Back in September, the Biden administration made a splash with its announcement that it had helped broker a deal between labor unions and railroad companies. Biden was “personally involved in the talks” which the president said would deliver workers “better pay, improved working conditions, and peace of mind around their health care costs.”
Not to mention the political benefits of avoiding a strike right before the November midterm elections.
But a funny thing happened when union members actually voted on the deal Biden brokered: They turned it down, setting up a potentially disastrous pre-Christmas strike. According to The Wall Street Journal:
The engineers union backed the deal 54% to 46%, while conductors and brakemen rejected it 50.9% to 49.1%. A few hundred votes made the difference in the latter, 28,000-member group, but close doesn't count.
Those votes come after earlier votes from members of three other rail unions against the deal. The economic consequences of a strike could be huge:
A strike could cost 700,000 jobs across multiple industries and erase the equivalent of the past three months' job gains, according to an analysis by the American Chemistry Council. It could also raise producer prices by 4%. An economy enduring stagflation doesn't need the unforced error of freight disruptions.
Which means the incentive to avoid a rail shutdown is equally big, even though the disagreements between the unions and rail companies are substantial. The Journal notes:
…the possibility that Congress may need to impose a deal and stop a strike. Sens. Richard Burr and Roger Wicker introduced legislation in September that would enact the presidential board's terms, and their proposal drew bipartisan interest.
But any such congressional action will take time – something that is in short supply between now and the beginning of the new Congress in January.
Until then…sure, there's hope for a Christmas miracle in which a deal is struck, a strike avoided, and all is (mostly) well with an essential link in the nation's supply chains.
But counting on miracles is no way to run a railroad…or an economy. Bottom line: Get your Christmas shopping done early this year… …because the deadline to reach an agreement is Dec. 8.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
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Biden bragging again before the final deal. He has no sense of reality.
Good job, comrade chairman Xi den. Oh, BTW, notice anything? Store shelves are emptying because pedo Joe has let diesel fuel supplies deplete. Thank a Democrat like Joey or aoc for a non-Christmas.
The election of 2020, keystone pipeline, Afghanistan, the border, The list is just getting bigger, but why are the democrats allowed to do this? If you oppose the democrats you are considered some kind of terrible citizen, but for the citizens that use common sense it’s the democratic party that has created the issues facing the United States.
Absolutely! I don’t understand why people continue to vote for this party?!?
Free stuff
It’s not who cast the votes but who counts the votes.
Biden continues to screw America.
As Biden said, “Americans have become used to living too comfortably”. And he’s obviously doing all he can to destroy that. All the while he’s living extravagantly. LET’S GO, BRANDON!
This idiot of a President continues to support these unions that will likely raise prices AGAIN! I don’t understand why people voted for this idiot.
Major supply chain issue into 2023
be aware that in many areas Gas and Diesel is moved by trains
Everybody is worried about the supply chain. Not to worry – Buttigieg is on the job. His experience will get us through.