Railroad Strike Derailed before Economic Disaster

By: Sarah Wejman

Edited By: Shiny Han and Angie Chung

With the holiday season approaching, the threat of a rail strike couldn’t have come at a worse time of year. Luckily, President Biden and Congress have settled on an agreement with the rail companies and unions, meaning there will be no strike in the near future. Despite it only coming up in the news recently, there have been conflicts between the government, rail employers, and rail unions for months. This article will present a brief overview of Congress’ legal interference with the railroads, how disagreements originated, and the resolution. 

The ability of Congress to intervene in conflicts between rail companies and unions stems from the 1926 Railway Labor Act. This power was delegated under the constitutional power of Congress to regulate commerce. In 1924, President Calvin Coolidge urged rail unions and companies to suggest legislation that could serve as conflict resolution and subdue threats of strikes. The result was a jointly drafted piece of legislation that was formally signed into law on May 20, 1926. [1] A few fundamental goals of the law are to avoid disruptions to commerce and to assist with dispute settlements regarding wages, working conditions, and contracts. [2] Congress has intervened this way 18 times before, the most recent being in 1992. [3]

On October 7, the third largest rail union in the U.S. rejected a deal with their rail company. The union, the Brotherhood of Maintenance of Way Employes (BMWE), voted against a five-year contract despite it including 24% raises and $5000 bonuses due to poor working conditions. [4] Demanding schedules is another issue, particularly for engineers and conductors, since they are on call 24-7, making it hard to take any time off. Meanwhile, although track workers have some more flexibility, their lack of paid time off is disgruntling and problematic for many. In a summary of these grievances, Tony Cardwell, the union president of BMWE, stated, “‘Railroaders are discouraged and upset with working conditions and compensation and hold their employer in low regard. Railroaders do not feel valued. They resent the fact that management holds no regard for their quality of life, illustrated by their stubborn reluctance to provide a higher quantity of paid time off, especially for sickness.’” [5] One Tennessee worker named Anthony Gunter worked “four 10-hour shifts in a row,” filled with physical labor. When his son needed surgery as a result of a heart defect he had since birth, he stayed home to be with his family. His supervisor was quite resistant and strongly urged him to return to work, claiming, “[y]ou have to be here.” Angered by this, Gunter quit his job at the railroad. [6]

The effects of the potential rail strike could have been detrimental to the economy. 40% of the nation’s freight is accounted for by railroads, and a strike would have taken a daily toll of $2 billion on the economy. [7] The strike would damage some of the United States’ most important industries by shutting down or delaying chemical manufacturing, commuter rail systems, automobile production, food processing and production, livestock feed delivery, and retail shipments. Additionally, on November 28, over 400 groups, including the U.S Chamber of Commerce, American Farm Bureau Federation, and National Association of Manufacturers, called on Congress to act on the concerns of national shipment crises. [8]

However, there has been a recent agreement that has halted the threat of a strike. After a December 9 strike was lurking, President Biden requested that Congress resolve the issue by imposing the tentative agreement reached this past fall. The initial agreement made on September 15, 2022, was between U.S rail companies and unions; of the twelve unions, four did not agree to ratify it. [9] However, to avoid a strike, all unions must agree. 

On December 1, the Senate passed a bill with an 80-15 vote that would force the unions to accept the temporary agreement they reached this past fall and make an imminent strike illegal. One measure, which entailed paid sick leave, was short 8 votes of the 60 needed to pass. [10] Both of the bills passed the House the day before. Democrats were partially in opposition to the ordeal because their pro-worker viewpoints clashed with Biden’s desire to stop the strike. Nonetheless, on December 2, President Biden signed legislation and applauded Congress’ promptness and efforts. [11] Despite the success on Congress’ end, workers were unsatisfied after the paid sick days portion did not pass; Cardwell expressed that “‘corporations won today and the working class lost’” [12].

Although the rail strike was avoided now, it is unlikely that the rail workers will settle in the future for subpar time off and work conditions. Even though the sick days bill didn't pass, politicians on both sides agreed that workers should receive a reasonable amount of paid time off. Thus, it is promising that there could be legislation to come that grants this reasonable and fair right to rail workers.

