Business groups urge Congress to prepare for rail strike

More than 400 business groups are calling for Congress leaders to be prepared for the possibility of a freight rail strike that could cause chaos in the economy as early as next week.

Business groups led by the Chamber of Commerce wrote a letter to House Speaker Nancy Pelosi, Senate Majority Leader Chuck Schumer, House Minority Leader Kevin McCarthy and Senate Minority Leader Mitch McConnell when the railroads stop running.

Congress can impose a contract on both parties or extend a cooling-off period to keep railroads running and prevent disruptions to interstate commerce under the 1926 Railway Labor Act. The dispute between the railroads and their workers revolves around time off rules.

The 449 business groups that range from the Aluminum Association and the Beer Institute to the US Apple Association and the Window Door Manufacturers Association said this was a matter of grave urgency as even a short-term work stoppage would cause large problems. They said that the best outcome would be a voluntary agreement between the unions and freight railroads, but stressed that Congress needs to prepare for the worst.

The groups said that Congress has intervened in labor negotiations 18 times since 1926 in the event of a national rail strike and the economic destruction that would follow, despite the lack of a voluntary agreement.

A rail strike could cause shortages, spiking prices, and halting factory production as early as December 9, as early as December 9. It could disrupt commuter rail services for up to seven million travelers a day and the transportation of 6,300 carloads of food and farm products a day, among other things, according to the business groups.

The trade groups warned that many businesses will feel the impact of a national well strike on their businesses as early as December 5 in the form of service disruptions and other impacts. They noted that the potential rail strike earlier this year caused significant disruption to critical goods and products, including fertilizer, chlorine, and other items, before the strike was averted with an 11th hour tentative deal.

Congress must be prepared to intervene after the current status quo period ends on December 9 to ensure continued rail service if a deal isn't reached, the letter said. The uncertainty of the rail service during this year has created enormous anxiety.