The strike preparation schedule for rail operators, customers and logistics managers continues to change due to a lack of coordination among key rail unions, leaving open the possibility of a two-day strike. in December.
BMWED, which represents the Brotherhood of Maintenance of Way Companies, is scheduled to strike on December 5 along with the Brotherhood of Railroad Signalmen (BRS). But BMWED has announced that it will extend the break if one of the larger unions – the Transportation Division of the International Association of Sheet Metals, Aviation, Railways and Transport Workers (SMART-) TD) and the Brotherhood of Locomotive and Mechanical Engineers (BLET) — voted not to approve the proposed labor agreement. Those key votes will be announced next Monday.
But unlike BMWED, the BRS – which could also go on strike after the cooling-off period ends on December 4 – has not said whether it will extend the negotiating deadline.
The BRS did not respond to CNBC’s multiple requests for an update on its negotiating schedule and whether it is considering aligning with other unions.
Under federal safety measures, railroads began preparing for the strike seven days before the strike date. Carriers began to prioritize protecting and moving security sensitive materials such as chlorine for drinking water and hazardous materials during rail cooling.
96 hours prior to the strike date, the chemicals were no longer shipped. According to the American Chemistry Council, railroad data shows a reduced 1,975 trucks of chemical shipments during the week of September 10 when the railroads stopped accepting shipments due to the threat of a strike.
The Association of American Railroads will announce its planning steps, similar to what it said announced in September, after the final votes and if the BRS cooling down period changes.
CSX Transportation freight trains were parked in a railroad yard in September during the initial risk of a rail freight workers union strike.
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Here’s an analysis of how the complex situation, which poses serious risks to the US economy, GDP growth and inflation, could play out in the coming days and weeks.
Result number 1
If either union votes against ratification on Monday, the cooldown timer will be reset until December 8 and a strike could begin on December 9. BMWED will then join BLT and SMART-TD. However, if the BRS does not change its schedule to accommodate other unions, a strike will begin on December 5.
Based on the September strike preparation guidelines, if there is a strike on December 5, preparations for the strike are expected to begin on November 28. The hospital is back after the Thanksgiving break. The house is back on the hill on November 29.
Several industry groups have urged Congress, the authority under the Railroad Labor Act, to act to stop the strike.
Result number 2
Should the BRS decide to join BMWED and extend the break, to accommodate the larger federation’s schedule, strike preparations will begin on December 1.
Result number 3
If the BLT and SMART-TD associations vote to approve the proposed agreement, then BMWED and BRS could go on strike on December 5.
The difference between four days may seem insignificant, but planning is needed on how to move rail products to alternative logistics.
ups is the rail’s biggest customer.
A UPS spokesperson told CNBC: “We encourage an immediate solution that benefits all parties, and we believe that agreements can be reached. A rail strike would cause problems. unnecessary impact on the US economy and consumers. UPS will tailor our integrated smart logistics network to serve our customers.”
Jon Gold, the National Retail Federation’s vice president of supply chain and customs policy, told CNBC they remain concerned about the possibility of a rail strike in the coming weeks, citing the potential for a rail strike. Supply chain disruptions will create more inflationary pressures.
“A rail strike in December is likely to affect holiday goods, as well as shipments for spring goods that retailers have already begun to import,” Gold said. “We hope rail organizations transporting freight and rail labor will resolve the contract issue without going on strike or causing disruption. Otherwise, Congress must quickly intervene to ensure interruption does not occur.”
A recent release economic analysis by the American Chemistry Council estimated that a railroad strike would affect about $2.8 billion in chemical goods shipped weekly, with a month-long strike resulting in damage. Overall for the economy is $160 billion, or one percentage point of GDP, and an increase in a key inflation indicator, the Producer Price Index, is 4%.
The ACC represents companies in the industrial, energy and pharmaceutical sectors which, among other manufacturing sectors, include 3M, Dowdupont, ExxonMobil, letter V, BP and Eli Lilly.
The ACC is among groups urging Congress to intervene, using the authority it has to impose a deal under the Railroad Labor Act.
