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Agriculture watches next step in railroad labor dispute

An agricultural leader says now that the three-member Presidential Emergency Board has recommended a compromise to resolve the railroad labor dispute, the railroads and their employee unions should try again to work out their differences.

Mike Steenhoek with the Soy Transportation Coalition tells Brownfield if a strike, lockout, or slowdown happens after the 30-day cool-off period in mid-September, both sides would likely lose confidence. “Inserting more unpredictability into the supply chain would really be a recipe for disaster right now and I think everyone loses. There would be a lot of frustration directed at both parties, so I don’t think it’s in anyone’s interest to really push it too far. I think getting a resolution is in everyone’s best interest.”

Steenhoek says right now, there’s a lot riding on the shoulders of the American farmer. “There’s a lot of global food insecurity and so a lot of people’s attention is on how productive U.S. agriculture is going to be this year, and farmers are up to the challenge, but we’ve got to be able to have our supply chain able to keep pace with the productivity of the American farmer.”

The President’s Emergency Board recommended a 24% wage increase for railroad workers over five years.  The railroads’ proposed a 17% wage increase over five years and the unions’ proposed a 31.3% increase over five years.  The board also recommended $1,000 a year “service recognition bonuses” and adjustments to health care premiums.  A railroad employee who chose to remain anonymous told Brownfield the $1,000 service recognition bonuses look nice on paper, but most of that would go to the government in taxes so they would be better off with an equivalent pay increase.

If an agreement is not achieved, a strike or lockout after September 16^th is possible.