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.

According to the National Carriers' Conference Committee, eight of the 12 unions have reached tentative agreements with the railroads. 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 what's called a "Me Too" agreement.

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.

"Idling all 7,000 long distance daily freight trains in the U.S. would require more than 460,000 additional long-haul trucks every day, which is not possible based on equipment availability and an existing shortage of 80,000 drivers." 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 ramp down our network and bring service back quickly.

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

"Operational changes required to prepare for a safe, orderly suspension were delayed as long as possible," the spokesman wrote. With less than a week before a potential service interruption, carriers are obligated to take appropriate actions to prepare, which include making plans for handling HAZMAT shipments, as well as other freight that may be impacted if service must be reduced or stopped." Contingency planning includes notifying customers.

The time has arrived when certain customers will 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.

"These self-appointed titans of industry complain constantly about government regulation and interference, but now when it comes to breaking the backs of their employees, they are the only ones who complain," the BLET said in a statement. 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.