Large rail union SMART-TD votes to reject labor deal as national strike moves closer

An aerial view of shipping containers and freight railway trains at the BNSF Los Angeles Intermodal Facility rail yard in Los Angeles, California, September 15, 2022.

There is a chance of a strike in December after the SMART-TD union voted down the tentative agreement. The BLET will honor the picket line despite voting to approve the labor deal.

BLET President Dennis Pierce said, "We stood shoulder to shoulder with our brothers and sisters in rail labor throughout this process and we will continue to stand in solidarity with them as we approach the finish line."

The Brotherhood of Maintenance of Way Employees is represented by the BMWED. If one of the larger unions votes against the tentative labor deal, BMWED will extend its cooling off period. The BRS hasn't said if it will extend its deadline.

More than half of rail labor is represented by SMART-TD, BMWed, and BRS.

BMWED and BRS are having more talks with railroad carriers on Monday.

Pierce and Ferguson traveled the country together to explain the deal to union members. The unions attribute the record turnout to the presidents meetings.

Approximately 24,000 locomotive engineers and trainmen are members of the BLET. The BLET is one of the founding members of the rail conference.

The union also represents brakemen, yardmen, engine service employees and yardmasters, who are voting on a separate contract, despite the fact that most of the members of the transportation division are conductors. There are over 30,000 members of SMART-TD. Each union group needs to individually agree to the tentative agreement to approve it.

According to the American Chemistry Council, a rail strike would result in a GDP decline and renewed inflation.

The threat of a strike caused the railroads to stop accepting chemical shipments in the week of September 10. If an embargo were to happen this month, we would expect a reduction in chemical shipments.

There are industries that warn of the economic risks of a strike. A strike could cost the rail industry $2 billion a day. All of the rail operators would be affected by a strike.

The biggest customer of the rails, United Parcel Service, said in a statement that it has the ability to help manage the situation if an agreement is not reached. In order to minimize unexpected disruptions for our customers, we use our network planning tools to coordinate across our facilities around the world.

If the BRS sticks with their strike date of December 5, strike preparation is expected to start on November 28. The house is back on the hill.