Biden Urges Congress To Pass Bill To Avert Railroad Strike

Topline

President Joe Biden pressed Congress Monday to implement a labor deal between the largest U.S. rail operators and a group of large unions, as a months-long impasse between the two sides threatens to end in a strike or lockout that would shut down rail lines and cause sweeping nationwide transportation issues.

Key Facts

In a Monday evening statement, Biden pushed lawmakers to use their legal authority to pass a bill adopting a federally brokered labor deal, which was negotiated over two months ago, by December 9, when a cooling-off period is set to end and a national rail strike could begin.

Members of eight rail industry unions have already voted to ratify the agreement, but another four—including the SMART conductors’ union—rejected it, and if the four holdouts go on strike, members of all 12 unions could refuse to go to work in solidarity.

Biden said he is “reluctant to override the ratification procedures,” but “the economic impact of a shutdown would hurt millions of other working people and families.”

House Speaker Nancy Pelosi (D-Calif.) said in a statement the lower chamber will take up legislation to adopt the labor agreement without any changes this week, though it’s unclear when the Senate will act on Biden’s request (Forbes has reached out to Senate Majority Leader Chuck Schumer’s office for comment).

The Association of American Railroads backs Biden’s push for congressional action: “No one benefits from a rail work stoppage – not our customers, not rail employees and not the American economy,” the industry group’s CEO Ian Jefferies said.

Key Background

Freight companies and rail unions hammered out a temporary labor deal in September, after the Biden Administration formed an emergency panel to push the often-strained negotiations forward. The deal promised 24% pay raises by 2024, and gave workers an additional paid day off. But one of the primary sticking points is sick leave and attendance policies: Many rail workers are expected to be on call for long periods and can be penalized for calling out of work due to family or medical issues.

Big Number

765,000. That’s how many Americans could be put out of work in the first two weeks of a rail strike, the White House estimated. The Association of American Railroads says a shutdown would cause thousands of long-distance freight trains to grind to a halt every day, and there isn’t enough truck capacity nationwide to step in and carry all of the food, chemicals and shipping containers that normally travel on those trains.

Surprising Fact

Congress has intervened in rail labor negotiations 18 times in the past, according to the U.S. Chamber of Commerce, which supports congressional intervention.