Crisis averted… for now

US railroad companies and union leaders, collectively representing ~57,000 workers, reached a tentative agreement yesterday to avert a nationwide strike – though it still has to be ratified by union members. Had an agreement not been reached, it would’ve likely cost the economy ~$2 billion per day.

🛤️ More deets… At the heart of the labor dispute is the rail companies’ attendance policies. Workers say they’ve been forced to essentially be on call 24/7 and remain within a two-hour radius of the jobsite at all times, outside of paid vacation and personal leave days.

• The new tentative agreement carves out an exception for workers to take time off for scheduled medical appointments, without fear of discipline. Which seems to have been a big issue: union leaders reportedly pushed for the concession during 20 straight hours of negotiation leading up to the deal.
• Both sides had already agreed to a compromise this summer giving union workers a 24% increase in wages over a five-year period from 2020 through 2024, including an immediate average payout of $11,000 upon the deal’s ratification.

✋ Yes, but… there’s no guarantee that ratification will occur. Labor experts have warned the tentative agreement could be a tough sell to workers, since unscheduled sick days would still result in penalties.

• All 12 labor unions have now reached tentative agreements with US railroads in recent days, but only two of those deals have been ratified by rank-and-file members.

🛑 But, but, but… The agreements include a “cooling off” period of several weeks to ensure no immediate rail shutdown occurs if a ratification vote fails. And Congress has the power to step in and prevent workers from going on strike, if it comes to that.

Stay tuned.