President Joe Biden on Monday called on Congress to pass legislation to intervene and block a railroad strike before next month’s deadline in the stalled contract talks.
Biden said a tentative agreement approved in September provided a pay raise for workers, health care benefits and a better leave policy.
But talks have since stalled. Four rail unions are back at the table after rejecting their deals with the railroads, trying to work out new agreements before the Dec. 9 deadline. Eight other rail unions have ratified deals which include 24% raises and $5,000 in bonuses.
Labor leaders have asked Congress to step in. Lawmakers have the power to impose contract terms on the workers, but it’s not clear what they might include if they do that. They could also force the negotiations to continue into the new year.
“Let me be clear: a rail shutdown would devastate our economy,” Biden said in a statement. “Without freight rail, many U.S. industries would shut down.”
“As a proud pro-labor President, I am reluctant to override the ratification procedures and the views of those who voted against the agreement,” Biden’s statement continued. “But in this case – where the economic impact of a shutdown would hurt millions of other working people and families – I believe Congress must use its powers to adopt this deal.”
Soon after, House Speaker Nancy Pelosi, D-Calif., released her own statement saying the House will “take up a bill adopting the Tentative Agreement – with no poison pills or changes to the negotiated terms – and send it to the Senate” at some point this week.
“It is my hope that this necessary, strike-averting legislation will earn a strongly bipartisan vote, giving America’s families confidence in our commitment to protecting their financial futures,” Pelosi continued, adding that Democrats “are continuing to fight for more of railroad workers’ priorities, including paid sick leave.”
Earlier Monday, a coalition of more than 400 business groups sent a letter to Congressional leaders urging them to step into the stalled talks because of fears about the devastating potential impact of a strike that could force many businesses to shut down if they can’t get the rail deliveries they need. Commuter railroads and Amtrak would also be affected in a strike because many of them use tracks owned by the freight railroads.
The business groups led by the U.S. Chamber of Commerce, National Association of Manufacturers and National Retail Federation said even a short-term strike would have a tremendous impact and the economic pain would start to be felt even before the Dec. 9 strike deadline because the railroads would stop hauling hazardous chemicals, fertilizers and perishable goods up to a week beforehand to keep those products from being stranded somewhere along the tracks.
“A potential rail strike only adds to the headwinds facing the U.S. economy,” the businesses wrote. “A rail stoppage would immediately lead to supply shortages and higher prices. The cessation of Amtrak and commuter rail services would disrupt up to 7 million travelers a day. Many businesses would see their sales disrupted right in the middle of the critical holiday shopping season.”
A similar group of businesses sent another letter to President Joe Biden last month urging him to play a more active role in resolving the contract dispute.
