Topline
Biden administration officials are continuing to push for a resolution between major freight companies and unions representing thousands of rail workers after some unsuccessful negotiations over the weekend, multiple outlets reported, in an effort to try to avoid the first national rail strike in decades that could shut down the nation’s rail system and cost $2 billion a day.
Union Pacific cargo train prepares to cross a level railroad.
Key Facts
The White House is holding emergency meetings and preparing for a strike that is set to take effect Friday, the Washington Post reported on Monday, citing sources familiar with the matter, after negotiators met over the weekend but failed to reach agreements with some unions over benefits such as sick time and strict attendance policies.
The news comes after Labor Secretary Marty Walsh met with both sides last week to try to help broker a deal.
Most unions were able to reach tentative agreements with dozens of major freight companies based on recommendations from a special panel appointed by President Joe Biden, though workers have yet to vote to approve the agreements, and the two biggest unions representing 57,000 engineers and conductors have yet to reach a deal, according to the Post.
Major railroad companies, including BNSF, owned by Berkshire Hathaway, and CSK have also announced plans to delay certain shipments ahead of the strike, a move some unions lambasted, claiming the announcement was intended to encourage Congress to intervene to block workers from striking, as lawmakers have the ability to do through several mechanisms, including voting to enact the special panel’s recommendations.
The strike could cost $2 billion a day in lost economic output because of disruptions to deliveries and passenger travel.
Surprising Fact
A strike could shut down 30% of the country’s freight services and block most passenger and commuter rail services, according to the Association of American Railroads. Some 7,000 freight trains run by major rail companies including CSX, Union Pacific, BNSF, Norfolk Southern, and Kansas City Southern could be shut down, while passengers could face disruptions as well because commuter rail systems depend on tracks owned by freight railroads.
Crucial Quote
The Brotherhood of Locomotive Engineers and Trainmen, one of the unions that has not reached a deal, urged rail companies to make improvements to workers’ conditions to reach a “fair” agreement on Sunday. Punishing engineers and conductors “for getting sick or going to a doctor’s visit” must be stopped, the group said, adding no “working-class American should be treated with this level of harassment in the workplace for simply becoming ill or going to a routine medical visit.”
Key Background
Railroads and workers have been conducting negotiations since January 2020 with little progress. The Biden administration’s Presidential Emergency Board last month recommended a 24% wage increase and $5,000 in annual bonuses for rail workers, but those recommendations did not include strong enough proposals for improved working conditions, according to the Brotherhood of Locomotive Engineers and Trainmen, which claimed some railroads’ current policies are “destroying the lives of our members.” The group has accused companies of firing engineers and conductors for attending doctor’s appointments and funerals. Some rail companies also have strict attendance policies that force employees to work 12-hour shifts with few sick days. Rail workers’ unions have urged Congress to stay out of the dispute and to encourage freight companies to accept their conditions. The dispute has posed a conundrum for Biden, who has pledged to be the “most pro-union president” ever, but wants to avoid more economic fallout before the 2022 midterm elections.
Further Reading
Railroads, Unions Work to Avoid Strike and Supply Woes (Bloomberg)
As U.S. rail strike looms, White House aides scramble to avert crisis (Washington Post)
Source: https://www.forbes.com/sites/madelinehalpert/2022/09/12/railroad-dispute-white-house-tries-to-avert-2-billion-a-day-transportation-strike/