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.
Subscribe to 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.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
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 Hollywood news. Justin has also freelanced for outlets including Collider and United Press International.
-
What is Kamala Harris' policy on climate change?
The Explainer How the vice president would tackle one of humanity's biggest challenges if elected
By David Faris Published
-
Today's political cartoons - October 17, 2024
Cartoons Thursday's cartoons - political anxiety, mirror images, and more
By The Week US Published
-
Texas set to execute dad in disputed 'shaken baby' case
Speed Read Robert Roberson's hotly contested execution would be the first ever tied to shaken baby syndrome
By Peter Weber, The Week US Published
-
TD Bank accepts $3B fine over money laundering
Speed Read The US retail bank pleaded guilty to multiple criminal charges
By Peter Weber, The Week US Published
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
The pros and cons of globalization
Pros and Cons Globalization can promote economic prosperity but also be exploitative
By Justin Klawans, The Week US Published
-
The pros and cons of labor unions
Pros and Cons Joining a labor union can have positives — and negatives
By Justin Klawans, The Week US Published
-
The rise and fall of Tupperware
Under The Radar The byword for food storage has filed for bankruptcy – was it a victim of its own success?
By Chas Newkey-Burden, The Week UK Published
-
Boar's Head plant closure leaves another small town looking for answers
The Explainer The Jarratt, Virginia, Boar's Head plant has been shuttered indefinitely after a listeria outbreak
By Justin Klawans, The Week US Published
-
The rise of the world's first trillionaire
in depth When will it happen, and who will it be?
By Justin Klawans, The Week US Published
-
The government's growing concern over a potential US Steel takeover
In the Spotlight Japan's largest steelmaker, Nippon Steel, is attempting to buy the company
By Justin Klawans, The Week US Published