White House Calls For Congressional Intervention To Avoid ‘Potentially Crippling’ Rail Strike

President Joe Biden called upon members of Congress to prevent a looming rail strike that would “devastate” the economy ahead of the holiday season.

A strike could take place on December 9 as rail companies and labor unions fail to reach an agreement on matters such as health benefits and wage increases. Biden noted in a statement that the majority of the nation’s rail unions have approved a tentative agreement that guarantees a 24% pay raise and asked Congress to adopt the contract.

“I am calling on Congress to pass legislation immediately to adopt the Tentative Agreement between railroad workers and operators – without any modifications or delay – to avert a potentially crippling national rail shutdown,” the president remarked.

“This agreement was approved by labor and management negotiators in September,” Biden continued. “As a proud pro-labor President, I am reluctant to override the ratification procedures and the views of those who voted against the agreement. 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 Railway Labor Act, passed in 1926 as the nation became increasingly reliant upon railways, permits Congress to exercise its authority over interstate commerce by preventing rail strikes.

Biden noted that Labor Secretary Marty Walsh, Transportation Secretary Pete Buttigieg, and Agriculture Secretary Tom Vilsack, who have been in consistent contact with labor unions and rail companies, currently see “no path to resolve the dispute at the bargaining table” and recommended that Congress intervene. The daily economic cost of a nationwide rail shutdown could amount to $2 billion, according to a report from the Association of American Railroads.

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