President Biden on Monday demanded Congress take action to avert a looming rail strike that could trigger major disruptions in the nation’s supply chain in the height of holiday shopping season.
With lawmakers returning to Capitol Hill for a brief three weeks between Thanksgiving and Christmas, Biden demanded they approve the tentative agreement between rail workers and operators, negotiated in September.
As Biden noted, a rail strike would ‘devastate our economy,’ and could put up to 765,000 out of work. The president noted that it could even affect the drinking water supply and livestock and agriculture. Businesses the nation over could be forced to shut their doors without access to the supplies they need.
Commuter railroads and Amtrak would also be affected as they often use tracks owned by freight railroads.
The September tentative deal offered a 24 percent pay raise for rail workers, health care benefits and medical leave. Eight rail unions have ratified their deals, but four rail unions are back at the negotiating table after rejecting their deals with the railroads.
President Biden on Monday demanded Congress take action to avert a looming rail strike that could trigger major disruptions in the nation’s supply chain in the height of holiday shopping season
Biden and labor leaders have asked Congress to step in before the Dec. 9 deadline – lawmakers have the power to impose contract terms on workers
Now, Biden and labor leaders have asked Congress to step in before the Dec. 9 deadline – lawmakers have the power to impose contract terms on workers.
‘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 said. ‘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 call for action echoed that of a coalition of 400 business groups who sent a letter to congressional leaders.
Led by the led by the U.S. Chamber of Commerce, National Association of Manufacturers and National Retail Federation, the groups said even a short-term strike would lead to sharp economic pain as 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.’