Consumers could pay price if railroads, unions can't agree

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Consumers could pay price if railroads, unions can't agree
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Consumers could quickly start seeing higher gas prices and shortages of some of their favorite groceries if railroads aren’t able to agree on contracts with al 12 of their unions ahead of next month’s deadline after the latest rejection vote Monday.

FILE - This April 2, 2021, file photo shows freight train cars and containers at Norfolk Southern Railroad's Conway Yard in Conway, Pa. Railroad engineers accepted their deal with the railroads that will deliver 24% raises but conductors rejected the contract casting more doubt on whether the industry will be able to resolve the labor dispute before next months deadline without Congress help. The votes, Monday, Nov.

Even getting close to the deadline could cause problems because railroads will freeze shipments of chemicals and perishable goods ahead of time. And commuters could be stranded if there is a strike because so many passenger railroads operate on tracks owned by the freight railroads.could be affected because so many businesses need railroads to deliver their raw materials and completed products. And there aren't enough trucks to pick up the slack.

The railroads also lost out on their bid to cut crew sizes down to one person as part of the negotiations. But the conductors in the Transportation Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers union still narrowly rejected the deal with roughly 51% voting against it. A smaller division of the SMART-TD union that represents about 1,300 yardmasters did approve the deal.

The group that negotiates on behalf of the railroads said Monday that the unions that rejected their deals shouldn't expect to receive more than the Presidential Emergency Board of arbitrators recommended. The National Carriers Conference Committee said businesses could start to be affected by the threat of a strike even before the deadline because railroads will start curtailing shipments of dangerous chemicals and perishable cargo days ahead of the deadline.

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