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US businesses warn of ‘economic disaster’ over railroad strike threat

Freight service is curtailed as labour unions contemplate first work stoppage in 30 years

Shippers of goods from animal feed to electronics have urged the US Congress to intervene in a simmering labour dispute that could freeze freight service on the nation’s railroads as soon as this week.

More than 100,000 rail workers will be free to strike for the first time since 1992 if contracts are not agreed when a federally mandated cooling-off period expires on Thursday, unless Congress takes action. They include employees of the largest carriers in North America, such as Union Pacific, CSX and BNSF, a business owned by Warren Buffett’s Berkshire Hathaway.

Ten of 12 labour unions in talks with the railroads’ bargaining committee had struck deals as of late Tuesday. But two were holding out after almost three years of unsuccessful negotiations. The unions have threatened to strike even if one remains without an agreement.

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