Rail unions reject White House deal, as December 9 strike deadline approaches

One of the country's largest rail unions has rejected a White House proposal to better pay, increasing the likelihood of an industry-wide strike just before the holidays that would kneecap America's supply chain. 

SMART Transportation Division, which represents 36,000 of the country's rail workers, rejected the deal on Monday morning in an ongoing dispute over sickness and attendance policies. 

BLET, the Brotherhood of Locomotive Engineers and Trainmen, has 24,000 members and voted to ratify the deal but said it would join the picket line with SMART if they continue to refuse the new terms. 

'We stood shoulder to shoulder with our brothers and sisters in SMART-TD and others in rail labor throughout this process and we will continue to stand in solidarity with them as we approach the finish line in this round of negotiation,' Union President Dennis Pierce said. 

Combined, it means 57,000 workers would walk on December 6. That accounts for over half of the country's rail workers. The deal affects workers at three of the country's rail carriers - BNSF, Union Pacific and CSX. 

The Association of American Railroads previously estimated that a strike could cost the US $2billion a day

Biden championed the deal and brought negotiators and members of his own team to the Rose Garden for a brief speech

The unions had threatened to strike earlier this year, prompting President Biden to broker a deal between workers and corporations. 

In September, they agreed on a peace-period which ends at midnight on December 5. 

Biden touted it as a victory and held a press conference in the Rose Garden. 

'This is a great deal for both sides. In my view,' he said. 

The Biden administration's solution was to put forward a deal that increased worker's pay and gave them bonuses. As a result, the average salary of a rail worker increased by 24 percent to $110,000 by the end of 2025. 

But the workers were stuck on issues including paid sick leave and attendance. 

Now, with a Republican House looming, the likelihood of a strike is matched only by the likelihood of Congress having to intervene to avoid a supply chain crisis.

'Let's be clear, if the remaining unions do not accept an agreement, Congress should be prepared to act and avoid a disastrous $2billion a day hit to our economy,' Ian Jefferies, President of the Association of American Railroads, said on Monday. 

'What a terrible Christmas gift that would be to give to the American people at this point. Right before Christmas, shutting down our supply chain. 

'So we’ve got something prepared if necessary, but I’m hoping it’s not necessary,' Rick Crawford, the top Republican on the House subcommittee that looks after railroads, told Politico.

The Association of American Railroads previously estimated that a strike could cost the US $2billion a day. It could interrupt deliveries of drinking water and coal.