OMAHA, Neb. – A major railroad union rejected a proposed contract deal with five railroads, possibly putting Midwest grain shipments at risk. A strike could idle the major grain carriers, including BNSF, Union Pacific, and Kansas City Southern. The rejection came from the Brotherhood of Maintenance of Way Employees. The union had been offered a five-year contract with 24% raises and $$5,000 in bonuses. Tony Cardwell, union president said the railroads fell short on paid sick time. Four other unions have approved new agreements, but seven others have yet to settle. In all 12 unions must do so to head off a strike.
Federal intervention
Grain-shippers were relieved in September when President Biden pressured the railroads and unions to reach a deal begore a walkout. That got the parties back into negotiations. But that was then, this is now. Because a strike could cripple recovery from the post-CoVid supply-chain crisis, Biden could declare a national economic emergency to keep the railroads moving. There also have been industry calls on Congress to intervene to keep raw materials moving to factories.