Take the last train to Clarksville… if it’s running. A nationwide rail strike has been looming for weeks. It’s a big deal because trains play a critical role in hauling goods, food, and materials across the US. Railroads move 30% of the nation’s freight, and a weeklong strike could cost the country $1B. President Biden warned it could put the economy “at risk.”
- Yesterday: Congressional leaders on both sides of the aisle vowed to pass legislation to prevent the strike. House Speaker Nancy Pelosi said Congress would have a bill ready by today.
- For the sake of speed, they’ll vote on a tentative agreement that was previously hashed out in September. It would raise rail-worker wages by 24% by 2024. Eight unions voted to support it, but four didn’t (fully paid sick leave is a key sticking point). Hence the looming strike.
Dude, where’s my coal?... The last time Congress intervened to settle a nationwide rail dispute was 30 years ago. A holiday rail strike could be disastrous: halted train lines would freeze supply chains for key commodities like lumber and coal and aggravate inflation by driving up prices of consumer goods.
- Bipartisan rarity: It seems as if both Dems and Republicans want to move fast to avoid a strike. A rail halt in the weeks leading up to Christmas = major doozy.
- Pelosi said: “I don’t like going against the ability of unions to strike, but weighing the equities, we must avoid a strike.”
When shift hits the fan, alliances can shift… Biden has been a strong union backer, having previously argued against congressional intervention in labor disputes. But this week the president requested that Congress intervene to force a deal by passing legislation. Now hundreds of business groups are praising Biden while his usual allies (unions) are criticizing the move.