November 23, 2022

Despite the intimate involvement of President Biden and Labor Secretary Marty Walsh to develop a comprehensive new contract structure for some 120,000 U.S. freight rail workers, there is growing fear some workers will fail to accept the terms. Voting “no” on the agreements means these workers could strike, which would lead to a shutdown of the nation’s quiet but mighty rail network that moves some 40 percent of goods in the country as measured by weight. Analysis says the economic hit to our economy would be at least $2 billion per day.

Congress has clear authority to intervene in such an instance and should do so. Consumers, domestic industries, and our economy cannot weather a rail strike during the holiday season. Congressional action, if needed, would still deliver favorable gains for workers.

By way of background, there are 12 freight railroad unions involved in collective bargaining. Seven of the twelve have already agreed to terms, while 3 unions have rejected the proposed contracts. Two are still voting.

Labor unions petitioned Democratic lawmakers for mediation that was then granted, to be overseen by the National Mediation Board. They then asked to be released from mediation, which the supposedly independent agency also granted. Industry observers note this approval was granted in record time.

This triggered President Biden to create a panel of hand-picked arbitrators to what is called a “Presidential Emergency Board.” These individuals studied the issue extensively, producing a report that recommended nearly 25 percent pay raises, more than $10,000 in back pay, preservation of platinum health care plans and annual bonuses of $1,000.

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