Rail Strike Adverted
As a Sunday deadline loomed in ongoing labor discussions between rail carriers and unions, President Biden last Friday signed an executive order to create a Presidential Emergency Board (PEB). The move was an essential step in keeping the collective bargaining process on track, as well as keeping the nation's railways operating.
The widely expected move will keep 115,000 rail workers on the job while the arbitrators develop a set of contract recommendations for both sides to consider. The administration had to act before this week to prevent a possible strike. A new round of negotiations is likely after those recommendations are issued.
If the railroads and their 12 unions can’t agree on a contract within the next 60 days, Congress would likely step in to prevent a strike by voting to impose terms or taking other action.
The United Rail Unions coalition said the labor unions are preparing to make their case to the board of arbitrators, and believe that current economic data shows the raises they are asking for “are more than warranted when compared to our memberships’ contribution to the record profits of the rail carriers.”
Any prolonged rail strike could cripple the supply of fertilizer and ag inputs that have been recovering from the backlogs and delays because of worker shortages at the ports, trucking companies and railroads as demand for imports surged.
Agribusiness groups had urged The Administration to take this step to ensure the railroads would continue operating. They worry about what a strike or lockout would mean for the fragile supply chain because railroads deliver all kinds of raw materials, finished products and imported goods that businesses rely on. A railroad strike could jeopardize the health of the economy.
The widely expected move will keep 115,000 rail workers on the job while the arbitrators develop a set of contract recommendations for both sides to consider. The administration had to act before this week to prevent a possible strike. A new round of negotiations is likely after those recommendations are issued.
If the railroads and their 12 unions can’t agree on a contract within the next 60 days, Congress would likely step in to prevent a strike by voting to impose terms or taking other action.
The United Rail Unions coalition said the labor unions are preparing to make their case to the board of arbitrators, and believe that current economic data shows the raises they are asking for “are more than warranted when compared to our memberships’ contribution to the record profits of the rail carriers.”
Any prolonged rail strike could cripple the supply of fertilizer and ag inputs that have been recovering from the backlogs and delays because of worker shortages at the ports, trucking companies and railroads as demand for imports surged.
Agribusiness groups had urged The Administration to take this step to ensure the railroads would continue operating. They worry about what a strike or lockout would mean for the fragile supply chain because railroads deliver all kinds of raw materials, finished products and imported goods that businesses rely on. A railroad strike could jeopardize the health of the economy.