A potential strike of railroad workers threatens to derail the national economy to the tune of $2 billion a day if ongoing negotiations between workers and rail companies fail to find a compromise.
Although agreements have been made with many of the labor unions involved, two holdouts have threatened to strike on Friday if their demands are not met.
The two holdout unions, the transportation division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART-TD) and the Brotherhood of Locomotive Engineers and Trainmen (BLET), collectively represent roughly 182,000 employees.
The unions’ demands include attendance policy changes, improved pay, and other quality-of-life items.
A union spokesperson explained to CNBC, “The workers are angry. They want movement on attendance policies and not be afraid to take a sick day or vacation day without the fear of termination. There will be no ratification unless this is addressed.”
The Association of American Railroads estimated that a nationwide rail shutdown could cost the United States $2 billion per day. The trucking industry signaled that it would be virtually impossible for it to fill the void, according to a letter sent to Congress by the American Trucking Association.
Several rail companies have already begun winding down operations in anticipation of a strike.
Norfolk Southern suspended the transportation of “hazardous and other security-sensitive freight” so that it would not be “left stranded in the event of a sudden strike.”
Additionally, Amtrak notified the public that they had “begun to make initial service adjustments in response to a possible freight railroad service interruption.”
The potential economic devastation that could follow a strike has put President Joe Biden in a tight spot as he has taken an active role in the negotiations by creating a Presidential Emergency Board and issuing extensive recommendations.
If an agreement cannot be reached and the strike occurs, it could lead to renewed supply-chain disruptions. However, if Biden takes action against the unions, he would undermine one of his presidential promises.
In 2021 he told labor unions, “In my White House, you’ll always be welcome … You know, you’ve heard me say many times: I intend to be the most pro-union President leading the most pro-union administration in American history.”
The Railway Labor Act regulates an extensive mediation system designed to prevent the interruption of interstate commerce.
If the unions and rail companies cannot reach an agreement by going through this federal mediation system, the workers are legally allowed to strike. However, the Railway Labor Act allows Congress to intervene to break the strike if it becomes necessary.
House Majority Leader Steny Hoyer indicated that Congress likely would act.
“There is a role for Congress if, in fact they fail to reach an agreement,” he explained. “Obviously a railroad strike at this point in time would be extraordinarily detrimental to our economy and the American people. And we want to avoid that.”
The unions, however, are urging Congress not to bail out the “self-appointed titans of industry.”
A joint statement from SMART-TD and BLET explained, “Congress should stay out of the rail dispute and tell railroads to do what other business leaders do — sit down and bargain a contract that your employees will accept.”
If an agreement is not reached by Friday, September 16, the federally mandated “cooling off” period ends, and the unions can begin a strike.
Gracious Heavenly Father,
your Holy word says, I know your needs even before you ask me. I don’t know the needs or why this Rail Road Strike is happening, but thank you that they will receive what they are asking in faith for. We don’t always know the needs of another until we walk in their shoes, but you Precious Lord, you know. And I thank you Father that you bless them, and move upon the heart of the “Unions” to negotiate what the people are asking for in Righteousness, and Truth that will fulfill the heart of this people who labor day and night to bring to towns, cities, and the world food, clothes, for what the people are needing. I just want to say thank you because I know Lord you are watching, listening, and waiting for your people to pray. Thank you Lord Jesus Christ for answered prayer in this matter.
Amen.
Not to worry Dark Brandon will take care of business !
This mess wouldn’t have happened if our rightful winner was in office. President Trump would have taken a strong righteous approach and knows how to make a deal both parties would likely accept. FJB!
Nice photo illustrating this article . . . except that it shows a train that would never be seen in the US. Since all lettering has been photoshopped off of the image, it’s a little hard to tell where it might have been taken but I’m going to guess it was India, South Africa or Australia.