Pres. Biden is asking Congress to intervene and avert a potential strike of the nation's railway workers by forcing the workers' unions to accept a deal negotiated earlier this year.
In a statement, Biden described himself as a "proud pro-labor" president and said his decision was a difficult one."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," he said.
The tentative contract included a 24% compounded wage increase and $5,000 total in lump-sum payments. Biden said Monday he was calling for Congress to act on advice of his secretaries of labor, agriculture transportation, who "believe that there is no path to resolve the dispute at the bargaining table and have recommended that we seek Congressional action," according to his statement.
Rail is critical to the entire goods side of the economy, including agriculture, manufacturing, retail and warehousing. Freight railroads are responsible for transporting 40% of the nation's long-haul freight and a work stoppage could endanger those shipments. Trucking freight rates, which are still elevated above pre-pandemic levels, could also be pushed higher. Zandi said that the American Trucking Association estimates that a rail work stoppage would require 500,000 more trucks and 80,000 more drivers to fill the gap –- an untenable number.
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