Via Hotline #1,269 from the Rail Passengers Association:
Like Passengers, Rail Labor Has Had Enough
By Jim Mathews / President & CEO
This afternoon, President Biden temporarily stopped the clock on a looming rail labor strike that could further snarl a national rail network that’s been slowing to a crawl for months, frustrating not only ever-more-delayed Amtrak passengers but angry grain and consumer goods shippers as well.
Biden signed an executive order creating a Presidential Emergency Board, or PEB, effective at 12:01 am on Monday, forcing a 60-day pause to permit a “neutral” panel of three to spend 30 days coming up with a potential solution to the impasse between labor and the railroads. After the PEB makes its recommendations, all sides have another 30 days to work out a deal or accept the PEB’s solutions.
If the White House had failed to act, labor would have been legally free to go on strike – and management would have been able to stage lockouts – by Monday. This week, both the Brotherhood of Locomotive Engineers and Trainmen (BLET, a unit of the Teamsters) and the SMART-Transportation Division overwhelmingly approved a strike vote. Now, that doesn’t mean a strike was guaranteed to happen on Monday, but it does mean that the memberships of the unions have signaled their backing for a walkout. Appointing a PEB stops that process, at least temporarily.
There’s more at the link from the RPA.
See A major strike may be coming and I promise you no one is ready for it if it does — UPDATED which covers the situation in depth and provides historic context. Biden’s action was anticipated by one of the people who commented on that story, Grumpy Old Railroader. He predicted this would happen and suggests where it might go:
...Even though BLET members voted to strike, they are unable to do so at this point under the Railway Labor Act. There is a coalition of rail labor organizations, including BLET, that are negotiating together as the Coordinated Bargaining Council (CBC). Under the Railway Labor Act, the CBC is in mandatory mediation which means the CBC and the Carriers are bargaining under the control of a Mediator assigned by the National Mediation Board (NMB). Several organizations, including the BLET have petitioned the NMB to be released from meditation. The NMB has no obligation to do so but if (big IF) they are released, there is a 30 day (I think) cooling off period after which the organizations and the Carriers to “Self Help” which means Strike for the CBC and Lock-out for the Carriers
If history is an example, a strike would be brief because this affects interstate commerce. The POTUS would create a Presidential Emergency Board (PEB). When a PEB is created, both sides have a mandated 60 day cooling off period while the PEB investigates and makes recommendations. Once recommendations are made, both sides have a 30 day cooling off period to consider accepting or rejecting the PEB recommendations. If any party rejects the PEB recommendations, you will be blown away by how fast Congress enacts those PEB recommendations into a Code of Law
CONGRESS, IN AN OVERWHELMING DISPLAY OF BIPARTISANSHIP, WILL JAM THOSE RECOMMENDATIONS DOWN THE THROATS OF THE WORKERS AND THE COMPANIES
I retired after 40 years on the railroad, the final 15 years representing engineers, conductors and brakemen in the 7 Western States. I’ve seen this dance before, Nobody will like the Law Congress passes, not the workers and not the Carriers.
The RPA’s Matthews has some pointed comments on what the situation is:
These storm clouds have been building for a long time, as we’ve shared with you in previous editions of the Hotline. Engineers have gone for years without a wage increase, and now inflation is eating up whatever they have left. But even more than pay, engineers are pushing back against poor working conditions. Just as we’ve seen in other areas of business, ordinary workers – whether they’re Starbucks baristas or McDonald’s “crew” members or railroading professionals – want better work-life balance. Oddly, railroads struggling to hire enough crews to keep trains on the road have doubled-down on irritations like short-turns on shifts and attendance policies that force employees to choose between medical care or family emergencies and work.
BLET National President Dennis Pierce describes the Class I railroads’ current operating philosophy as “employees and shippers be damned,” specifically calling out the disastrous precision-scheduled railroading (PSR) model for what it really is: a way of operating the cheapest possible railroad in which customers must adapt to the needs of the railroad. In this, Amtrak passengers are more alike to the corn and wheat shippers who have been bludgeoned by the PSR model’s terrible service than they might have first understood.
emphasis added
Yesterday’s post about the possibility of a national rail strike goes into great detail on how late-stage capitalism is trashing America’s rail system, and looks at the cost for rail shippers, rail workers, rail passengers, and how it threatens the national economy. This has been building for a long time and the question is, can a settlement be arrived at that not only addresses this but does something to turn things around for the long term?
It’s not just about labor law or capitalism; rail could be a huge part of tackling climate change in a substantive way — as per Solutionary Rail. Or — it could remain all about increasing shareholder value at the expense of everyone else, including the planet.
The poll numbers on yesterday’s post indicated that 80% of the people who voted had heard nothing about this. It’s good to know someone in Washington is paying attention.
Matthews observed: “...this looming dispute could put the folly of too-long freight trains and their resulting punitive work schedules front-and-center before a voting public which has up to now probably never given any of it a second thought. That the public will get to see this two months before they head to the voting booth in midterm elections has not gone unnoticed, either in the White House or in industry.”
A 60 day hold moves the deadline into September. Will anything get done with the rush to the midterms coming up? Will rail even be on the radar of the politicians running for office this fall?
Railroads are largely invisible to most Americans, unless they live next to an active rail corridor or a disaster makes the news. They’re too important to be left to the whims of Wall Street and investors. Again, for an extensive background on how we got to this point, see the post from yesterday — and stay tuned! The deadline for some kind of action has been shifted, but the pressure continues to build.
UPDATE 7-16-2022: Reaction to Biden’s creation of the PEB is getting some media attention. As of 8:00 am East Coast Time, there was nothing in The NY Times, but the story is getting some attention elsewhere.
