…for now.
The agreement is universally described as tentative:
With the deadline to avert a freight railroad strike by Friday morning approaching fast, a tentative agreement has been reached according to the Labor Department.
The new contracts provide rail workers a 24% wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification, the Association of American Railroads said. The industry trade group added that all tentative agreements are subject to ratification by the unions’ membership…
All the tentative deals are based closely on the recommendations of a Presidential Emergency Board that Biden appointed this summer that called for 24% raises and $5,000 in bonuses in a five-year deal that’s retroactive to 2020. Those recommendations also include one additional paid leave day a year and higher health insurance costs.
More here:
…[U]nion members angered by tough work conditions have yet to ratify the agreement…
Workers have gone three years without a raise amid the contract dispute, with talks stalling over attendance, sick time and scheduling issues. Only two of 12 unions – representing less than 10% of the workforce – are known to have ratified new contracts with freight railways.
The unions, including two large groups representing around 60,000 workers, will need to persuade their members to vote for Thursday’s deal. That might be a tough sell, labor experts warned.
“There’s a lot of anger among the members of these two unions because they feel, after being essential workers during the COVID pandemic, they were getting screwed on the attendance policy and getting punished for taking sick leave,” said Seth Harris, a professor of Northeastern University and former Biden administration official focused on labor and the economy.
They’re been negotiating this for over two years.
Railroad workers seem to have been another category of COVID economic and job satisfaction casualty.
And although I’ve read a couple of articles about the tentative agreement and they include plenty about the possible impact of a strike, I have yet to see any mention of the economic impact of a settlement like this on the US economy and the price of things shipped by rail. Seems to me the price of goods would have to go up no matter what, if workers are paid so much more. Will their raises even make much of a difference for them after all is said and done, considering inflation?
As I wrote yesterday, the Democrats are highly motivated to avoid a strike that would impact negatively on them for the 2022 election, so if there are further snags I expect they will move heaven and earth to resolve them.
