LANSING, Mich. (Michigan News Source) – A possible nationwide railroad worker strike next week could wreak havoc on the nation’s economy, and have a devastating effect on Michigan.

Negotiations are currently underway between rail companies and unions, with only five of the 13 unions involved currently agreeing to a tentative agreement offered in July by President Biden’s Presidential Emergency Board (PEB).

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The five-year contract being negotiated covers about 115,000 rail workers. The deal gives the workers 24% pay raises, back pay and cash bonuses. However, they are also interested in making changes to their contract that will address the long hours and harsh schedules they are forced to work. Workers complain about not being able to get time off, being disciplined when they miss a day and not having adequate notice before starting long shifts.

The trains are understaffed and the workers are fatigued and overworked because approximately 45,000 rail workers have been laid off in the past six years (more than 30% of the workforce) and staffing shortages persist as they currently do in all other industries.

If a permanent agreement isn’t reached by Friday, September 16th by midnight, the economy of the country could be impacted in a substantial way, crippling an already fragile supply chain and bringing the country to a halt ahead of the midterms and the holiday season.

According to CNBC, 467,000 trucks would be needed per day to handle the freight that is moved by trains and without that happening the products around the country and the shipping containers at the ports wouldn’t be moving.

The Association of American Railroads (AAR) says that a rail shutdown would cost the economy about $2 billion dollars a day and in their press release they noted that a strike would “immediately harm every economic sector by rail” and “trigger retail product shortages, widespread manufacturing shutdowns” and “job losses.”

Nicholas Little, Director of Railway Education at Michigan State University’s Center for Railway Research and Education says, “The railroads are actually very critical to the nation’s economy and also to security. There’s a lot of hazardous stuff that simply can’t go by road.”

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UPS is one of the largest rail customers that would be affected by a strike, with a container on a train holding 1,800 to 2,000 packages.

Additionally, farmers would be put in a bind as a letter from The Fertilizer Institute says in a letter to Congress sent on September 7th. They stated, “Over half of all fertilizer moves by rail year-round throughout the United States and the timeliness and reliability of fertilizer shipments is absolutely critical. If farmers do not receive fertilizer, it results in lower crop yields, higher food prices, and more inflation for consumers.”

In Michigan, according to the Michigan Railroads Association (MRA), 75% of all finished automobiles are moved by rail plus many auto parts and supplies. Other commodities moved in Michigan include energy, timber, chemicals, agriculture, intermodal and construction industry goods. Across the United States, rail also moves things like grain,
coal, diesel and steel.

The MRA is a non-profit trade association that represents the interests of freight railroads operating in Michigan and their members account for 95% of all freight rail moved in Michigan.

The MRA reports that freight rail is one of the most fuel efficient modes of freight transportation, four times more efficient than trucks, and that freight trains move one ton of freight an average of 476 miles on a single gallon of fuel.

According to The Detroit News, the Michigan freight rail network includes 28 railroads and over 2,600 track miles and is “often overlooked in infrastructure conversations but it is critical to our economy.”

They also report that for each of the nearly 3,400 direct freight rail jobs in Michigan, another 6.5 more jobs are supported by rail across the state and rail accounts for total of 1.1 million jobs across the country.

Federal law gives the power to Congress to block a railroad strike so they would be able to enact the PEB deal or fast track a new contract. During a political year with an election coming up, it’s unknown if the Democrats would force a decision that goes against one of their voting bases – the unions.

The chant of “I’ve Been Working on the Railroad” might turn into “Take This Job and Shove it” by the end of next week depending on the outcome of the negotiations and government intervention.