WASHINGTON, DC, Oct 17 — Brace yourselves for another “inflationary surprise.” The threat of a disastrous railway strike still looms despite President Biden’s boast that he settled the matter last month. It turns out that the president was premature in taking credit for a settlement. The Brotherhood of Maintenance of Way Employees [BMWE] has issued a statement that its members voted down the so-called Biden deal “resetting the countdown to a potential work stoppage.” And although the BMWE is just one of the 12 union’s involved, its labor attorney, Richard Edelman, told CBS News that “if one of the unions strikes everybody will honor the picket line.”
The union says it ready to negotiate with railroad managements but if they still cannot work out a deal it could mean a strike in late November. Meanwhile, the two biggest rail unions — the Sheet Metal, Air, Rail, Transportation union and the Brotherhood of Locomotive Engineers and Trainmen — may also decide to go on strike. CNN reports that “Online chatter among the conductors union and engineers union members signal they want a strike before even seeing the contract, while some are calling for reason, the source said. Conductors union and engineers union members will be mailed ballots later this month with a 21-day voting period. Results of those votes should be known in mid-November, just before the BMWE could be going on strike without a new deal.”
And according to Newsweek, “all 12 railroad unions must agree to the deal to avoid a strike.” That report went on to say “The economic impacts of a strike would be far-reaching and devastating to many Americans. More than 1 million jobs are tied directly to railroads, and trains that transport goods across the U.S. would be forced to sit idle, potentially resulting in $2 billion in lost trade each day, according to the Association of American Railroads…Worries about a strike could add to already existing economic concerns felt by millions of American voters ahead of the midterms. Voters consistently name inflation and the economy among their top issues ahead of the midterms, in which both parties see a path to victory.”
A new Rasmussen poll shows how important a role inflation may play in the November elections. It shows that inflation is top of mind for a massive 89% of likely U.S. voters. The Rasmussen survey also showed that “Sixty percent now say the policies of President Joe Biden’s administration have increased inflation, a finding just slightly changed since May. Only 13% believe Biden’s policies have decreased inflation, while 23% think Biden’s policies have not made much difference in inflation.”
Biden intervened in negotiations between the railroads and the workers’ unions on September 15, announcing at the end of the meetings that a deal had been done. He told reporters: “This is a win for tens of thousands of rail workers, and for their dignity — and the dignity of their work.” And so as NBC News described it: “For the president and fellow Democrats, the deal offers a measure of political relief after fears that the economic fallout from a strike could further squeeze households hit by stubbornly high inflation.” And that is pretty scary.
For example, should a strike take place, The Hill says that among other things, it will have a negative impact on food production and gas supplies among other necessities. According to its report, trains transport 1.6 million carloads of food annually and they are a critical transporter of ethanol and crude oil as well.