By Josh Funk
Associated Press
One of the four unions negotiating with the largest freight train company in the United States on Wednesday rejected a tentative agreement to avoid a strike a few days before the deadline to avoid this labor conflict, which threatens to aggravate the problems in the supply chain that have already contributed to a historic rise in inflation and the risk of a recession.
The effects of this possible strike have already begun to be felt in any case, both in cargo and passenger routes: the Amtrak company announced that it will cancel all long-distance trips, with the exception of those in the Northeast, as of Thursday. .
Nearly 5,000 members of the 19th District International Association of Machinists and Aerospace Workers (IAM) voted to reject the tentative agreement brokered by their union leaders.
But they did agree to delay the deadline to go on strike until September 29 to give more time to negotiations and allow other unions to vote on that principle of agreement.
[Stock shares plummet 1,200 points: worst drop since June 2020]
The railway company is trying to reach an agreement with the other unions to avoid a strike before the Friday deadline. But both the Government and the companies are preparing for a nationwide strike, which would paralyze shipments of all kinds of goods: crude oil, clothing, cars, grains...
The strike would be a calamity for many companies that have been struggling to secure their supply chains during the two-year coronavirus pandemic that turned them upside down.
There are 12 unions (one of them with two independent divisions) that must accept the agreements.
So far, nine of them have done so and three are still negotiating and will vote this Wednesday.
A freight train in Homestead, Pennsylvania, in April. Gene J. Puskar / AP
The deals are based on recommendations from a think tank that President Joe Biden appointed this year, which agreed to 24% raises and $5,000 in bonuses in a five-year deal retroactive to 2020. It also includes an additional day of vacation and larger health insurance.
Key unions representing the conductors and engineers who run the trains hope they will grant more demands, such as easing strict time and attendance policies that they say prevent them from taking time off altogether.
[Prices rise slightly in August but annual inflation drops to 8.3% thanks to cheaper gasoline]
Contract negotiations continued Wednesday with Labor Secretary Marty Walsh, who is pushing both sides to come to an agreement.
"They must remain at the negotiating table, in good faith, to resolve outstanding issues and reach an agreement," said White House press secretary Karine Jean-Pierre.
"The closure of the charging system is an unacceptable outcome for the American economy and people, and all parties must work to prevent just that."