WH Readies Emergency Decree As Nationwide Rail Strike Looms
Sept 13, 2022 13:37:51 GMT -5
Post by schwartzie on Sept 13, 2022 13:37:51 GMT -5
White House Readies 'Emergency Decree' As Nationwide Rail Strike Looms
BY TYLER DURDEN
TUESDAY, SEP 13, 2022 - 11:44 AM
Update (1144ET): President Biden and senior administration officials are working with others in the transportation industry, including truckers, shippers, and air freight, for "contingency plans" if a rail shutdown materializes at the end of the week, a White House official told Bloomberg.
The administration is trying to understand what supply chains could be disrupted the most -- and how to utilize other forms of transportation to ensure commodities and consumer goods continue to flow across the country.
More than 100,000 railroad workers could walk off the job on Friday if freight-rail companies and unions don't reach labor agreements.
We noted that 29% of all US freight moves on the rails. Half the cargo is bulk commodities, such as energy, food, chemicals, metals, and wood productions -- the other half is shipping containers of consumer goods.
A work stoppage would cost the US economy $2 billion per day in supply chain disruptions. It wouldn't be the best optics for the Biden administration ahead of the midterm elections.
* * *
The Biden administration held talks with freight-rail companies and unions to avert more than 100,000 railroad workers walking off the job if contracts weren't agreed upon by the end of the week, according to Bloomberg.
President Biden's involvement in stalled labor talks indicates just how serious the White House is taking the possibility of a work stoppage. Most of the railroad unions involved in contract disputes have reached agreements or were very close (as of Monday), while two unions totaling more than 100,000 workers are prepared to strike on Friday if contracts aren't signed.
Bloomberg said a union-affiliated person close to the negotiations noted some progress at the bargaining table Monday, but the unions and railroads still can't agree on letting workers take unpaid time off for doctor's appointments without being penalized.
A strike ahead of the midterm elections in November would be a huge political risk for Biden and Democrats. A work stoppage would result in increased nationwide supply-chain chaos. Biden has promised the nation to be the most pro-union president ever -- so optics would be very sour if a strike were allowed.
Most of the 12 railroad unions have reached or finalized tentative agreements with BNSF Railway, CSX Corp., Kansas City Southern, Norfolk Southern Corp., and Union Pacific Corp. via collective bargaining. Two unions, the Brotherhood of Locomotive Engineers and Trainmen and the International Association of Sheet Metal Air, Rail and Transportation Workers, accounting for more than 100,000 workers, are still holding out while negotiating.
Continued at link
BY TYLER DURDEN
TUESDAY, SEP 13, 2022 - 11:44 AM
Update (1144ET): President Biden and senior administration officials are working with others in the transportation industry, including truckers, shippers, and air freight, for "contingency plans" if a rail shutdown materializes at the end of the week, a White House official told Bloomberg.
The administration is trying to understand what supply chains could be disrupted the most -- and how to utilize other forms of transportation to ensure commodities and consumer goods continue to flow across the country.
More than 100,000 railroad workers could walk off the job on Friday if freight-rail companies and unions don't reach labor agreements.
We noted that 29% of all US freight moves on the rails. Half the cargo is bulk commodities, such as energy, food, chemicals, metals, and wood productions -- the other half is shipping containers of consumer goods.
A work stoppage would cost the US economy $2 billion per day in supply chain disruptions. It wouldn't be the best optics for the Biden administration ahead of the midterm elections.
* * *
The Biden administration held talks with freight-rail companies and unions to avert more than 100,000 railroad workers walking off the job if contracts weren't agreed upon by the end of the week, according to Bloomberg.
President Biden's involvement in stalled labor talks indicates just how serious the White House is taking the possibility of a work stoppage. Most of the railroad unions involved in contract disputes have reached agreements or were very close (as of Monday), while two unions totaling more than 100,000 workers are prepared to strike on Friday if contracts aren't signed.
Bloomberg said a union-affiliated person close to the negotiations noted some progress at the bargaining table Monday, but the unions and railroads still can't agree on letting workers take unpaid time off for doctor's appointments without being penalized.
A strike ahead of the midterm elections in November would be a huge political risk for Biden and Democrats. A work stoppage would result in increased nationwide supply-chain chaos. Biden has promised the nation to be the most pro-union president ever -- so optics would be very sour if a strike were allowed.
Most of the 12 railroad unions have reached or finalized tentative agreements with BNSF Railway, CSX Corp., Kansas City Southern, Norfolk Southern Corp., and Union Pacific Corp. via collective bargaining. Two unions, the Brotherhood of Locomotive Engineers and Trainmen and the International Association of Sheet Metal Air, Rail and Transportation Workers, accounting for more than 100,000 workers, are still holding out while negotiating.
Continued at link
