Last Friday, President Joe Biden signed legislation that imposes a labor agreement on railroad workers. The law that was signed prevented a national strike in the US that could have cost the American economy 2 billion dollars a day. “Shutting down a train would destroy our economy,” the president said at the signing of the law. “Without freight trains, many industries in the US would be forced to close their doors.”
Four unions — including the industry’s largest — voted against their contracts because of a lack of paid sick days, arguing they can’t get time off in case of a cold or flu. The impasse threatened to shut down the country’s rail system, which is responsible for 40% of US intercity freight.
Congress moved with rare speed this week to avoid a shutdown by approving a bill that would force four unions representing thousands of workers to accept the rejected labor agreements. A Democratic-led effort to authorize paid sick leave for workers failed to pass the Senate.
Legislators have unique authority according to the Railway Labor Law (Railway Labor Act) intervene in negotiations – Congress has passed laws to delay or settle a railroad strike at least 18 times since 1963.
Although the deadline for reaching an agreement between railroad companies and workers was Dec. 9, President Biden wanted legislation on his desk sooner, noting that businesses have warned they expect disruptions. Biden said Friday that the bill prevents “what would have been, without a doubt, an economic catastrophe at a very bad time on the calendar.”
Shippers welcomed the legislation, saying it averts a devastating blow to the country’s supply chains, which have been struggling for more than two years to recover from congestion, shortages and other delays. More than 300 trade unions urged the Biden administration to take action to avoid a shutdown, saying any rail disruption would have a “significant impact on the US economy and lead to additional inflationary pressure.”
However, union leaders attacked the Senate because the vote on receiving paid sick leave days failed and the threshold of 60 votes in favor of the clause was not passed.