Biden calls on Congress to avert rail strike

Editor's note: This story has been updated with a comment from the Brotherhood of Maintenance of Way Employes Division-IBT.

President Joe Biden yesterday called on Congress to immediately pass legislation that would adopt the tentative labor agreement between the nation's major freight railroads and rail unions.

Labor and management negotiators in September approved the agreement, which would provide a "historic" 24% pay raise for rail workers. It also provides operating craft workers the ability to take unscheduled leave for medical purposes, Biden said in a prepared statement.

During the ratification votes, the secretaries of labor, agriculture and transportation have been in regular contact with labor leaders and management, according to Biden.

"They believe that there is no path to resolve the dispute at the bargaining table and have recommended that we seek congressional action," he said.

A rail strike would "devastate" the nation's economy, the president added.

"Without freight rail, many U.S. industries would shut down," said Biden. "My economic advisers report that as many as 765,000 Americans — many union workers themselves — could be put out of work in the first two weeks alone. Communities could lose access to chemicals necessary to ensure clean drinking water. Farms and ranches across the country could be unable to feed their livestock."

As a "pro-labor president," Biden said he's reluctant to override the ratifications that have occurred so far.

"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," the president said.

The Brotherhood of Maintenance of Way Employes Division-IBT, one of the unions whose members voted against ratification, issued a statement in response to Biden's call for congressional action. The union highlighted workers' concerns about the tentative agreement's lack of paid sick leave.

"A call to Congress to act immediately to pass legislation that adopts tentative agreements that excludes railroad workers' concerns," BMWED officials said. "It both denies railroad workers their right to strike while also denying them of the benefit they would likely otherwise obtain if they were not denied their right to strike."

Passing legislation to adopt an agreement that excludes paid sick leave will not address rail-service issues, they added. Rather, it will worsen supply-chain issues and further "sicken, infuriate and disenfranchise" rail workers. The union called on Biden and Congress to pass legislation that would enforce an agreement that offers paid sick leave for rail workers.

But Association of American Railroads officials agreed with Biden that it's time for Congress to pass legislation to implement the agreement.

"A clear pattern of ratified agreements has been established and congressional action to prevent a work stoppage in this manner is appropriate," said AAR President and CEO Ian Jefferies in a press release. "These agreements will ultimately boost average employee compensation and benefits to more than $160,000."

Employees represented by unions that have ratified are already benefiting from a 14.1% wage increase and immediate payouts that will average $16,000 across all unionized railroaders, AAR officials said.

A rail strike would cost the U.S. economy about $2 billion a day, according to AAR.