CNN has coverage that sums up the situation: intolerable conditions for workers, business that is angry at terrible rail service, the impact on the economy if there is a strike — and the intransigence of the rail industry.
The Financial Times reported on July 14, before Biden acted, that this represents a real challenge to Biden's promise to be the most pro-union president, while detailing how great the impact on the US economy would be from a strike.
The Washington Post also weighed in before Friday, but only hints at how deep the divisions are and the problems with the rail industry compared with other coverage.
In a related story, CNBC reports Over $31 billion in trade is rail-landlocked or stuck at anchor off U.S. coasts. A reminder from 1992 suggests how high the stakes could be:
The most recent U.S. rail strike in 1992 reportedly cost the U.S. economy $50 million per day, a rate which would presumably be higher in the event of a strike today.
Port congestion is not helping matters.
The Port of Los Angeles informed CNBC there is a total of 19,665 rail containers that have been waiting nine days or longer, while the Port of Long Beach reported a total of 13,819 rail containers waiting the same time frame. Over 60% of all containers waiting at these ports are destined for the rail.
The approximate total value of trade inside those containers is estimated by MDS Transmodal at over $1.54 billion dollars.
“Rail containers continue to pile up in the ports in record numbers,” said Noel Hacegaba, deputy executive director of administration and operations of the Port of Long Beach. “We need those boxes to move to create more capacity and to keep the economy moving.”
emphasis added
Railroad Workers United has a roundup of news stories covering the situation in the rail industry, both in the U.S. and Canada. There’s a way to subscribe to get weekly updates; this is news that the mainstream media usually overlooks until something big happens.
While The NY Times didn’t have anything yet on the situation in the American rail industry, they do have an interesting story out of the United Kingdom which has been having its own rail strikes.
At a time of rampant inflation and wage stagnation, Mick Lynch, the force behind Britain’s largest railway strikes in three decades, has found success that has surprised even his colleagues.
...Mr. Lynch, the general secretary of the National Union of Rail, Maritime and Transport Workers, has used a series of combative television interviews to build public support for the R.M.T., despite the fact that its striking workers halted most of Britain’s trains for three days last week.
When Richard Madeley, the host of “Good Morning Britain,” asked him if he was a Marxist, Mr. Lynch shot back, “Richard, you do come up with the most remarkable twaddle sometimes,” before pivoting swiftly to what he insisted the strike was about: better working conditions, higher pay, and avoiding layoffs.
...Social media has helped his cause. Clips of Mr. Lynch sparring with interviewers have circulated widely. “Until this week I didn’t know what ‘trending’ was,” Mr. Lynch said to a crowd at a rally outside King’s Cross station on a recent Saturday, “I suppose it’s a good thing.” People jostled to take photographs with him.
...Not having to appeal to disparate voting blocs, Mr. Lynch can push a simple message. Allies say that makes him an authentic champion of the working class at a time when politicians seem increasingly detached from reality.
Rhys Harmer, 28, the former R.M.T. youth chair, and a rail worker, said he and his colleagues watched videos of Mr. Lynch “tearing apart people making blatant lies about our union, our workplaces, and what’s happening to us. It’s refreshing for a lot of our members.”
Even those with no connection to the union have been moved.
American media coverage of labor issues is heavily corporate-influenced. It’s been a while since there have been any union leaders who have been able to get the press to pay attention to worker issues other than in general terms or “how will this inconvenience me?” framing, higher prices, etc.
Grumpy Old Railroader has a summary of what is going on now that Biden has acted, including this statement from the unions:
The United Rail Unions issued the following statement July 15, 2022:
The Rail Unions who are bargaining as part of the Coordinated Bargaining Coalition and the Brotherhood of Maintenance of Way/SMART Mechanical Coalition attended the Public Interest Hearings hosted by the members of the National Mediation Board on Tuesday, July 12, 2022, and we thank the National Mediation Board for their efforts to help the parties reach a voluntary agreement. Unfortunately, the nation’s rail carriers continue to refuse to negotiate an agreement that our members would accept.
As a result, and as was expected, President Biden announced today that he is appointing a Presidential Emergency Board before the expiration of the cooling-off period at 12:00 a.m. on Monday, July 18, 2022. The Presidential Emergency Board will have thirty days to convene, hear the positions of the Unions and rail carriers, and issue recommendations for settlement of the dispute. A second thirty-day cooling off period will begin when those recommendations are issued.
The Rail Unions remain united in their efforts, and are now working together in preparation of a unified case representing the best interests of all rail employees before the Presidential Emergency Board. Our unified case will clearly show that the Unions’ proposals are supported by current economic data and are more than warranted when compared to our memberships’ contribution to the record profits of the rail carriers.
Additional information will be provided as developments warrant. We appreciate your continuing support.
note: this story has been edited to correct the cooling off period to 60 days, not 90 as initially reported.
In the meantime, this 2017 video from Solutionary Rail shows what America’s railroads could be if we can get away from business as usual. The dysfunction of seemingly everything of late could become an opportunity IF we are bold enough to seize it. Enjoy the video — it’s less than four minutes long. Contact your elected officials to let them know you are paying attention, and you want a future we can live in.
Solutionary Rail has more information about what we could be doing with our railroads: the FAQ section can answer a lot of questions. There’s a “rail bite” that explains what Precision Scheduled Railroading is supposed to do — and how it actually works. Solutionary Rail also has a book — in both print and eBook format. (Free download with the code 4WRD2GTHR at check out the last time I checked.) There’s also an Interview Series that contains some fascinating presentations.
Sign up with Solutionary Rail. Also: Join the RPA — and if your state has rail advocacy groups, check them out too. Rail can be a big part of the future we need and want — if we demand it and are willing to work for it.