More avoidable supply chain issues coming soon...

I recently came into possession of a letter from the Presidents of the SMART Transportation Division and the Brotherhood of Locomotive Engineers and Trainmen. The letter details an alleged attempt by the leading rail companies to intentionally gridlock the supply chain in order to extort a contract settlement from the rail unions.

Late on Friday, September 9, the nation’s largest railroads began warning major shippers that they are declaring an embargo on certain types of new shipments five days in advance of the end of the federally mandated cooling-off period at 12:00 AM EDT September 16. They further advised that all rail shippers could be blocked from making any rail shipments well in advance of next Friday’s deadline for a lockout or strike.

If true, the rail companies are going to put embargos on certain types of shipments and may block ALL shipments prior to the federally mandated 5 day cooling-off period for contract negotiations. The rail companies are hoping for federal intervention, who in the face of nationwide supply embargos, would likely side with the owners rather than the workers.

The workers aren't asking for much to be honest. One thing they have a high priority on is that they no longer be terminated for getting sick or going to a doctor appointment.

Penalizing engineers and conductors for getting sick or going to a doctor’s visit with termination must be stopped as part of this contract settlement. Let us repeat that, our members are being terminated for getting sick or for attending routine medical visits as we crawl our way out of worldwide pandemic.

I understand this letter is written from the union presidents perspective and is definitely not going to flatter the rail companies. However, there must be some truth to it since the controversial topics will be made public, as well as who is willing to negotiate and who isn't.

Of course, there is always the lingering thought that this is in some way connected to trucking gridlock, container ship gridlock, etc. In fact, the rail lines are really the last big domino to fall.

Statement by
Jeremy Ferguson, President
SMART Transportation Division
and
Dennis Pierce, President
Brotherhood of Locomotive Engineers and Trainmen
Teamsters Rail Conference
on: Move announced by the nation’s largest railroads today to further abuse shippers and gridlock the supply chain in order to extort a contract settlement from rail unions

Late on Friday, September 9, the nation’s largest railroads began warning major shippers that they are declaring an embargo on certain types of new shipments five days in advance of the end of the federally mandated cooling-off period at 12:00 AM EDT September 16. They further advised that all rail shippers could be blocked from making any rail shipments well in advance of next Friday’s deadline for a lockout or strike. This completely unnecessary attack on rail shippers by these highly profitable Class I railroads is no more than corporate extortion. Our Unions remain at the bargaining table and have given the rail carriers a proposal that we would be willing to submit to our members for ratification, but it is the rail carriers that refuse to reach an acceptable agreement. 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, but they cannot legally lock out our members until the end of the cooling-off period. Instead, they are locking out their customers beginning on Monday and further harming the supply chain in an effort to provoke congressional action.

The railroads are using shippers, consumers, and the supply chain of our nation as pawns in an effort to get our Unions to cave into their contract demands knowing that our members would never accept them. Our Unions will not cave into these scare tactics, and Congress must not cave into what can only be described as corporate terrorism.

Rather than gridlock the supply chain by denying shipments and potentially locking our members out next Friday, the railroads should work towards a fair settlement that our members, their employees, would ratify. For that to happen, we must make improvements to the working conditions that have been on the bargaining table since negotiations began. Penalizing engineers and conductors for getting sick or going to a doctor’s visit with termination must be stopped as part of this contract settlement. Let us repeat that, our members are being terminated for getting sick or for attending routine medical visits as we crawl our way out of worldwide pandemic.

No working-class American should be treated with this level of harassment in the workplace for simply becoming ill or going to a routine medical visit. Sadly, the Presidential Emergency Board recommendation got it wrong on this issue. As we have said from the day that they were implemented, these policies are destroying the lives of our members, who are the backbone of the railroad industry.

These employment policies have forced thousands of employees out of the industry and make it all but impossible to recruit new workers. With understaffed operations, these railroads abuse their best customers by refusing to provide deliveries consistent with their legal obligations. These self-appointed titans of industry complain constantly about government regulation and interference -- except now when it comes to breaking the backs of their employees. It’s time for the federal government to tell the CEO’s who are running the nation’s railroads into the ground that enough is enough. Congress should stay out of the rail dispute and tell the railroads to do what other business leaders do -- sit down and bargain a contract that your employees will accept.

Is this for real? Sounds made up. since we can't see the letter to suppliers, I can't believe the rail lines will embargo anything. They might, as a warning, send a letter stating that a strike is likely and get prepared to find another way to ship.

About termination for going to a doctor, that's absurd. No corporation in the modern world will do that and get away with it. There's more to the story or this is BS.

What is with all this mandate #?

Whatever happened to laws?

Yknow.
Those things that people we vote for actually debate and put into practise for the betterment of the populace?

a reply to: Vroomfondel

Well a crisis must be created and blame placed before a solution is offered 😎🦴🦮

a reply to: Vroomfondel

our members are being terminated for getting sick or for attending routine medical visits

That is # up on so many levels. If that's the future I say # tear it down and tear it down now, burn it all.

a reply to: LogicalGraphitti

Not, its not made up.

At present there are numerous embargoes currently active, most recently hazardous or security-sensitive materials they do not want stranded on a rail car somewhere in the event of a shutdown. The rail companies are also saying other customers could see service disruptions as early as Tuesday as they prepare for a possible shutdown. Of course, the rail companies blame the unions and the unions blame the rail companies.

The terminations are real. It is hard to believe, but a lot of things happening right now are hard to believe. If you insist it is not happening, the names of the Unions and their presidents are at the top of the letter. Perhaps you should take it up with them and let us know what you find out. The letter in question was forwarded to me with the complete history attached. I have no doubt whatsoever about the authenticity of the letter. I was made aware of one method in which this is happening. An employee receives an injury at work. He is coerced into not filing the report with all the usual threats of "official investigations" and so on. If the injury is severe enough the employee seeks medical treatment. He is then accused of filing false information potentially leading to fraud and his status for being off work is listed as "sick" rather than injured.

On the positive side, it appears, at least to the rail companies, that several of the unions have reached tentative agreements. Hopefully, if an agreement is made, there will not be any significant interruptions in service.