WASHINGTON—President Biden is desperate to avert a damaging freight train strike that could exacerbate rapid inflation, urging railroad companies and unions to reach a deal before Friday’s deadline, urging labor We are exploring whether we can do something unilaterally to alleviate their concerns.
Biden and his economic team are embarking on final negotiations between the railroad unions and major railroad companies. Labor groups claim that employees can take unpaid leave to see a doctor, but the railroad company refuses to allow this.
On Wednesday, in anticipation of the strike, Amtrak announced that, given that many of its trains run on tracks operated and maintained by freight carriers, all long-haul trains will be closed starting Thursday to avoid the possibility of people being stranded. announced the cancellation of long-distance passenger trains.
Also on Wednesday, members of a small rail union whose leaders reached a tentative agreement with a freight company voted against the deal, suggesting negotiations would be even more difficult. And Mr. Biden’s labor secretary has gathered union and business leaders in Washington to try to resolve the impasse, but little progress has been made.
The impending strike put Mr Biden in an awkward position at a crucial moment. He’s caught between his years of efforts to defuse the unrest and his efforts to keep the union’s ardent support.
As a result, Mr. Biden is trying to tread the cautious line, struggling to convey to both unions and businesses that they have an obligation to maintain rail service. During his tenure, he has pushed for a stronger organized workforce, but is wary of hurting American consumers and the economy.
On Monday, Mr. Biden called leaders on both sides of the table to urge a deal, emphasizing the same message for both sides: countries, and a negotiated agreement is the best way to get around it.
Labor Secretary Martin J. Walsh and White House officials met union and business leaders in Washington Wednesday to broker a deal before the federally-imposed “cooling-off period” for negotiations ends Friday. welcomed Workers do not automatically strike, but they can strike immediately.
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What is inflation? Inflation is the loss of purchasing power over time. So your dollar won’t go as well tomorrow as it did today. It is usually expressed as annual changes in the prices of commodities and services such as food, furniture, apparel, transportation and toys.
Negotiations stalled over union grievances about working conditions faced by workers in the second largest freighter in the United States. This includes long shifts scheduled on short notice and penalties for sick calls and doctor visits. Biden’s aides discussed whether the president could take some administrative action to guarantee better conditions for railroad workers.
White House officials would not elaborate on the actions discussed by the president’s economic team, nor what powers Biden has to resolve issues that fall largely under the jurisdiction of private corporations. It remains unknown.
Biden could push Democratic leaders in Congress to pass legislation that would extend the cooling-off period or force unions and employers to accept contractual recommendations. published last month by an emergency committee set up by Mr. Biden this summer.
But Mr. Biden is not Ronald Reagan, who famously ordered striking air traffic controllers to return to work in 1981 and fired those who did not comply. Instead, he likes to call himself “the most pro-union president in history.”
“This is an issue that can and should be resolved between railroads and unions,” White House Press Secretary Carine Jean-Pierre told reporters on Wednesday, adding, “It’s not about Congress.” rice field.
Government officials are developing contingency plans to minimize disruption to critical shipments in the event of a strike. This includes working with trucking companies, shipping carriers and other alternative modes of transport to ensure that some goods reach their destination.
But the administration’s options are limited, said John Drake, vice president for transportation, infrastructure and supply chain policy at the U.S. Chamber of Commerce.
“The tools at the administration’s disposal to mitigate this impact simply won’t be enough,” Drake said, affecting their lives and livelihoods. ”
Michael K. Friedberg, a transportation attorney at Holland & Knight, said union leaders recognize the political predicament the deadlock is creating for Biden and Congressional Democrats. said it does. But their members “have no interest in Biden politics. They want sick leave and they want it now,” he said.
“It really puts Biden and the Democratic caucus in a bind,” he added.
Nearly one-third of U.S. freight traffic travels by rail, second only to trucking. The American Railroad Association, which represents the major freight railroads and Amtrak in the United States, Mexico and Canada, Estimate A nationwide disruption of rail service could stop more than 7,000 trains each day, resulting in economic losses of over $2 billion per day.
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The railroad company last week began warning customers to prepare for the strike by cutting some services. Union Pacific, CSX and BNSF all said they will begin securing hazardous and toxic materials Monday to ensure they are not left unprotected in the event of a strike. Norfolk Southern closed the gates for containers shipped from trucks and ships on Tuesday, Said The company had planned to completely shut down the network at midnight Thursday.
Union Pacific spokeswoman Kristen South said in an emailed statement that while these actions were necessary, they did not mean that work was certain to stop.
“What we want, and continue to push for, is a quick solution that will provide our employees with historic wage increases, enable railroads to restore service as quickly as possible, and address the struggling supply chain. to prevent further turmoil,” she said.
But the two major unions that did not agree to the deal called these preparations “no more than corporate blackmail” and said the railroad was further hurting supply chains to provoke Congressional action. .
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“Our union remained at the negotiating table and gave the rail haulers a proposal they were willing to submit to their members for ratification, but it was the rail haulers who refused to reach an acceptable agreement. ‘ said the SMART Transportation division and the Brotherhood of Engineers and Railroaders. Joint statement.
On Wednesday, the International Association of Machinists and Aerospace Workers, representing 4,900 locomotive machinists, track equipment machinists and other maintenance personnel, said: Said He also rejected agreements with carriers and voted to approve a strike, but said he would delay action until Sept. 29 to allow more time for negotiations.
The complex dispute involves more than 30 railroad companies and about 115,000 employees, as well as 12 unions, each with their own process for ratifying agreements with railroad companies. .
The disruption could affect much of America’s industry, which relies on rail transport for the timely transportation of goods across continents. For example, the retail industry is now in a rush to move toys, clothing and electronics from cargo ships to warehouses and distribution centers ahead of the holiday shopping season. Many American farmers are about to start harvesting their crops. They often put them on trains to send them to processors.
In addition to shipping containers full of shoes, shampoo, and furniture, American railroads are responsible for transporting much of the chemicals, automobiles, metals, grains, and oil that move across the continent.
Vorto chief executive Priyesh Ranjan said any outage would push up spot prices in the trucking industry, with farmers and retailers rushing to secure trucks to move their goods. Costs for dependent industries are likely to rise, he said. , a supply chain platform.
Judah, head of research at international freight platform Freightos, said rail strikes could exacerbate congestion in east and west coast ports as companies try to ship goods closer to consumers. says Levine.
Another complication looms. Dockworkers and terminal operators at West Coast ports are sticking to their own extension talks over contracts that expired in May. The two sides have pledged to continue moving goods during negotiations, but the possibility remains of a halt or slowdown in work that undermines trade.
As the railroad industry is central to the economy, parliament and administration have special powers to intervene in labor disputes. Under the Railroad Labor Act, the President can appoint emergency commissions to make recommendations for resolving labor disputes.
President Biden convened its board in mid-July and issued a report on August 16, initiating a 30-day ban on strikes, slowdowns and lockouts.
Rail companies say they are happy to accept the commission’s recommendations, including a 22% increase in nominal wages over five years and keeping health insurance benefits largely unchanged.
Most of the unions also agreed with this proposal. However, several unions, including two major unions representing about half of the workers being negotiated, are calling for improved sick leave and attendance policies they described as “harsh”.
Niraj Choksi When Gnome Shiver contributed to the report.