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A BNSF rail terminal worker monitors the departure of a freight train in Galesburg, Ill.
An 11th-hour aversion of a freight rail strike is being hailed as a win for workers, consumers and Northwest Indiana industry that's heavily reliant on rail transportation.
As anyone ever stuck behind a train can attest, Northwest Indiana is home to more than 700 miles of rail, including two of the nation's most heavily traveled rail lines that average more than 100 million gross ton miles.
The International Association of Sheet Metal, Air, Rail and Transportation Workers and the Brotherhood of Locomotive Engineers and Trainmen negotiated a tentative deal with the major Class 1 railroads that raises pay by 24% over five years and includes $5,000 bonuses. It does not increase copays or deductibles and allows for time off after some medical events.
The workers were set to go on strike after a 30-day cooling-off period Friday if no pact was reached.
"The solidarity shown by our members, essential workers to this economy who keep America’s freight trains moving, made the difference in our unions obtaining agreement provisions that exceeded the recommendations of the Presidential Emergency Board. We listened when our members told us that a final agreement would require improvements to their quality of life as well as economic gains," Jeremy Ferguson, SMART Transportation Division president, and Dennis Pierce, Brotherhood of Locomotive Engineers and Trainmen president, said in a joint statement. "As a result, this agreement includes agreement provisions that will create voluntary assigned days off for members working in through-freight service, and all members will receive one additional paid day off. Most importantly, for the first time ever, the agreement provides our members with the ability to take time away from work to attend to routine and preventive medical care, as well as exemptions from attendance policies for hospitalizations and surgical procedures."
Indiana University Northwest assistant professor of economics Micah Pollak said it was a meaningful gain for organized labor.
"Over the last few years, due to the pandemic and the following 'Great Reassessment of Work,' we have experienced what may be the largest shift of market power from employers back to workers since the Great Depression. As a result, we have had one of the most significant and broad increases in wages and benefits for works in decades, coupled with expanding unionization," Pollak said. "Workers have become a scarcer and more valuable asset, which strengthens the negotiation position for all workers, and especially those who are unionized."
Northwest Indiana is crisscrossed by freight rail lines serving heavy industry, though many are run by CN, CSX and other companies not involved in the negotiations. An estimated 16% of the freight moved through Northwest Indiana is by rail, according to NIRPC.
The Region is home to a Norfolk Southern mainline that would have been affected if no deal were reached. A strike could have been disruptive as rail is used to ship steel, oil and countless other products in Northwest Indiana.
The area is home to a cluster of rail not only because of all the heavy industry but because many of the national rail lines pass through Chicago, a historic rail hub, and south under Lake Michigan.
"Indiana is known as the Crossroads of America for a reason and a big part is due to our freight rail network," Ports of Indiana spokeswoman Jennifer Hanson said. "A rail strike would have affected all three of our Indiana ports, as our tenants and customers rely on rail for many deliveries with commodities related to the manufacturing, steel, construction, agricultural and energy industries. The rail supply chain being further disrupted would have increased pressure on an already stressed national network."
Amtrak and Metra have resumed rail service after announcing suspensions in anticipation of a strike.
"We are happy to report that in the overnight hours a tentative agreement was reached between freight railroads and their unions, averting a strike that could have started tonight and halted service on the BNSF and three Union Pacific lines. We are greatly relieved that we will be able to continue to provide the safe and reliable service that you deserve and that you rely upon," Metra spokesperson Jarica Griffin said. "Please accept our apologies for this week of uncertainty and anxiety, and our thanks for your patience and understanding. The late Thursday evening trains that had been cancelled by BNSF and Union Pacific in anticipation of a strike will now run as scheduled."
Consumers potentially would have suffered from further inflation if there were a major disruption in freight rail service, Strack & Van Til Chief Operating Officer Dave Wilkinson said.
"While we don’t directly receive product, supplies or equipment by rail, many of our manufacturers and suppliers do," he said. "A strike would have created another bottleneck in an already stressed supply chain and delayed deliveries on many products stocked in our stores. There is already a critical shortage of truck drivers. A strike would put more pressure on truck transportation, causing more delays and higher costs."
The National Retail Federation said a freight rail strike potentially would have been devastating to retailers, consumer spending and the economy at large at a time when the coronavirus pandemic already has upended many supply chains that are still recovering.
