Unless a deal is struck between unions and railroad operators, tens of thousands of rail freight workers across the country could walk off the job as soon as Friday, making it virtually impossible to transport the vast numbers of products — from oil to grain — that are carried on trains in the United States.
The workers have reached an impasse in their labor disagreements with the large rail companies that employ them. The two main sticking points have to do with over-scheduling and sick time. The railroad companies have been unwilling to agree to labor groups’ request that workers be able to take unpaid time off for doctor appointments, and union representatives say some have received penalties for calling in sick or going to the doctor. They also say that workers often have long shifts scheduled on short notice.
Kristen South, a spokeswoman for Union Pacific, one of the biggest rail companies in the United States, said its leadership wanted “a prompt resolution that provides historic wage increases to employees and allows the railroads to restore service as soon as possible, preventing further disruption to the struggling supply chain.”
In recent days, the White House has sought to avoid the work stoppage, which would come at an inopportune time for his administration and could exacerbate already high inflation and disrupt Americans’ travel and businesses.
With the midterm elections approaching in November, Mr. Biden and other administration officials have been focusing largely on the economy in their pitch to voters, with a particular emphasis on the Inflation Reduction Act. A major labor strike — particularly an enduring one — could complicate his narrative about the health of the economy under his leadership. At the same time, the president has portrayed himself as an ally to labor, meaning that his efforts to bring the two sides to an agreement must be carefully considered.
Here’s what else to know about the potential strike:
Why would the rail workers start a strike?
The rail unions and large rail companies are at odds over policies on scheduling and sick time. While some unions are open to accepting an agreement that would include a 22 percent nominal wage increase over five years and mostly maintain the status quo for health benefits, others are still agitating for improvements to what they call “draconian” sick leave and attendance policies. A federally imposed cooling-off period for negotiations expires on Friday at 12:01 a.m.
What is the Biden administration doing about it?
Mr. Biden called union leaders and rail employers on Monday to urge them to come to an agreement, emphasizing that a strike would hurt rail customers as well as businesses across the country, The New York Times’s Jim Tankersley and Ana Swanson report. On Wednesday, Martin J. Walsh, the Labor secretary, and other White House officials hosted union and company leaders in Washington in further attempts to broker a deal. There is also discussion among Mr. Biden’s aides about potential executive action the president could take to guarantee better conditions for rail workers.
But in the event that those efforts fall short, administration officials are drawing up contingency plans for how to minimize disruptions to the economy. That includes exploring transportation alternatives, including air, sea and ground shippers, Karine Jean-Pierre, the White House press secretary, said Tuesday.
How could a strike affect supply chain problems and inflation?
Rail is the centerpiece of the global supply chain, which has already been disrupted by the pandemic, with cargo ships, trains and trucks facing continued difficulties transporting goods. A strike would slow down the circulation of goods within the United States and with overseas trade allies.
The rail system also brings some crude oil from Canada into the United States, and helps export American gasoline and diesel to Mexico. A disruption to those movements could send gas prices, which have steadily fallen since June, back up. Fuel prices are a major driver of overall inflation.
How could a strike affect travel?
Though Amtrak said the labor negotiations did not involve its own employees, it announced on Wednesday that it was canceling all long-distance passenger trains starting on Thursday because it uses freight railroads that might be disrupted by work stoppages. Amtrak does, however, control some of its own rails, and so most travel in the Northeast Corridor — including its popular Acela service between Boston and Washington — and on related branch lines to Albany, N.Y.; Harrisburg, Pa.; and Springfield, Mass., would be largely unaffected, it said. Amtrak said passengers would be able to change their reservations or receive a full refund without incurring cancellation charges.
