Update: Tentative labor deal averts further Amtrak San Joaquins, ACE service suspensions

  • Oops!
    Something went wrong.
    Please try again later.

Update: SJ Rail Commission says Friday service will run as normal

Latest tatement from the San Joaquin Regional Rail Commission:

"The San Joaquin Regional Rail Commission (SJRRC) is extremely pleased to hear the news of a tentative agreement being reached between the freight railroad carriers and all of their respective employee unions. However, ACE will still be operating under its previously announced modified service plan for Thursday, September 15, 2022, as a result of the negotiation uncertainty. On Friday, September 16, 2022, ACE will operate its full service. SJRRC will continue to monitor the situation and keep the passengers and community informed.

“ 'Our agency is extremely pleased to hear the news that a tentative agreement has been reached between freight railroad carriers and all of their respective employee unions. As we promised to restore service as quickly as possible, we will be restoring ACE to full-service tomorrow which will be welcome news to our loyal passengers. We greatly appreciate the patience and flexibility of our passengers and partners. We stay committed to keeping you informed as the national collective bargaining process moves forward,' states Stacey Mortensen, SJRRC Executive Director."

Update, Thursday, 9 a.m.: Tentative deal reached

President Joe Biden announced Thursday that a tentative railway labor agreement has been reached, averting a nationwide strike that could have been devastating to the economy before the pivotal midterm elections. Altamont Corridor Express has not yet provided updated Amtrak San Joaquins and ACE train information, but we will update when they do.

Live updates: Biden calls tentative labor deal a 'big win for America' as railroad strike is averted

Related: Amtrak working to restore canceled trips after railroad strike averted with freight deal

Update: Stockton-San Jose trains suspended Thursday

Altamont Corridor Express will suspend the ACE 05 (6:40 a.m. Stockton departure) and 07 (7:32 a.m. Stockton departure) Thursday morning and ACE 08 (5:35 p.m. San Jose departure) and 10 (6:38 p.m. San Jose departure) and associated Thruway Bus service Thursday afternoon as a rail strike looms, the transit agency said late Wednesday.

Members of one union rejected a tentative deal with the largest U.S. freight railroads Wednesday, while two ratified agreements and three others remained at the bargaining table just days ahead of a strike deadline, threatening to intensify snarls in the nation's supply chain that have contributed to rising prices.

“With the freight railroads and all of their respective employee unions not yet coming to an agreement, the San Joaquin Regional Rail Commission (SJRRC) will implement a modified operating plan for ACE on Thursday,” ACE said in a statement Wednesday.

If an agreement is not reach by 5 p.m. Thursday, ACE will suspend all service beginning Friday, Sept. 16, 2022, until a resolution is reached, the agency said.

Original story

Altamont Corridor Express personnel are preparing for a potential freight railroad shutdown as soon as Friday that could suspend Amtrak San Joaquins, ACE operations, the San Joaquin Regional Rail Commission is warning.

If the freight railroads and their employee unions do not come to an agreement, a stoppage will be allowed to commence as soon as 12:01 a.m. Friday, Sept. 16. Freight and passenger operations on corridors managed by freight railroads would cease, including on the Union Pacific and BNSF lines on which the San Joaquins operates, ACE officials said.

Should a work stoppage commence, the San Joaquins would be required to begin suspending service on Thursday, Sept. 15 until a resolution is achieved. On Thursday, Sept. 15, ACE will suspend ACE 05, 07, 08, and 10 to ensure that no trains are left in the corridor by the Sept. 16 deadline. On Friday, Sept. 16, All ACE service will be suspended until further notice.

“We are working in close collaboration with both our host railroads and community partners to ensure timely information and resources can be made available. In the event of a work stoppage, we will do everything in our power to restore service as quickly as possible,” said Stacey Mortensen, SJRRC executive director.

What passengers may be entitled to: Amtrak and commuter railroads warn of service cuts ahead of impending freight rail strike

Pressure mounts

President Joe Biden faces a narrowing window to avert a strike from freight railroad workers that could further strain supply chains and deliver a damaging blow to Democrats before the midterm elections.

Top aides and Biden himself were in touch with railroad companies and union representatives late into Monday evening and Tuesday to try to avoid a shutdown.

Read more: Amtrak cancels all long-distance trains ahead of potential freight rail shutdown

The White House is exploring contingencies including invoking emergency authorities to ensure crucial materials are still delivered if there is a shutdown, according to a White House official, who discussed the talks on the condition of anonymity.

Workers and the rail carriers have until Friday to reach an agreement. That's when a federally mandated "cooling off" period ends, which would open the door for about 115,000 rail workers in unions to walk off the job.

Inside the rail dispute

  • Three years of talks: Negotiations for a new contract between the nation's six largest freight carriers – Union Pacific, CSX, Norfolk Southern, BNSF, Canadian National and Kansas City Southern – and 12 unions go back nearly three years. Biden appointed a Presidential Emergency Board in July to mediate the dispute.

  • Areas of agreement: A trade organization representing the companies has announced agreements with 10 of the unions that closely match recommendations of Biden's emergency board, including wage increases of 24%, bonuses totaling $5,000 and one additional paid-leave day a year.

  • Unresolved issues: The two largest unions representing conductors and engineers have not signed on to the proposal, citing a lack of measures to address working conditions and strict attendance policies. The groups' leaders say their members have been terminated for getting sick or missing work for medical visits.

