President Biden expressed confidence in the nation's freight railroads' dispute between the unions and the country's freight railroads will be resolved before a nationwide railroad strike that could cripple the economy just before Christmas.
The president spoke briefly to reporters before a meeting with congressional leaders to discuss legislative priorities for the lame duck session of Congress. He stated that the looming strike must be a priority for lawmakers.
Biden said that Congress has to act to prevent it. It's not an easy call, but I think we have to do it. Business groups from across the U.S. called for Congress to take immediate action to avoid a strike. A coalition of 449 organizations led by the U.S. Chamber of Commerce said lawmakers must act before the Dec. 9 strike deadline to prevent any work stoppage, which could cost the economy an estimated $2 billion per day and exacerbate inflation.
In September, the Biden administration brokered a tentative agreement between railroad companies and the unions that threatened a strike. The agreement would give rail workers a 24% wage increase over the five-year period from 2020 to 2024, with thousands of dollars in sign-on bonuses. Union rail workers opposed to the deal are unhappy that it does not do more to address quality-of-life issues and work on skeleton crews.
The rank- and-file members of four unions have voted against Biden's proposal and are holding out to see if a new deal can be reached that addresses quality-of-life issues. All 12 unions must ratify their new agreements to prevent a work stoppage.