Two more rail labor unions have reached tentative agreements with Class One railroads, leaving the U.S. grain industry hopeful a strike can be avoided.
The latest include the International Brotherhood of Electrical Workers and the American Train Dispatchers Association. Together they represent approximately 6,000 freight rail employees. This brings the total to five of 12 unions that have announced tentative agreements.
Officials in the grain industry are hopeful that will continue to cause a domino effect that will avert a strike on September 16. If not U.S. farmers will face a real disaster, even if the strike were to only last a few days.
Jon Setterdahl, Landus, Product and Services Leader says “If a strike happens, it would be frankly, couldn’t come at a worse time here. right on the cusp of a harvest activity.” And he says that would have a negative impact on cash prices for farmers. “Yeah, it freight is not available or if it is available on a very limited basis and the price rate goes higher as a result that would have a detrimental effect on the basis.”
However, Setterdahl says even without a strike rail service has been horrendous. It improved slightly after the April Surface Transportation Board hearing but now he says it’s the worst it has been.