  • "Economic disaster": A national strike from railroad workers could jeopardize the shipment of retail products, critical goods and raw materials while inflation is already high, a scenario the U.S. Chamber of Commerce said would be an "economic disaster."

President Joe Biden speaks about the Inflation Reduction Act of 2022 during a ceremony on the South Lawn of the White House in Washington, Tuesday, Sept. 13, 2022. (AP Photo/Andrew Harnik) ORG XMIT: DCAH476
President Joe Biden speaks about the Inflation Reduction Act of 2022 during a ceremony on the South Lawn of the White House in Washington, Tuesday, Sept. 13, 2022. (AP Photo/Andrew Harnik) ORG XMIT: DCAH476

What happens next as railroad strike looms

Labor Secretary Marty Walsh is meeting Wednesday with union leaders and carrier executives in Washington to work on a deal.

The White House called a shutdown "not acceptable" and is working on contingency plans in case an agreement is not reached. That includes conversations with the trucking and air freight industries about filling the void to keep goods moving.

The administration has also discussed whether invoking presidential emergency powers is an option to ensure food, energy and other essential products are delivered to customers during a shutdown, according to a White House official.

The Association of American Railroads is pushing Congress to intervene under the Railway Labor Act to block a shutdown by approving legislation that would implement the Presidential Emergency's Board's recommendations. The association estimated a nationwide rail strike could reduce economic output by more than $2 billion a day.

Con: Looming railroad strike could be 'economic disaster,' impacting consumers from all angles

Sens. Richard Burr, R-N.C., and Roger Wicker, R-Miss., introduced legislation Monday that would adopt the recommendations if an agreement is not reached.

To prepare for a possible shutdown, the railroad companies said they plan to curtail the shipment of hazardous materials and crucial goods so containers aren't stranded along tracks. Union leaders slammed the move as "corporate terrorism" and "scare tactics" designed to get Congress to cave.

Freight rail
Some of the $66 billion infrastructure funding for rail travel would also be used for freight and passenger rail safety.
A Norfolk Southern freight train moves along elevated tracks in Philadelphia, Wednesday, Oct. 27, 2021.
Freight rail Some of the $66 billion infrastructure funding for rail travel would also be used for freight and passenger rail safety. A Norfolk Southern freight train moves along elevated tracks in Philadelphia, Wednesday, Oct. 27, 2021.

Takeaways

Biden is stuck in a hard spot politically as an outspoken supporter of unions while desperately wanting to avoid the repercussions of a shutdown.

More than any other modern president, Biden regularly hails organized labor. He said last year that his goal is to be "the most pro-union president leading the most pro-union administration in American history."

More: Asset or liability? Biden's momentum hasn't led to new invitations on midterm campaign trail

But a strike and bottlenecked supply chains could undermine Democrats' credibility on the economy, giving Republicans new ammunition as they look to regain control of Congress in the November elections.

Such a setback could halt Biden's recent momentum. The president is experiencing a bounce in approval ratings after a series of legislative wins in Congress and declining gas prices. And Democrats have been energized by the Supreme Court's decision to overturn Roe v. Wade, reversing their once-gloomy prospects to maintain control of Congress.

What they are saying about the railroad labor standoff

  • White House press secretary Karine Jean-Pierre said Tuesday that the president continues to urge the railroads and unions to "stick at the negotiation table" to reach an agreement. "A shutdown is not acceptable," she said. "It risks harming families; it risks harming businesses and whole communities."

  • Ian Jefferies, president and CEO of the Association of American Railroads, said a work stoppage would result in an "unnecessary $2 billion daily economic hit" just as the freight sector moves into peak shipping season. The railroad companies he represents have accused the uncommitted unions of taking positions "expressly rejected" by the Presidential Emergency Board.

  • Jeremy Ferguson and Dennis Pierce, presidents of the unions representing conductors and engineers, stuck to their demands in a joint statement. "Rather than gridlock the supply chain by denying shipments and potentially locking our members out Friday, the railroads should work towards a fair settlement that our members, their employees, would ratify."

  • Burr, ranking member of the Senate Health, Education, Labor and Pensions Committee, said a railroad strike would be "catastrophic" for America's freight system and supply chains. "The Biden administration should reject labor unions’ bullying tactics."

  • “A national rail strike would be an economic disaster – freezing the flow of goods, emptying shelves, shuttering workplaces and raising prices for families and businesses alike," said Suzanne Clark, president and CEO of the U.S. Chamber of Commerce, which has asked Congress to intervene if the stalemate continues. "But that is exactly what is likely to happen in less than four days."

The big picture

The economy and soaring consumer prices remain Biden’s biggest vulnerability.

Even though gas prices declined for the second straight month in September, overall inflation hasn’t decreased as fast as many experts forecast.

Overall prices increased 8.3% from a year earlier, down from an 8.5% rise in July and a 40-year high of 9.1% in June. But many economists had predicted yearly inflation would fall to 8%.

Less than 60 days before the midterm elections, the last thing Democrats need is more economic uncertainty as a result of a freight rail shutdown.

More: Is Biden responsible for dip in inflation? President's victory lap is premature, experts say

The USA TODAY network and The Associated Press contributed to this report.

This article originally appeared on The Record: Amtrak cancels trains as freight strike looms, affecting SJ service