House to Take Up Bill to Avoid Rail Shutdown Amid Union Objections
The House this week will look to impose a labor deal on the rail industry in a bid to avoid a looming strike that could cause widespread disruptions to supply chains. The effort, announced by Speaker Nancy Pelosi, D-Calif, came hours after President Joe Biden urged lawmakers to adopt the tentative agreement between labor unions and rail companies from September (see 2209150012) “without any modifications or delay” to “avert a potentially crippling national rail shutdown.”
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Pelosi said the agreement includes a 24% raise, time off for some medical care and other benefits. The National Railway Labor Conference, which represents major rail companies, said the agreement was the "product of good faith negotiations" and said Congress should approve it. "We support President Biden’s call for Congress to promptly implement the agreements for the remaining unions in order to avoid a work stoppage," an NRLC spokesperson said Nov. 29.
Majority Leader Steny Hoyer, D-Md., said during a press call with reporters that the House will begin debate on the bill at 9 a.m. on Nov. 30. He said the Democrats are still counting votes, but that he hopes the bill will get broad bipartisan support. "We want to get it to the Senate as soon as possible," he said. He said he's sympathetic to the issue of sick leave for railroad workers, but that a functioning freight rail system is "absolutely essential" for the economy.
But some rail workers were hoping for a better deal and were preparing to begin a strike next week. John Feltz, rail division director for the Transport Workers Union of America, said he doesn't think Congress should be involved in the negotiations, adding that workers have a right to strike under the Railway Labor Act. He also said he's concerned about the precedent this sets for future disagreements between rail companies and workers, who don't receive paid sick days.
"To me, this gives the railroads a superpower," Feltz said in an interview Nov. 29. "That allows them to dominate that negotiating table knowing that, you know what? You're not allowed to strike."
Feltz said he doesn't believe rail workers will agree to again postpone their strike -- currently set for Dec. 9 -- to try to work out a better deal with railroad companies. "We’ve done that already," said Feltz, who has worked for 48 years in the rail industry. "How much more can we push it out and push it out?"
Biden this week said he's "pro-labor" and is "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.” More than 400 trade associations warned Congress that a strike would severely disrupt freight movement and back up supply chains (see 2211280047).
Pelosi also said Congress has little choice, adding that the U.S. needs to avoid a rail shutdown. She said the strike would cause more than 750,000 workers to lose their jobs in the first two weeks, and “millions” of families would lose access to groceries, medications and other goods.
“We are reluctant to bypass the standard ratification process for the Tentative Agreement -- but we must act to prevent a catastrophic nationwide rail strike, which would grind our economy to a halt,” Pelosi said. “Under the Commerce Clause of the Constitution, Congress has both the authority and the responsibility to prevent this outcome and ensure the uninterrupted operation of critical transportation services.”
Pelosi said the House will take up a bill adopting the tentative agreement this week and send it to the Senate “with no poison pills or changes to the negotiated terms.” Although Biden said some lawmakers want to “modify the deal to either improve it for labor or for management,” Congress can’t afford to spend time on revisions. “However well-intentioned, any changes would risk delay and a debilitating shutdown,” he said. “The agreement was reached in good faith by both sides.”