Updated: December 1, 4:30 p.m. EST
By Justin Franz
WASHINGTON — The U.S. Senate voted Thursday to enforce a new labor agreement on four railroad unions, preventing a possible strike that could have brought the American freight rail system to a halt in the middle of the holiday season. The bill was expected quickly be signed by President Joe Biden.
The vote ended a months-long standoff between labor and railroad management and put the industry on the front of newspapers and newscasts across the country — a rare bit of publicity, albeit unwanted, for an industry that often shuns the public spotlight. But the attention showed just how much of an impact a railroad shutdown, brought about by either a strike or a lockout, would have had on the American economy.
Earlier this week, President Joe Biden announced that he wanted Congress to quickly resolve a dispute between the unions that rejected a recent contract and six of the continent’s seven Class Is before a possible strike on December 9. Specifically, Biden wanted the House and Senate to enforce a Tentative Agreement his administration had helped forge back in September; eight unions have ratified that contract but four have rejected it, including conductors represented by SMART Transportation Division. The decision by Biden, long seen as an ally of labor, was met with dismay by union members. On Wednesday, the House passed two bills: One to enforce the deal and another that would require railroads to provide seven paid sick days off. On Thursday, those bills were voted on by the Senate, which quickly decided to enforce the contract and reject paid sick leave.
“The Senate acted with leadership and urgency with today’s vote to avert an economically devastating rail work stoppage,” said Association of American Railroads President and CEO Ian Jefferies. “As we close out this long, challenging process, none of the parties achieved everything they advocated for. The product of these agreements is a compromise by nature, but the result is one of substantial gains for rail employees. More broadly, all rail stakeholders and the economy writ large now have certainty about the path forward.
This story will be updated with additional information when it becomes available.
