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And a freight rail strike could cost the US economy $1 billion in its first week alone, according to a new analysis from the Anderson Economic Group. But that’s nothing compared to what would happen with a prolonged rail strike. CommutingOnly the nation’s freight rail lines face a pending strike, but commuters would likely be affected, too. Many commuter trains travel on tracks maintained and operated by the freight railroads and passenger railroads expect they’ll have to shut down their operations once the freight strike starts. Many commuter railroads also move over freight rail lines and could not operate if a strike was called.

New York CNN Business —America faces a growing risk of a crippling national freight rail strike in two weeks after rank-and-file members of the nation’s largest rail union, which represents the industry’s conductors, rejected a tentative labor deal with freight railroads, the union announced Monday. The nation’s second-largest rail union, which represents engineers, ratified its own contract. But the failure of the conductors to ratify their own deal is another setback to efforts to avoid a crippling nationwide rail strike. Both unions reached tentative deals in September in a marathon 20-hour negotiating session just hours before their earlier strike deadlines. Although 64.5% of members who ride the locomotives with the engineers supported the deal, 50.87% members of train and engine service members of the union voted against ratification.

☆ Large rail union SMART-TD votes to reject labor deal as national strike moves closer
▼ + stars: | 2022-11-21 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +2 min

SMART-TD, one of the largest railroad labor unions, voted down a tentative agreement with rail management, raising the likelihood of a strike in December. The BLET, the other largest union, voted to ratify the labor deal but said it will honor the picket line. But BMWED announced it would extend its cooling-off period if one of the larger unions voted not to ratify the tentative labor deal. SMART-TD, BMWED and BRS represent more than 50% of all rail labor. A strike would affect all of the major rail operators, including Union Pacific , Norfolk Southern and CSX .

☆ Retailers warn of ‘self-inflicted economic disaster’ after largest rail union rejects labor deal
▼ + stars: | 2022-11-21 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

“Retailers urge policymakers to use every tool at their disposal to avoid a self-inflicted economic disaster,” the trade group said in a statement. The warning was issued shortly after America’s largest rail union rejected a tentative labor deal with freight railroads, raising the risk of a crippling national freight rail strike. The National Retail Federation, the world’s largest retail trade group, similarly called on Congress to intervene “immediately” to avoid a “catastrophic shutdown” of the freight rail system. A rail strike would come at a difficult time as the US economy is still grappling with high inflation, surging borrowing costs and elevated recession risks. “This would be the worst possible time of year to have a disruption in rail freight and rail transportation,” Matthew Shay, CEO of the NRF, told CNN on Monday.

☆ With U.S. economy at risk, here's how a national rail strike could start in December
▼ + stars: | 2022-11-17 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +2 min

The strike prep calendar for rail operators, customers, and logistics managers continues to be in flux with a lack of coordination between key rail unions leaving open the potential for two strike dates in December. BMWED, which represents the Brotherhood of Maintenance of Way Employees, is scheduled to strike on December 5 with the The Brotherhood of Railroad Signalmen (BRS). But unlike BMWED, the BRS — which can also strike after its cooling-off period ends on Dec. 4 — has not indicated whether it will extend its deadline for talks. According to federal safety measures, railroad carriers begin prepping for a strike seven days before the strike date. The carriers start to prioritize the securing and movement of security sensitive materials like chlorine for drinking water and hazardous materials in the rail winddown.

New York CNN Business —A third railroad union has rejected a tentative labor deal, a move that further raises the odds that America’s 110,000 freight railroad workers will go on strike early next month. It is the smallest of 13 unions that represent more than 100,000 union members at the nation’s major freight railroads. The union’s brief statement on the vote said it “fully expects to continue negotiating further toward a satisfactory contract” with railroad management. A freight railroad strike would create massive problems for the US economy, snarling still-struggling supply chains and triggering widespread bottlenecks and shortages. Congress can also prevent or end a strike by extending a cooling-off period during which the unions cannot strike, or by imposing a contract on union members.

☆ What the wave of tech layoffs tell us about the economy
▼ + stars: | 2022-11-07 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

What’s happening: Tech companies are announcing an alarming number of layoffs and hiring freezes. ▸ Lyft (LYFT) said last Thursday that it will lay off 13% of its employees, or nearly 700 people, as it rethinks staffing amid rising inflation and fears of a looming recession. But other companies won’t be immune to the softening demand from consumers and businesses that tech companies have noted. It doesn’t help that the uncertainty around the platform comes at a bad time for ad revenue-dependent tech companies. More potential supply chain woesThe threat of a US rail strike that could disrupt supply chains is still very real.

They also give union members cash bonuses of $1,000 a year. All told, the backpay and bonuses will give union members an average payment of $11,000 per worker once the deal is ratified. After BMWED rejected their tentative deal, union leadership proposed adding paid sick days during a bargaining session, only to have management reject the motion out of hand. Congress can also prevent or end a strike by extending a cooling-off period or imposing a contract on union members. Union members working in other industries have recently balked at approving deals, even when recommended by their leadership.

☆ Union Pacific cuts volume growth forecast as worker shortage weighs
▼ + stars: | 2022-10-20 | by ( ) www.reuters.com time to read: +2 min

A Union Pacific rail car is parked at a Burlington Northern Santa Fe (BNSF) train yard in Seattle, Washington, U.S., February 10, 2017. REUTERS/Chris HelgrenOct 20 (Reuters) - Union Pacific Corp (UNP.N) on Thursday cut its annual volume growth forecast despite a rise in third-quarter shipments, as the U.S. railroad operator struggles with worker shortages. "Inflationary pressures and operational inefficiencies continued to challenge us," Union Pacific Chief Executive Officer Lance Fritz said in a statement. The company trimmed its forecast for full-year volume growth to about 3% from 4%-5%, even after a 3% rise in the third quarter led by higher coal and renewables shipments. Excluding a $114 million charge from the tentative labor deal, the company posted a net income of $3.19 per share, ahead of Refinitiv IBES estimates of $3.06 per share.

Things will remain status quo with the union’s contract until then. The engineers and conductors union votes are cause for “apprehension on all sides,” said the source. Online chatter among the conductors union and engineers union members signal they want a strike before even seeing the contract, while some are calling for reason, the source said. Conductors union and engineers union members will be mailed ballots at the end of this month with a 21-day voting period. Although most union contracts are ratified, there have been some very high-profile examples of angry union members voting no.

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