Potential U.S. Rail Strike Back on the Table

October 11, 2022 | The Toy Association is alerting members that the tentative deal reached to avert a nationwide strike of U.S. railroad workers may now be at risk of reversal.

On October 10, membership of the Brotherhood of Maintenance of Way Employees Division of the International Brotherhood of Teamsters (BMWED) voted against ratifying the tentative agreement they reached with the Class I freight railroads, sending the two sides back to the bargaining table.

In doing so, the countdown to a potential work stoppage has been reset. Both sides have agreed to maintain a “status quo” period, which will extend to five days after Congress reconvenes on November 14. Per those terms, there will be no further discussions or assessments of next steps between the parties until November 19.

At the present time, the failed ratification does not present risk of an immediate service disruption according to the National Carriers’ Conference Committee, which represents the nation’s freight railroads in national collective bargaining. Four labor groups have already ratified agreements since September with seven tentative agreements remaining subject to ratification.

With a report by the Association of American Railroads previously estimating that a nationwide rail service interruption could cost the U.S. economy more than $2 billion per day, The Toy Association’s Global Government & Regulatory Affairs team is engaged on the issue and is continually assessing potential member impacts from the situation. Members are encouraged to bookmark The Toy Association’s Shipping Crisis Resource Center for the latest updates.