Two major rail unions are preparing to go on strike, which could cause significant disruptions to the U.S. supply chain.
As some freight-rail workers could go on strike at the end of the week, some of Amtrak’s longest routes have been suspended.
Although the negotiations do not include Amtrak or its employees, Amtrak runs most of its trains outside the northeast on tracks operated by the freight-rail industry. “It is the rail carriers that refuse to reach an acceptable agreement,” the unions said in a statement. “In fact, it was abundantly clear from our negotiations over the past few days that the railroads show no intentions of reaching an agreement with our Unions.”
During that time, the Presidential Emergency Board came up with a recommended contract for the sides, which included a 24% compounded wage increase during the five-year period from 2020 through 2024, with a 14.1% wage increase effective immediately for union employees. The retroactive pay increase would provide an average of $11,000 per employee in back pay.