The U.S. House of Representative has approved a bill which will end the ongoing labor dispute between rail unions and executives.
Key Details
- After several major labor unions rejected the tentative deal negotiated with White House assistance, President Joe Biden asked Congress to intervene and end the labor dispute.
- The main issue halting negotiations has been disagreement over sick leave.
- In addition to approving the tentative deal, which would adjust worker pay, the House included a proposal to include one week of paid sick leave.
- Members of the House voted 290 to 137 on a bill that will force the unions to adopt the agreement. The paid leave proposal also passed 221-207.
Why it’s news
The dispute between rail unions and executives has been ongoing for two years. The main hangup has centered around sick leave for workers. Despite a deal which would raise wages, unions rejected the tentative deal proposed in September largely because of the omission of sick days.
Now that the bill has passed in the House, the Senate has to take a vote. Currently, the Senate is fairly divided on whether or not to pass the bill and proposal. Sixty votes are required to pass the legislation.
Both Democrat and Republican leaders have supported the bill. No time has been scheduled to take the vote, though President Biden has urged lawmakers to act swiftly in order to prevent a potential strike.
A rail strike poses a critical threat to the American supply chain and could cost the American economy $2 billion per day. Freight trains function as the second-largest method of transportation in the U.S. The trains serve an important role transporting raw goods such as coal, lumber, ore, and chemicals. Over a quarter of total freight in the U.S. is shipped through the railway.
A rail strike would lead to significant supply chain disruptions and leave manufacturers unable to access necessary commodities. Necessities like oil and food products would be affected.
After the previous deal was negotiated, a cooling off period was instituted, meaning the rail workers could not strike before a certain date. Now that date—December 9—is closing in.