The Looming Threat of a Rail Strike is Back. Here’s How a Potential Strike Could Affect You

As a busy holiday season gets underway, the looming threat of a potentially “devastating” rail strike is back.

President Joe Biden on Monday asked Congress to intervene and block a railroad strike before next month’s deadline in the stalled contract talks, and House Speaker Nancy Pelosi said lawmakers would take up legislation this week to impose the deal that unions agreed to in September.

“Let me be clear: a rail shutdown would devastate our economy,” Biden said in a statement. “Without freight rail, many U.S. industries would shut down.”

Biden also said noted that that a rail freight shutdown amid the holiday season would be “devastating.” “Congress should get this bill to my desk as soon as possible so we can avoid disruption,” the statement continued.

Pelosi, in a statement, said: “We are reluctant to bypass the standard ratification process for the Tentative Agreement — but we must act to prevent a catastrophic nationwide rail strike, which would grind our economy to a halt.”

Pelosi said the House would not change the terms of the September agreement, which would challenge the Senate to approve the House bill without changes.

What Unions Are Saying

On Monday, the Association of American Railroads trade group praised Biden’s action.

“No one benefits from a rail work stoppage — not our customers, not rail employees and not the American economy,” said AAR President and CEO Ian Jefferies. “Now is the appropriate time for Congress to pass legislation to implement the agreements already ratified by eight of the twelve unions.”

Business groups that have been pushing for Congress to settle this contract dispute praised Biden’s move.

“The Biden administration’s endorsement of congressional intervention affirms what America’s food, beverage, household and personal care manufacturers have been saying: Freight rail operations cannot shut down and imperil the availability and affordability of consumers’ everyday essentials,” said Tom Madrecki, vice president of supply chain for the Consumer Brands Association. “The consequences to consumers if a strike were to occur are too serious, especially amid continued supply chain challenges and disruptions.”

Clark Ballew, a spokesman for the Brotherhood of Maintenance of Way Employes Division, which represents track maintenance workers, said before Biden’s announcement that the union was “headed to D.C. this week to meet with lawmakers on the Hill from both parties. We have instructed our members to contact their federal lawmakers in the House and Senate for several weeks now.”

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