President Joe Biden announced in September that he had negotiated a deal between freight rail companies and unions after 20 hours of talks, averting a massive strike that could have far-reaching consequences for American consumers. The deal was seen as a big political win for Biden and Democrats ahead of the midterm elections.
Tony Cardwell, president of the Brotherhood of Maintenance of Way Employees Division (BMWED), announced on Monday that a majority of the union had voted against ratifying the deal, delivering a blow to the efforts to prevent a strike.
Cardwell said in a statement that 6,646 members had voted against ratifying the deal, while 5,100 voted in support.
The deal offered 24 percent raises and $5,000 bonuses for workers. However, many union members felt the deal did not sufficiently address efforts to increase paid time off and sick leave, Cardwell said. Before Biden stepped in, disputes over quality-of-life issues like vacation and sick days were among the topics disputed during negotiations.
“Railroaders are discouraged and upset with working conditions and compensation and hold their employer in low regard,” the statement read. “Railroaders do not feel valued. They resent the fact that management holds no regard for their quality of life, illustrated by their stubborn reluctance to provide a higher quantity of paid time off, especially for sickness.”
He wrote that the rejection indicates “there is a lot of work to do to establish goodwill and improve the morale that has been broken by the railroads’ executives and Wall Street hedge fund managers.”
Four other unions have approved the agreements with freight railroads. The International Association of Machinists and Aerospace Workers initially rejected a deal but renegotiated a new contract, according to the Associated Press. However, all 12 railroad unions must agree to the deal to avoid a strike.
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.
But the full extent of a possible strike would likely not be felt until after the November 8 midterm elections. Cardwell said the union is extending its “status quo” period to allow time for additional negotiations until November 19, 10 days after the elections.
A White House spokesperson told Newsweek in a statement that the extended deadline gives them “adequate time to continue their work and ensuring that our economy is under no immediate threat.”
“The President remains focused on avoiding a rail shutdown, and both sides have said they share that desire. We stand ready to support the parties in their efforts, and continue to urge both sides to finish their work and avoid even the threat of a shutdown in the future,” the statement said.
Newsweek reached out to the BMWED for comment.
Update 10/11/22, 9:10 a.m. ET: This story was updated with a statement from the White House.