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The threat of a rail strike in the middle of the December sales season would be “devastating” for companies and the economy from the United States, considered retail groups in the country.
When it seemed that the sector business gave good news about the possibility that avoiding a recession could be feasible , after several earnings reports with sales at a profit, the threat of a strike arises and seems to gain strength.
What seemed like a definitive intervention by the federal government with the installation of The Presidential Emergency Board of President Joe Biden, fell apart this week, when it was learned that one of the most important unions in the sector rejected a possible agreement .
Transportation Division of the International Association of Sheet Metal Workers, Ai re, Ferrocarril y Transporte (SMART-TD) reported this Monday that it did not have a favorable solution to adhere to the proposed solution.
Until starting this week, at least a third of the 12 railway unions of the country had rejected a possible solution, mainly with the rejection of the section of train and engine workers.
Following the news, the threat of a strike increasing and is expected as soon as December, right in the middle of the US Christmas shopping season
Retailers alert for strong impact of a strike
The impact of a strike of the railways would be “devastating” for companies in the country and for the economy in general, warned some retail associations.
“It would cause a huge disruption in the flow of goods across the country, the effects of which would ripple through the supply chain and throughout the US economy,” said Jess Dankert, Vice President of Supply Chains of the Association of Retail Industry Leaders, in a statement to Fox Business.
Dankert added that, fortunately, many of Christmas shipments are completed on the shelves of retail stores in the country, however, the impacts would be seen starting next year .
For his part, the executive director of the National Retail Federation, Matthew Shay, also warned about the effects of a possible strike on the US railroads.
“(It would be) devastating to American businesses, consumers and the country’s economy as a whole,” he said in a statement.
Dankert added that he s negative effects would reach consumer budgets , as a new disturbance in the domestic supply chain , would stick directly to the prices of the products.
“It represents a significant challenge for items such as perishable food products and e-commerce shipments to be delivered on time and, without a doubt, will add to the inflationary pressures that are already affecting the US economy”, he considered.
Shay agreed on the fears that a strike would fuel the already historic inflation that is challenging family and company budgets.
“Smooth and stable operations on the rails are absolutely crucial this holiday season and not they must be derailed by a rejection of the contract”, he estimated.
The deadline for railway companies and unions to find a solution expires next December 8.
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