Large railroad labor unions say they will strike if quality of life is not addressed in new contract

Two of the largest railroad unions in negotiations with railroad carriers are threatening to go on strike if their demands are not met.

The Brotherhood of Locomotive Engineers and Trainmen are part of the railroad union.

The railroads have reached tentative agreements with 10 of the 12 unions. Sources told CNBC that they did not negotiate the quality of life provisions. Whatever benefits the BLET and the SMART unions agree to in their contract with the carriers, other unions' members receive, is referred to as "Me Too" agreements by the unions.

A labor spokesman told CNBC that the contract won't pass if it's presented in its current form. Workers are angry. They want to be able to take sick days without fear of being terminated. Unless this is addressed, there won't be a treaty.

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 according to the recommendations of the PEB.

The Presidential Emergency Board was set up by President Biden in order to prevent a strike and make recommendations to labor unions.

There have been disagreements over attendance policies and staffing over the last two years. Hundreds of union workers quit after BNSF instituted a points-based attendance system. The system was revised in May but the modifications didn't fix the safety issues. CNBC employees would not be allowed to take a day off to attend their parent's funeral, according to labor sources.

The new policy is important for the railroad to have enough workers for its trains. The service of rails has been scrutinized for worsening.

A maintenance-of-way worker walks alongside a segment of newly laid railroad track on the Burlington Northern Santa Fe (BNSF) Railway Co. Southern Transcontinental line in Alva, Oklahoma, U.S., on Wednesday, Aug. 19, 2015.

A labor source with knowledge of the negotiations said that the railroad has brought its labor troubles on itself. Staffing cuts have been made to appease shareholders. The workers are no longer working. You have heard that the railroads are hiring but they are not retaining talent because of the point system where you have to be an hour away from your job. They are hostages.

The largest freight railroads in the US have reduced their workforce in the last six years.

40% of the nation's long-distance trade is moved by rail. The rail industry estimates that a strike would cost the economy up to $2 billion a day.

Several industry groups, including the American Trucking Associations, wrote a letter to Congress urging action because of the current trucker shortage.

Chris Spear, President and CEO of the American Trucking Associations, said in the letter that it would not be possible to add 460,000 long-haul trucks every day because of equipment and driver shortages. Any rail service disruption will cause havoc in the supply chain.

In the event of a strike, the railroads will be securing and managing security-sensitive freight and hazmat cargo such as chlorine used by public water departments to purify drinking and chemicals used infertilizers. The measures were put out by Norfolk Southern.

Certain types of shipments will be temporarily halted on September 12. Certain other customers will see a preliminary curtailment of service before September 16 to allow us to safely ramp down our network.

According to the American Association of Railroads, the carriers are following the rules.

The railroad spokesman wrote in an email to CNBC that operational changes were delayed as long as possible. With less than a week away from a potential service interruption, carriers are obligated to take appropriate actions to prepare, which include making plans for handling H Hazmat shipments, as well as other freight that may be impacted if service must be reduced or stopped. Notification to customers is one of the most important parts of contingency planning.

The time has arrived when certain customers will begin to be impacted if agreements are not reached, according to the spokesman.

The railroads can't legally lock us out so they're resorting to extortion, according to a rail labor union spokesman. Shippers want Congress to intervene in the supply chain. Congress can't cave.

The last time Congress acted was in 1992 after the machinists union went on strike. The return to work bill was signed by Bush.

When it comes to breaking the backs of their employees, these self-appointed titans of industry are the only ones who complain. The federal government needs to tell the CEOs of the nation's railroads that enough is enough. Congress shouldn't be involved in the rail dispute and should tell the railroads to bargain a contract with their employees in mind.

Both the railroads and labor unions told CNBC that negotiations will continue Monday. On Friday, the unions can go on strike.