A train heads past a rail crossing on Alabama Street in this October photo. If looming railway union strikes come to pass, it would be a significant setback for local businesses like Lifeline Foods that do a majority of their shipping on freight lines.
A train heads past a rail crossing on Alabama Street in this October photo. If looming railway union strikes come to pass, it would be a significant setback for local businesses like Lifeline Foods that do a majority of their shipping on freight lines.
Companies that rely on rail service are bracing for the possible impact of a strike that would cripple supply lines.
Many companies in the area, particularly agri-based ones, use the rail systems to transport as a primary means of transporting goods, Lifeline Foods CEO Kevin Kelly said. About 80% of Lifeline’s product is shipped using train lines.
“Clearly if there’s a strike, we are going to be significantly impacted,” he said. “We’re not alone. Anybody else in our space and in the agri-business industries, plural, there is going to be a devastating effect if this is a strike.”
Four railway unions rejected a proposed deal last week over concerns with getting better sick pay and time off. Several other unions had accepted the proposal but they also would join the strike if even one union decides on that action.
Having a few days away from discussions could improve the odds of getting a deal done, said Kelly, who has experience with union negotiations.
“It’s literally called a cooling-down process,” he said. “Thanksgiving is when we’re going to see what kind of progress can be made behind the scenes, but if something isn’t done by Dec. 5, what’s going to happen? We would like to think everybody has a happy holiday — both sides, the big railroads and the unions — and comes back fresh and ready to do business. But it remains to be seen.”
The date set to have a deal by is Dec. 9, but that means companies could start making adjustments to prepare for the possibility. One sign that Kelly anticipates seeing is that hazardous materials will stop being shipped a few days prior if no deal is reached.
Many people don’t realize just how much of the country’s business still depends on railway transport, Kelly said.
“It’s one of those quiet infrastructure issues that the general public doesn’t have knowledge of, nor should they, necessarily,” he said. “It’s not their day-to-day business but if people stood back and saw how much freight is required to keep this economy running and that freight going on rail, they would probably be surprised. And so, the average consumer is going to feel it very quickly if a strike happens.”
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