Congress gets ready to intervene in railroad negotiations

The House approved a measure yesterday that would force an end to the ongoing labor dispute between railway companies and their workers, ahead of a possible nationwide strike starting December 9. It now heads to the Senate for a vote – and the stakes are pretty high.

If rail workers collectively walk off the job, it would cost the US economy a projected $2+ billion… per day.

🚂 Background: Railway companies and their unions have been bargaining on a new labor agreement for years, with major sticking points around paid sick leave and time off. The day before workers were set to walk off the job in mid-September, the Biden administration stepped in and brokered a tentative agreement.

• However, the deal was later rejected by four unions representing ~51% of all US rail workers, setting up a potential strike starting next Friday.

🏛️ So, why is Congress involved?... Under the Railway Labor Act – which was initially passed in 1926 after decades of labor disagreements – Congress can unilaterally end contract negotiations by passing legislation that forces both employers and unions to accept a new deal.

🤔 What happens if workers still refuse to return?... Even if Congress approves legislative action to block a strike – an outcome that appears likely – railway employees could gamble on an illegal walkout. Though should this occur, the unions would face hefty fines, plus the prospect of their members being fired.

+Worth mentioning: The House also passed a separate measure that would give rail workers seven days of paid sick leave in their new contract, but it’s unclear if the bill will clear the Senate in the face of Republican opposition.