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Meat industry is watching railroad labor issue closely

Meat producers, processors, and exporters hope the railroads and their employee unions can quickly end their labor dispute.

Joe Schuele with the U.S. Meat Export Federation tells Brownfield around 15% of U.S. meat utilizes inland rail transportation, but transportation is all interconnected and a disruption in one area impacts other forms of transportation. “The vast majority would move by truck. We would see some major interruptions if there is a rail strike. All of agriculture is rightfully concerned about that possibility.”

Schuele says the meat processing industry has been forced to be nimble over the last few years to move its products.

Allison Rivera with the National Cattlemen’s Beef Association tells Brownfield railroads seldom transport cattle, but they’re vital for supplying inputs. “It’s a huge sector of the overall supply chain, of the transportation around this country, and the thought of not being able to move feed efficiently and timely, which is something we’ve continued to keep an eye on, is certainly a scary situation and one we’re certainly concerned about.”

And she doesn’t want existing supply chain issues to get worse. “And something like a strike in the rail space would certainly cause major, major issues on top of other issues we’re having in the supply chain. It would be very, very detrimental.”

Rivera says NCBA needs all parties to come to an agreement and resolve issues to protect their producers.

Schuele says there has been some progress in negotiations. “Some more rail unions on Sunday came to a contract agreement so we’re hoping the whole situation can be avoided, but certainly, our members are looking at some contingency plans.”

There are still two unions that have not reached an agreement with the railroads, and workers might walk out as early as Friday.  One of them, The International Association of Machinists and Aerospace Workers said its 4,900 members voted to reject the latest offer Wednesday.