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Breaking: Rail Union Rejects Tentative Agreement; Strike Looms


Earlier this afternoon, the Brotherhood of Maintenance of Way Employees Division (“BMWED”) announced that 56% of its workers had rejected a temporary agreement recently brokered by the Biden Administration.

What does this mean?  Let’s first take a step back.  In recent weeks, the Biden Administration sat major freight rail operators and unions down to hash out an agreement over a new labor contract.  While a tentative agreement was reached, there was hesitation over whether all parties (namely the workers) would validate and approve the deal.  Workers had long grumbled that they experienced poor working conditions and inadequate pay.  From their viewpoint, the tentative agreement did not allay those concerns.

Lo and behold, this afternoon’s news confirms as much.  With 56% of BMWED workers voting against the agreement, it appears any “victory lap” by the Biden Administration over a deal being reached is short lived.  At this point, there is a growing belief that a strike among rail workers will take place in the coming weeks, threatening to bring the economy to a screeching halt heading into the Christmas season.

I will note, that just because the tentative agreement has been struck down, that does not necessarily mean a strike will happen.  As suggested, while a strike appears imminent, and organized labor is certainly saber rattling, I expect all parties will come back to the bargaining table and restart negotiations in the coming weeks.  The Biden Administration is certainly likely to play a key role again as it seeks to right a shaky economy and seek a win headed into the midterms.

Buckle up thought, the next few weeks should prove to be rather bumpy.


For additional information:  https://www.nbcnews.com/business/business-news/rail-union-rejects-labor-deal-brokered-biden-administration-whats-next-rcna51543

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