Congress enforces railroad labor contract, preventing strike

Justin Franz

Montana Free Press

The U.S. Senate voted Thursday to force four railroad unions to accept the terms of a labor contract their members had previously rejected, preventing a possible strike that would have brought freight and passenger trains to a halt across the nation as early as next week. 

It was the first time in 30 years that the federal government wielded the power to prevent railroad strikes given to it by the Railway Labor Act of 1926.

The vote brought to an end a months-long standoff between labor and railroad management that stemmed from a contentious round of contract talks. Those negotiations focused not just on compensation, but also on working conditions at the nation’s largest freight railroads, including BNSF Railway and Union Pacific, both of which operate in Montana. 

Back in September, it looked as if tens of thousands of railroaders were ready to walk off the job. But then White House officials helped broker an eleventh-hour deal to avoid a national strike. That deal was based on recommendations made by a Presidential Emergency Board established earlier in the summer to study the issue. The new deal called for a retroactive 24% wage increase over a five-year period from 2020 through 2024, as well as a $5,000 bonus. 

Railroaders, however, were critical of the deal because it did not address some of their biggest concerns, specifically work attendance policies that some railroads, including BNSF, have adopted. The railroads say those policies help them ensure they have enough people to move trains. But labor leaders have called them “draconian,” noting that it’s nearly impossible for workers to take a day off even for a medical appointment.

Union officials added that they believed these policies were being introduced only because railroads have dramatically reduced their workforce in recent years. According to the U.S. Surface Transportation Board, America’s largest freight railroads have reduced their workforce by a combined 45,000 people, or 29%, in the last six years. 

In October and November, the new contracts were put to a vote by union members across the country. Eight unions accepted the contracts, but four rejected them, including SMART Transportation Division, one of the largest rail unions in the country. That vote launched a “cooling-off” period in which management and labor would again try to hash out a deal. But as the Dec. 9 deadline approached, it looked as if no agreement would be reached and a strike was imminent. 

Monday, President Joe Biden called on Congress to resolve the dispute in order to avoid a shutdown of the rail network right before the holidays. Two days later, the House of Representatives made two votes: one to force the four remaining unions to adopt the Tentative Agreement and another to require that railroads provide at least seven paid sick days to employees. 

Thursday, the U.S. Senate had its say. The bill to implement the Tentative Agreement passed 80 to 15 — five senators did not vote — but the amendment to require paid sick leave failed 52 to 43, again with five not voting.

Montana Sen. Jon Tester voted in favor of both, and Sen. Steve Daines voted to implement the agreement, but against paid sick leave for the railroaders. 

A spokesperson for Daines said he made his vote to protect Montana’s agricultural and energy industries from a devastating rail shutdown.

Tester echoed those same concerns. 

“Passing this legislation will protect American jobs and is the right move for our economy,” Tester said in a statement to the Montana Free Press. “A rail shutdown would’ve killed our supply chain, hurt workers and small businesses, and sent consumer prices through the roof. I’m looking forward to President Biden signing this resolution into law so that we can keep our economy moving and ensure that rail workers get the respect they deserve and the compensation to match.”

A request for comment from Montana U.S. Rep. Matt Rosendale, who voted against forcing the contracts on the unions earlier in the week, was not returned before this story was published. 

The Associated Press reports President Joe Biden praised the bill’s passage.

“Communities will maintain access to clean drinking water. Farmers and ranchers will continue to be able to bring food to market and feed their livestock. And hundreds of thousands of Americans in a number of industries will keep their jobs,” Biden said after the vote. “I will sign the bill into law as soon as Congress sends it to my desk.”

The Senate voted shortly after Labor Secretary Marty Walsh and Transportation Secretary Pete Buttigieg emphasized to Democratic senators at a Capitol meeting that rail companies would begin shutting down operations well before a potential strike would begin, AP reports. The administration wanted the bill on Biden’s desk by the weekend.

Shortly before Thursday’s votes, AP reports, Biden defended the contract that four of the unions had rejected, noting the wage increases it contains.

“I negotiated a contract no one else could negotiate,” Biden said at a news briefing with French President Emmanuel Macron. “What was negotiated was so much better than anything they ever had.”

AP reports that The Association of American Railroads trade group praised the Senate vote to impose the compromise deal that includes the biggest raises in more than four decades.

Still, CEO Ian Jefferies acknowledged that many workers remain unhappy with working conditions.

“Without a doubt, there is more to be done to further address our employees’ work-life balance concerns, but it is clear this agreement maintains rail’s place among the best jobs in our nation,” Jefferies said.

Union groups were unhappy with the final result, AP reports.

“The Senate just failed to pass seven days of paid sick leave for rail workers. We are grateful to the 52 Senators who voted YES and stood with rail workers,” tweeted the Transportation Trades Department labor coalition. “Shame on the 43 elected leaders who abandoned the working class. We will not forget it.”

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Havre Daily News staff contributed to this report.