WASHINGTON, D.C. — Presidential Emergency Board recommendations for ending the current railroad labor dispute “provide a useful basis to reach a resolution” although they “markedly exceed the rail carriers’ proposal,” Association of American Railroads CEO Ian Jefferies says in a statement issued this morning (Wednesday, Aug. 17).
The group representing railroads in the long-running negotiations, the National Carriers Conference Committee, struck a similar note in its response, saying railroads “are prepared to meet with the rail unions and reach agreements based on the PEB report without delay.”
Unions have not yet commented on the proposal. SMART-TD (Sheet Metal, Air, Rail, and Transportation Workers-Transportation Division) issued a statement this morning that its leaders “have multiple discussions scheduled today as they continue to evaluate the recommendations” and the union “will act judiciously as the PEB’s findings are examined.”
The recommendations delivered to the White House and the two sides in the dispute on Tuesday include a 22% wage increase over five years and a call for railroads to withdraw their proposal to shift conductors from on-train to ground-based positions, among other items [see “Presidential Emergency Board issues rail contract recommendations …,” Trains News Wire, Aug. 16, 2022].
The AAR says the proposal would lead to an average employee payout of more than $11,000 upon ratification, with Jefferies saying “an agreement based on these terms would lead to the largest general wage increase in nearly 40 years. …
“In the interests of all rail stakeholders, now is the time for railroads and their unions to reach a contract. The industry is prepared to propose agreements based on the PEB’s recommendations to provide our employees with long overdue pay increases and avert rail service interruptions.”
The NCCC used near-identical language in saying the PEB recommendations “significantly exceed those proposed by the carriers.” It also said they are “far above those contained in prior rail labor settlements” and would “include the most substantial wage increases in decades.” The railroad group said average rail-worker wages would reach about $110,000 per year by the end of the decade, with total compension — including health care, retirement, and other benefits — averaging more than $150,000 per year.
But it also said “it is in the best interests of all stakeholders – including customers, employees, and the public – for the railroads and rail labor organizations to settle this dispute and prevent service disruptions.”
— Updated at 11:10 a.m. CDT with National Carriers Conference Committee statement; updated at 11:22 a.m. with SMART statement. Trains News Wire will continue to update this story as additional reactions become available.
Being at the forefront I can tell you with authority it’s not the raise or the insurance that’s going to be a sticking point in the PEBs recommendations, it’s the availability policies issue and reasonable time off that if they don’t come to agreement on something acceptable the unions will walk. The carriers poked a bear on this issue thinking the operating crafts would roll over like has happened in the past and that’s not what happened. They either find common ground, avert a strike and that’s the end of this round or they don’t and we walk on that issue alone and congresss gives us the PEBS recommendations and thousands of railroaders quit altogether and the railroads come to a virtual standstill for a long time instead of a few days. Believe me that’s the consensus from the inside. They’re having labor issues now because of that reason alone no matter what they say or try to spin it. My guess the labor troubles they’re having right now are just the tip of the iceberg the TITANIC hit if they keep their precious availability policies. We will see in a little bit
ERIC — Thanks for this great post which explains the TITANIC’s TIP OF THE ICEBERG issue. Someone on this forum a couple of weeks back raised the question — if the companies promote supposed “Precision Scheduled Railroading”, how is it that they can’t schedule their crews? Something has got to give with these Medieval labor practices. If the situation doesn’t improve there will be no crews to schedule. Young workers will go into other trades. While the current work force will get up and walk away.
How is it that a corporation can employ thousands of men and women but doesn’t see that these people are human beings?
Excellent post and point. I have several former co-workers now who come off a run, spend just the mandatory time off, and go right back out. Non-stop. Like Popeye used to say: “That’s all I can stand ’cause I can’t stands no more”!!!
The bigger question is, after whatever agreement is reached…will the railroads increase rates or absorb the minimal increase in costs out of their tremendous amount of profits? That would be a win across the board for the United States economy.
Not covered in this proposal is the terrible attendance policy of BNSF and others. Unions should hold out for a guaranteed 24 hours off per week at home terminal.
Hoping to see a nationwide strike… and see how “pro-union” Biden reacts.
He’ll put them back to work…just like every other president has done during the last several major strikes. I’ve been through one or two one- day strikes myself.
Not sure I see it as a Union loss. They did not get everything they wanted but they got a higher pay raise and a freeze in paying more for benefits– the latter a very BIG win from my perspective. (An annual average increase of between 4 and 5% is pretty good traditionally, but much less so with the inflation rate over the past year)
Actually, I think the payraise issue is a big loss for both the workers and the industry given the working conditions and pay compared to other options.
Question, could one railroad offer to pay more than others if they thought it was to their benefit?
The question now is will the Unions accept the PEB recommendations or seek “self-help” I.e. a Strike? The Rail Unions asked for a lot more money and they don’t want to be seen as the losers in these negotiations.
Democrats can’t afford a Rail Strike before November so if the Unions did Strike, it’s likely Congress would adopt the PEB recommendations. If the Rail Unions do strike, knowing this they can at least tell their membership they tried, but we’re screwed.
Stay Tuned! It will be interesting.