Nationwide freight union strike threatens to derail economy ahead of holiday season


The U.S. inched closer to a nationwide railway strike that could have drastic economic implications for the upcoming holiday season, as the nation's largest freight rail union on Monday rejected a tentative labor deal.
The SMART Transportation Division, or SMART-TD, which ABC News reported represents about 28,000 train conductors, announced it had voted to reject the proposed contract. The deal was shut down by a slim margin, with 50.8 percent of the workers voting against it.
However, the country's second-largest freight rail union, the Brotherhood of Locomotive Engineers and Trainmen (BLET), voted in favor of the contract. BLET represents about 24,000 engineers, per CNN.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
With the two unions coming to a split decision, it is looking increasingly likely that the freight rail industry heads into a nationwide strike — just in time for the busiest period of the year. ABC News noted that a strike is almost certainly to come in December unless the contract is ratified by all 12 of the country's rail unions, and only four have done so.
Despite this, SMART-TD President Jeremy Ferguson said in a statement, "This can all be settled ... without a strike. A settlement would be in the best interests of the workers, the railroads, shippers, and the American people."
The tentative deal, which was brokered by the Biden administration in September, would cover more than 100,000 freight industry workers, according to The New York Times. If ratified, the contract would raise wages by more than 25 percent over five years.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other news. Justin has also freelanced for outlets including Collider and United Press International.
-
The party bringing Trump-style populism to Japan
Under The Radar Far-right party is ‘Rise of Sanseito is ‘shattering’ the belief that Japan is ‘immune’ to populism’ the belief that Japan is ‘immune’ to populism
-
Southern barbecue: This year’s top three
Feature A weekend-only restaurant, a 90-year-old pitmaster, and more
-
Film reviews: Anemone and The Smashing Machine
Feature A recluse receives an unwelcome guest and a pioneering UFC fighter battles addiction
-
Gold tops $4K per ounce, signaling financial unease
Speed Read Investors are worried about President Donald Trump’s trade war
-
The struggles of Aston Martin: burning cash not rubber
In the Spotlight The car manufacturer, famous for its association with the James Bond franchise, is ‘running out of road’
-
Electronic Arts to go private in record $55B deal
speed read The video game giant is behind ‘The Sims’ and ‘Madden NFL’
-
What Saudi Arabia wants with EA video games
In the Spotlight The kingdom’s latest investment in gaming is another win for its ‘soft power’ portfolio
-
Labor: Federal unions struggle to survive Trump
Feature Trump moves to strip union rights from federal workers
-
Trump proposes ending quarterly earnings reports
Speed Read The SEC would have to approve any changes
-
Rupert Murdoch's conservative son wins succession battle
Speed Read Lachlan Murdoch will get control over the media empire that includes Fox News and The Wall Street Journal following his father's death, while his siblings will receive payouts
-
Why are global postal services cutting off package delivery to the US?
Today's Big Question 'Uncertainty' around new tariff rules halts small-dollar imports