US Supply Chain Under Threat as Unions, Railroads Clash

OMAHA, Neb. — Railroad engineers accepted their deal with the railroads that will deliver 24% raises but conductors rejected theirs, threatening the health of the economy just before the holidays and casting more doubt on whether the industry will be able to resolve the labor dispute before next month’s deadline without the help of Congress, according to an Associated Press report.

Even the threat of a work stoppage could tangle the nation’s supply chain as railroads will freeze shipments of chemicals and other goods that could create hazards if disrupted midway to their destination.

A split vote Monday (Nov. 21) from the two biggest railroad unions follows the rejection by three other unions of their deals with the railroads that the Biden administration helped broker before the original strike deadline in September. Seven smaller unions have approved the five-year deal that, on top of the 24% raise, includes $5,000 in bonuses.

But many union members have voted to reject the contracts because, they say, they fail to address demanding schedules and quality of life issues for employees.

All 12 must approve the contracts to prevent a strike that could cripple supply chains and hamper a stressed U.S. economy still emerging from the pandemic.

Read the full Associated Press report.

Source: https://rvbusiness.com/us-supply-chain-under-threat-as-unions-railroads-clash/