Later this week the U.S. Congress will consider a bill aimed to prevent a nation-wide shutdown of the railways.
Key Details
- Lawmakers on both sides of the aisle in the U.S. Senate and House of Representatives are working together to prevent a potential shutdown.
- The threat of a rail strike is on the horizon again as several major unions have rejected a tentative agreement negotiated in September.
- Senate Majority Leader Chuck Schumer, House Speaker Nancy Pelosi, House Minority Leader Kevin McCarthy, and Senate Minority Leader Mitch McConnell have all been involved in drafting the legislation.
- All four leaders are in agreement that the rail strike needs to be prevented and quickly.
Why it’s news
A rail strike poses a critical threat to the American supply chain and could cost the American economy $2 billion per day. Rejection of the tentative deal is also a blow to the Biden Administration which brokered the deal in September.
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 also be affected.
On Monday, President Joe Biden asked Congress to use its legislative power to force the rail unions to accept the agreement.
“As a proud pro-labor president, I am reluctant to override the ratification procedures and the views of those who voted against the agreement,” the president says. The president went on to say that the potential harm to the public caused by a rail strike made the legislation necessary.
According to a previous agreement, rail workers cannot strike until December 9.
One of the main points of contention during negotiations had been a disagreement over sick-leave policies. The tentative agreement had recommended a 7% pay increase this year and retroactive increases for the last two years since negotiations have been ongoing since 2019.
While the deal does increase worker pay, it does not address the issues surrounding sick leave that workers have been strongly pushing. This appears to be the reason workers have rejected the deal.
Because sick leave is excluded, some legislators have expressed opposition to forcing the unions to accept the deal including Missouri Representative Cori Bush, New York Representative Jamaal Bowman, and Michigan Representative Rashida Tlaib.
Backing up a bit
This will not be the first time Congress has intervened in labor negotiations with the railroad. In 1992, Congress and then President George H. W. Bush stepped in to end a rail strike after just two days.
In that brief period of time, the strike caused economic turmoil by forcing layoffs at major manufacturing centers like coal mines and automotive assembly plants.
The legislation was passed swiftly, prohibited striking, and established an arbitrator system that would force the unions to accept an offer negotiated with rail executives.
Even back then, there was opposition to an anti-labor move, but worries about the long-term effects of the strike quieted most debate. In the Senate, six senators voted against the measure—including then Senator Joe Biden.
Within a few hours of the bill’s signing, many trains were back up and running with the rest set to follow shortly after.