Government officials and businesses are bracing for a possible nationwide rail strike that would paralyze shipments of everything from clothing to cars, a potential calamity for businesses that have struggled for two years with supply chain breakdowns.
All the tentative deals are based closely on the recommendations of a Presidential Emergency Board Joe Biden appointed this summer that called for 24% raises and $5,000 in bonuses in a five-year deal that's retroactive to 2020. Those recommendations also includes one additional paid leave day a year and higher health insurance costs.
Ron Kaminkow, general secretary of the Railroad Workers United labor group that includes workers from all the rail unions, said he left the freight industry for an Amtrak engineer job in Nevada years ago because of the grueling working conditions that have only gotten worse in recent years. He's seen many other workers make that switch even though it often comes with lower pay and means giving up seniority.
Transportation Secretary Pete Buttigieg told reporters at the Detroit auto show Wednesday that the Biden administration remains focused on preventing a strike. Biden himself made calls earlier this week, but the administration is preparing to respond if a walkout does happen. With the midterm elections just weeks away, politics will play a role if Congress has to settle this dispute. Democrats are wary of becoming crosswise with their allies in organized labor, as unions tend to be strong supporters in elections. At the same time, Republicans see an opportunity to put pressure on Biden and his party if the railroads teeter toward a strike. But it's entirely possible that all sides would be blamed for a rail shutdown.
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