The Brotherhood of Locomotive Engineers and Trainmen and the SMART Transportation Division represent half of railroad union workers.
Eight out of the 12 unions have reached tentative agreements with the railroad carriers, according to the National Carriers’ Conference Committee. They did not negotiate the quality-of-life provisions, sources familiar with the negotiations tell CNBC. The unions have what are called “Me Too” agreements, which means whatever benefits the BLET and the SMART unions agree to in their contracts with the carriers, other unions’ members receive.
“If this contract is presented to our members in its current form, it will not pass,” said a labor spokesperson to CNBC. “The workers are angry. They want movement on attendance policies and not be afraid to take a sick day or vacation day without the fear of termination. There will be no ratification unless this is addressed.”
A railroad spokesperson told CNBC they would not comment on ongoing negotiations, but stressed, “The railroads remain in active discussions with the unions that have not yet reached tentative agreements and will continue making every effort to reach agreements based on the PEB recommendations.”
In July, President Joe Biden appointed a Presidential Emergency Board in hopes of averting a strike and making recommendations that railroads and labor unions could agree on.
Attendance policies and staffing have been a point of contention over the last two years of this negotiation. More than 700 union workers quit after BNSF, a wholly owned subsidiary of Berkshire Hathaway, instituted a points-based attendance system in February. The system was revised in May but union workers say the modifications did not fix the safety issues calling it “brutal.” Labor sources tell CNBC employees would be penalized for taking a day off to go to their parent’s funeral.
The railroad has contended that the new policy is critical to making sure it has enough workers available for its trains. Rails have faced scrutiny for worsening service from unions, shippers and regulators.
“The railroad has brought its labor woes on itself,” said a labor insider with knowledge of the negotiations. “They have made steep staffing cuts to appease shareholders and improve their bottom line. Workers are burned out. You have heard from the railroads they are hiring but they are not retaining talent because of the point system where you are on call for 12 hours a day and you have to be an hour or less away from your job. They are being held hostage.”