US supply chain under threat as unions, railroads, clash

Freight train generic

OMAHA, Neb. (AP) — Railroad engineers accepted their deal with the railroads that will deliver 24% raises but conductors rejected the contract.

The votes threaten the health of the economy just before the holidays and cast more doubt on whether the industry will be able to resolve the labor dispute before next month’s deadline without Congress’ help.

Monday’s votes by the two biggest railroad unions follows the decision by three other unions to reject their deals with the railroads that the Biden administration helped broker before the original strike deadline in September.

Seven other smaller unions have approved the five-year deals that include 24% raises and $5,000 in bonuses. But all 12 must approve the contracts to prevent a strike.

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