“We are relieved and cautiously optimistic that this devastating nationwide rail strike has been averted. We appreciate the Biden administration’s intervention on behalf of the businesses and consumers who would have been impacted at a time when high inflation and economic uncertainty are challenging consumer budgets and putting business resiliency at risk," President and CEO Matthew Shay said. “We hope railway workers will accept the new terms of the proposed contract and the railway system can continue to operate on behalf of the millions of hardworking Americans who rely on it for their jobs and the economic security of our country.”
The new deal still must be ratified by workers.
Members of Famous Athletics, a competitive cheerleading school, warm up Saturday prior to the Valparaiso Popcorn Festival parade. The 2022 parade drew 105 entries.
Donna Flanagin, right, as the fairy “gladmother,” photographs Mallory Simonek, 6, as Cinderella, beside Flanagin’s float Saturday in the Valparaiso Popcorn Festival parade.
Members of Valparaiso American Legion Post 94 participate Saturday in the Valparaiso Popcorn Festival parade.
Dancers with Ballet Folklórico Yolotzin were among the acts that performed at an inaugural Empanada Fest held Saturday in Whiting.
Calumet College of St. Joseph students bow their heads in prayer during the blessing Friday of the first residence hall at the school.
Spectators in the stands at TF South's Padjen Field wait to exit the grounds on Friday night as the area was evacuated after police were alerted to a threat of violence.
TF South's Jaylen Taylor, middle, celebrates with teammates after making an interception against TF North during Friday night's matchup in Lansing.
Crown Point's Landen Delich and Nicholas Solely celebrate Delich's touchdown.
Covered by Lake Central's Max Welty, Crown Point's Raymond Santiago pulls down a pass from JJ Johnson. The play was called back, however, on a Crown Point penalty.
Valparaiso’s Justin Clark (5) is caught as he tries to get rid of the football by Michigan City’s Cameron Bell (1) in the third quarter at Ames Field in Michigan City Friday night.
Valparaiso’s Jackson Kopp (93) kicks off after a Valparaiso touchdown against Michigan City in the first half at Ames Field in Michigan City Friday night. The Wolves and Vikings played to a 14-14 tie with Valpo breaking it open in the second half for a 35-14 win.
Munster’s Kylie Meegan (5) passes the ball off against Valparaiso’s Elizabeth Fields (19) in the first half at Valparaiso High School Thursday night.
Valparaiso’s Elizabeth Fields (19) controls the ball against Munster’s Gabriela Maldonado (16) in the first half at Valparaiso High School Thursday night.
Valparaiso’s Hailey Stemple (16) celebrates her goal in the first half with Aubrey Brown (3), Fiorella Cespedes (7) and Rebecca Mathisen (11) against Munster Thursday night.
Valparaiso keeper Jemila Townsend (0) corrals a Munster shot on goal in the first half at Valparaiso High School Thursday night.
Nathan Pisarski, left, and Chris Jaco have the daunting task of deflating all the tubes at Deep River Waterpark and storing them until next year.
Vista Fletcher, Midwest regional administrator with the USDA, asks O'Bannon Elementary kindergartners about their favorite school meals.
Crown Point’s Helen Swinford (15) tries to stop Valparaiso’s Kennedy Wagner (14) at the net in the third game at Valparaiso High School Tuesday evening.
Valparaiso’s Kyla Coolman (10), Kennedy Wagner (14) and Becca Gerdt (9) celebrate a point against Crown Point at Valparaiso High School Tuesday evening.
A team of six horses pulling a wagon was a new Labor Day parade entry this year.
Antique cars and trucks are a big hit at the Malden Labor Day Parade.
Morgan Township's student band performs on a float during Monday's Labor Day Parade in Malden.
Gracie Frampton, 4, is in pink as Minnie Mouse on Sunday at the 68th annual Lowell Labor Day Kiddie Parade.
Cooper Miller, 1, came with his brother Corey, 5, as road construction workers Sunday for the 68th annual Lowell Labor Day Kiddie Parade.
Brooks Baird, 2, is dressed as Buzz Lightyear in a homemade spaceship Sunday for the 68th annual Lowell Labor Day Kiddie Parade.
Participants on the United Steelworkers Local 1010 float enjoy the ride as they near the conclusion of Lowell's Labor Day Parade route Sept. 5.
The Lions Club mascot makes a new friend as it walks down Commercial Avenue during Lowell's Annual Labor Day Parade on Monday morning.
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Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.
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A BNSF rail terminal worker monitors the departure of a freight train in Galesburg, Ill.
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