Rail shutdown would devastate economic system: Biden calls on Congress to intervene as strike deadline nears

Hundreds of enterprise teams had been urging Congress and the president to step into the deadlocked contract discuss and forestall a strike.

A rail site visitors stoppage may freeze nearly 30% of U.S. cargo shipments by weight, stoke inflation and value the American economic system as a lot as $2 billion per day (Photo: AP)

By Associated Press: President Joe Biden on Monday requested Congress to intervene and block a railroad strike earlier than subsequent month’s deadline within the stalled contract talks, and House Speaker Nancy Pelosi mentioned lawmakers would take up laws this week to impose the deal that unions agreed to in September.

“Let me be clear: a rail shutdown would devastate our economy,” Biden mentioned in an announcement. “Without freight rail, many U.S. industries would shut down.”

In an announcement, Pelosi mentioned: “We are reluctant to bypass the standard ratification process for the Tentative Agreement — but we must act to prevent a catastrophic nationwide rail strike, which would grind our economy to a halt.”

Pelosi mentioned the House wouldn’t change the phrases of the September settlement, which might problem the Senate to approve the House invoice with out modifications.

The September settlement that Biden and Pelosi are calling for is a slight enchancment over what the board of arbitrators really helpful in the summertime. The September settlement added three unpaid days off a yr for engineers and conductors to are inclined to medical appointments so long as they scheduled them a minimum of 30 days prematurely. The railroads additionally promised in September to not penalize employees who’re hospitalized and to barter additional with the unions after the contract is accepted about enhancing the common scheduling of days off.

Hundreds of enterprise teams had been urging Congress and the president to step into the deadlocked contract discuss and forestall a strike.

ALSO READ | US President Joe Biden says his relationship with India is ‘excellent’

Both the unions and railroads have been lobbying Congress whereas contract talks proceed. If Congress acts, it would finish talks between the railroads and 4 rail unions that rejected their offers Biden helped dealer earlier than the unique strike deadline in September. Eight different unions have accepted their five-year offers with the railroads and are within the strategy of getting again pay for his or her employees for the 24% raises which might be retroactive to 2020.

If Congress does what Biden suggests and imposes phrases much like what was agreed on in September, that can finish the union’s push so as to add paid sick time. The 4 unions which have rejected their offers have been urgent for the railroads so as to add that profit to assist handle employees’ high quality of life considerations, however the railroads had refused to think about that.

Biden mentioned that as a “a proud pro-labor president” he was reluctant to override the views of people that voted in opposition to the settlement. “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.”

Biden’s remarks and Pelosi’s assertion got here after a coalition of greater than 400 enterprise teams despatched a letter to congressional leaders Monday urging them to step into the stalled talks due to fears concerning the devastating potential impression of a strike that might pressure many companies to close down if they will’t get the rail deliveries they want. Commuter railroads and Amtrak would even be affected in a strike as a result of lots of them use tracks owned by the freight railroads.

The enterprise teams led by the U.S. Chamber of Commerce, National Association of Manufacturers and National Retail Federation mentioned even a short-term strike would have an incredible impression and the financial ache would begin to be felt even earlier than the Dec. 9 strike deadline. They mentioned the railroads would cease hauling hazardous chemical substances, fertilizers and perishable items as much as every week beforehand to maintain these merchandise from being stranded someplace alongside the tracks.

ALSO READ | US President Joe Biden calls India an ‘indispensable accomplice’ on Independence Day

“A potential rail strike only adds to the headwinds facing the U.S. economy,” the companies 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.”

An analogous group of companies despatched one other letter to Biden final month urging him to play a extra energetic function in resolving the contract dispute.

On Monday, the Association of American Railroads commerce group praised Biden’s motion.

“No one benefits from a rail work stoppage — not our customers, not rail employees and not the American economy,” mentioned AAR President and CEO Ian Jefferies. “Now is the appropriate time for Congress to pass legislation to implement the agreements already ratified by eight of the twelve unions.”

Business teams which were pushing for Congress to settle this contract dispute praised Biden’s transfer.

“The Biden administration’s endorsement of congressional intervention affirms what America’s food, beverage, household and personal care manufacturers have been saying: Freight rail operations cannot shut down and imperil the availability and affordability of consumers’ everyday essentials,” mentioned Tom Madrecki, vice chairman of provide chain for the Consumer Brands Association. “The consequences to consumers if a strike were to occur are too serious, especially amid continued supply chain challenges and disruptions.”

Clark Ballew, a spokesman for the Brotherhood of Maintenance of Way Employes Division, which represents observe upkeep employees, mentioned earlier than Biden’s announcement that the union was “headed to D.C. this week to meet with lawmakers on the Hill from both parties. We have instructed our members to contact their federal lawmakers in the House and Senate for several weeks now.”

ALSO READ | Joe Biden walks as much as PM Modi to share heat hug at G20 summit | Watch

The U.S. Chamber of Commerce’s Neil Bradley mentioned Biden was appropriate in advocating for the deal already reached. “Congress must do what it has done 18 times before: intervene against a national rail strike,” Bradley mentioned in an announcement, and he known as Congress implementing the deal agreed to by railroads and union leaders the “only path to avoid crippling strike.”

The railroads, which embrace Union Pacific, BNSF, Norfolk Southern, CSX and Kansas City Southern, wished any deal to intently observe the suggestions a particular board of arbitrators that Biden appointed made this summer season that known as for the 24% raises and $5,000 in bonuses however didn’t resolve employees’ considerations about demanding schedules that make it exhausting to take a break day and different working situations. That’s what Biden is asking on Congress to impose.

ALSO READ | US President Joe Biden seems misplaced on stage after speech | Video

Published On:

Nov 29, 2022