Railroad Strike Averted

By Gordon HopkinsA last-minute deal has averted a potentially economically crippling railroad workers strike for now. However, the threat of possible future strike still looms. The deal must still be ratified by the members of the engineers and conductors union.Working conditions were among the chief complaints of the union; such as scheduling rules that allowed workers to be called into work with little notice.A tentative deal was struck after approximately 20 hours of negotiation between rail industry and union representatives. It was at about the 12-hour mark, at 9 p.m., ET, that U.S. President Joe Biden personally called to talk to negotiators and emphasize the importance of preventing a strike, which was set to take effect 12:01 ET, Friday, September 16. The President urged negotiators to “be flexible, be creative, get a deal done,” according to one official.The U.S. economy has been struggling from major supply chain problems which has led to difficulty in obtaining everything from cars to baby formula. Supply chain is a topic at virtually every meeting of every local government entity, including Jefferson County Commissioners, city councils and village boards, wreaking havoc with local budgets. Supply disruptions have caused delays in obtaining vehicles and parts. Some waiting times are now estimated to be in years.A rail strike could have drastically exacerbated the problem.Earlier this week, Amtrak announced it was suspending a long-distance line, not wanting passengers to find themselves stranded halfway between departure and destination. Likewise, a number of freight carriers had also cancelled some shipments, particularly those carrying hazardous materials, for fear that they might be left unattended if the strike happened. Rail carriers are now scrambling to reinstate those services.This is not the first time President Biden intervened to prevent a strike. Railroad workers are covered under different labor laws than most other industries. Because the U.S. economy is so dependent on the railroads, those laws allow for greater government intervention when deemed necessary.In July of this year, as a strike loomed, a Presidential Emergency Board was created to try and find a solution and a 60-day “cooling off” ordered, which was to end Friday.The white House issued a statement on Thursday, September 15, which read, in part, “It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America’s families and communities got deliveries of what have kept us going during these difficult years. These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned. The agreement is also a victory for railway companies who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come.”The new agreement would increase worker wages by a total of 24 percent over a five year period and allow workers to take unpaid time off to attend medical appointments without penalty.

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