Some U.S. railroads plan to halt crop shipments on Thursday and Amtrak canceled all long-distance routes ahead of a threatened national freight rail strike, as Labor Secretary Marty Walsh hosted talks with railroad and union officials in Washington.
As negotiators met, one of the 12 rail workers’ unions involved in the talks rejected a deal with the freight railroads but agreed to delay a strike by its 4,900 members until Sept. 29.
Max Fisher, chief economist at the National Grain and Feed Association, which represents most U.S. grain handlers, told Reuters that rail customers reported at least one railway would stop taking grain shipments on Thursday morning.
Most major U.S. railways have already stopped accepting new shipments of ammonia fertilizer and other potentially hazardous materials.
Other railroads have been ramping down or diverting freight in anticipation of a strike so they can move critical hazmat materials, such as chlorine and ethanol.
Amtrak announced it is canceling all long-distance routes beginning Thursday in anticipation of the strike. It said most routes in the busy Northeast corridor from Washington to Boston won’t be affected.
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Mr. Walsh summoned negotiators from both sides to his office in Washington on Wednesday to avert a rail shutdown that could come as early as Friday and would disrupt cargo shipments nationwide. About 30% of cargo in the U.S. would be affected, and the U.S. Chamber of Commerce is warning it could have a major negative impact on the economy overall.
A strike would further snarl supply chains after businesses and consumers have struggled with two years of bottlenecks in the wake of the COVID-19 pandemic.
Shortages due to a strike would also likely worsen inflation which is already running at an annual rate of 8.3%, near a 40-year high.
White House spokeswoman Karine Jean-Pierre told reporters aboard Air Force One that “all parties need to stay at the table, bargain in good faith to resolve outstanding issues and come to an agreement.”
A freight rail system shutdown is an “unacceptable outcome for our economy and the American people and all parties must work to avoid just that,” Ms. Jean-Pierre said.
The Labor Department said Wednesday’s meeting was the latest effort by the administration “to encourage the parties to come to a mutually beneficial agreement.”
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Major business groups are calling on the White House and Congress to approve legislation that would prevent a strike if negotiators fail to reach a deal by the deadline. But House Majority Leader Steny Hoyer, who earlier this week had left open that possibility, said that such legislation is unlikely.
The railroads said they have no plans to lock out workers Friday “should negotiations not be successfully completed,” the Association of American Railroads told CNBC.
Among the major sticking points in the talks are sick-time policies and quality of life issues.
Eight of 12 railroad unions have reached tentative deals with companies, but two of the biggest unions, BLET and the SMART Transportation Division, are still holding out. Those two unions represent about half of union railroad workers.
The International Association of Machinists and Aerospace workers, a smaller union representing 4,900 members, voted against a deal on Wednesday.
A 60-day cooling-off period expires at 12:01 a.m. Friday, meaning a walkout could happen in the early morning hours. A strike would affect more than 60,000 workers and idle more than 7,000 trains per day, costing the economy as much as $2 billion per day.
• Dave Boyer can be reached at dboyer@washingtontimes.com.
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