Whoops, sorry, that headline should have read “Railroad Corporations”, my mistake.
Statement from President Joe Biden on Averting a Rail Shutdown
I am calling on Congress to pass legislation immediately to adopt the Tentative Agreement between railroad workers and operators – without any modifications or delay – to avert a potentially crippling national rail shutdown.
This agreement was approved by labor and management negotiators in September. On the day that it was announced, labor leaders, business leaders, and elected officials all hailed it as a fair resolution of the dispute between the hard-working men and women of the rail freight unions and the companies in that industry.
The deal provides a historic 24% pay raise for rail workers. It provides improved health care benefits. And it provides the ability of operating craft workers to take unscheduled leave for medical needs.
Since that time, the majority of the unions in the industry have voted to approve the deal.
During the ratification votes, the Secretaries of Labor, Agriculture, and Transportation have been in regular touch with labor leaders and management. They believe that there is no path to resolve the dispute at the bargaining table and have recommended that we seek Congressional action.
Let me be clear: a rail shutdown would devastate our economy. Without freight rail, many U.S. industries would shut down. My economic advisors report that as many as 765,000 Americans – many union workers themselves – could be put out of work in the first two weeks alone. Communities could lose access to chemicals necessary to ensure clean drinking water. Farms and ranches across the country could be unable to feed their livestock.
As a proud pro-labor President, I am reluctant to override the ratification procedures and the views of those who voted against the agreement. But in this case – where the economic impact of a shutdown would hurt millions of other working people and families – I believe Congress must use its powers to adopt this deal.
Some in Congress want to modify the deal to either improve it for labor or for management. However well-intentioned, any changes would risk delay and a debilitating shutdown. The agreement was reached in good faith by both sides.
I share workers’ concern about the inability to take leave to recover from illness or care for a sick family member. No one should have to choose between their job and their health – or the health of their children. I have pressed legislation and proposals to advance the cause of paid leave in my two years in office, and will continue to do so. Every other developed country in the world has such protections for its workers.
But at this critical moment for our economy, in the holiday season, we cannot let our strongly held conviction for better outcomes for workers deny workers the benefits of the bargain they reached, and hurl this nation into a devastating rail freight shutdown.
Congress has the power to adopt the agreement and prevent a shutdown. It should set aside politics and partisan division and deliver for the American people. Congress should get this bill to my desk well in advance of December 9th so we can avoid disruption.
Way to have the back of the working class, Joe, but uh, just a couple of questions… if this deal is really so great for the unions, with the 24% pay raise, the majority of the unions leadership adopting the deal, then why is there fear of a strike? Why is there “no path to resolve the dispute at the bargaining table?”
I don’t want to copy too much from other people’s stories, so I’ll just drop in links at the bottom and include a little from a previous story by xaxnar:
Among other things:
- Railroads have cut their work force by roughly a third over the last few years — while making surviving employees work harder to make up the difference and increase shareholder value.
- Railroads are trying to get one-man crews to further reduce payroll costs. Imagine one person responsible for a train 3 miles long that might be carrying hazardous shipments — all alone if something happens and he has to stop it, secure it, and walk the length of the train to find out what the problem is. Help could be hours away.
- Speaking of long trains, railroads have increased train length; one long train instead of several shorter ones means fewer crew members needed — but also sidings that are no longer long enough, multiple crossings being blocked by a single train, and other safety issues.
- Rail service has deteriorated even while railroads have been making record profits. Some shippers have been forced to apply for emergency action by the government to get the shipments they need when they need them, instead of at the railroad’s convenience.
- Railroads don’t invest in going after new customers unless it fits the profit margins they are trying to maximize. There are thousands of trucks on the roads that could be on rail, and customers who could be served… IF they could count on reliable and affordable service from the railroads, and IF the railroads could be bothered to offer it.
- Precision Scheduled Railroading is cannibalizing the industry — it’s all about maximizing short-term profit while cutting costs as much as possible. It’s great for shareholders, but not workers, rail passengers, or customers.
- Not surprisingly, railroads have been unable to hire new workers despite the pay because the working conditions are so bad. Career railroaders are quitting.
- Railroads are being run to satisfy Wall Street, by people who know more about pinching pennies than keeping trains moving.
- The Big Four railroads like to talk about how green rail transport is — but they also funded climate denial for years to protect their fossil fuel traffic of coal and oil.
- This strike isn’t going to just disrupt supply chains — Amtrak is already suspending service on some routes — make sure Amtrak will be running if you have tickets to go somewhere — the situation is in flux. Some commuter service will be affected, and there will be a lot more trucks on the highways — if they can find enough drivers.
- Freight railroads are suspending shipments of hazardous materials as a precaution — and to apply pressure to stop the strike.
- The trucking industry is going to be disrupted as well — because a fair amount of their shipments are linked to rail.
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