contracts would provide rail workers a 24% wage increase during the five-year period from 2020 through 2024 and would include an immediate payout on average of $11,000 upon ratification, according to the Association of American Railroads. But all tentative agreements are subject to ratification by the unions' membership.
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Rail workers opposed to the tentative agreements have been pushing for better working conditions to be included in the proposals, citing heavy workloads, demanding schedules and a lack of time off.
FOX Business' Ken Martin and the Associated Press contributed to this report.