NOTES:

1. Pennsylvania Federation BMWED, “The Railway Labor Act Simplified,” Pennfedbmwe.org, 2019, http://www.pennfedbmwe.org/Docs/reference/RLA_Simplified.html.

2. “Railway Labor Act” (1926).

3. Hope Yen and Josh Funk, “Why Congress Is Intervening in a Labor Dispute between Railway Companies and Freight Workers,” PBS NewsHour, November 30, 2022, https://www.pbs.org/newshour/economy/why-congress-is-intervening-in-a-labor-dispute-between-railway-companies-and-freight-workers.

4. Josh Funk, “Large Rail Union Rejects Deal, Renewing Strike Possibility,” AP NEWS, October 10, 2022, https://apnews.com/article/business-economy-government-and-politics-0744cffe919f0d48fcc02d16c8a298b3.

5. Funk, “Large Rail Union”

6. Ian Prasad Philbrick, “A Strike, Averted.” The New York Times, December 4, 2022, sec. Briefing. https://www.nytimes.com/2022/12/04/briefing/railroad-workers-demands.html.

7. Yen, “Why Congress Is Intervening”

8. David Shepardson, “400 Groups Urge U.S. Lawmakers to Take ‘Immediate Steps’ to Block Potential Rail Strike,” Reuters, November 28, 2022, sec. United States, https://www.reuters.com/world/us/400-groups-urge-us-lawmakers-take-immediate-steps-block-potential-rail-strike-2022-11-28/. 

9. US EPA, “Railroad Agreement: Current Status and Potential Impact on Supply Chain Disruptions,” www.epa.gov, August 30, 2022, https://www.epa.gov/waterutilityresponse/railroad-agreement-current-status-and-potential-impact-supply-chain.

10. Ximena Bustillo, “Senate Passes Railroad Legislation to Prevent a Strike,” NPR, December 1, 2022, sec. Politics, https://www.npr.org/2022/12/01/1140123647/rail-strike-bill-senate.

11. US EPA, “Railroad Agreement”

12. Alex Daugherty, “Freight Rail Strike Averted, after Frenzied Negotiations,” POLITICO, December 1, 2022, https://www.politico.com/news/2022/12/01/schumer-senate-freight-rail-agreement-00071580.

BIBLIOGRAPHY:

Bustillo, Ximena. “Senate Passes Railroad Legislation to Prevent a Strike.” NPR, December 1, 2022, sec. Politics. https://www.npr.org/2022/12/01/1140123647/rail-strike-bill-senate.

Daugherty, Alex. “Freight Rail Strike Averted, after Frenzied Negotiations.” POLITICO, December 1, 2022. https://www.politico.com/news/2022/12/01/schumer-senate-freight-rail-agreement-00071580.

Funk, Josh. “Large Rail Union Rejects Deal, Renewing Strike Possibility.” AP NEWS, October 10, 2022. https://apnews.com/article/business-economy-government-and-politics-0744cffe919f0d48fcc02d16c8a298b3.

Pennsylvania Federation BMWED. “The Railway Labor Act Simplified.” Pennfedbmwe.org, 2019. http://www.pennfedbmwe.org/Docs/reference/RLA_Simplified.html.

Philbrick, Ian Prasad. “A Strike, Averted.” The New York Times, December 4, 2022, sec. Briefing. https://www.nytimes.com/2022/12/04/briefing/railroad-workers-demands.html.

Railway Labor Act (1926).

Shepardson, David. “400 Groups Urge U.S. Lawmakers to Take ‘Immediate Steps’ to Block Potential Rail Strike.” Reuters, November 28, 2022, sec. United States. https://www.reuters.com/world/us/400-groups-urge-us-lawmakers-take-immediate-steps-block-potential-rail-strike-2022-11-28/.

US EPA. “Railroad Agreement: Current Status and Potential Impact on Supply Chain Disruptions.” www.epa.gov, August 30, 2022. https://www.epa.gov/waterutilityresponse/railroad-agreement-current-status-and-potential-impact-supply-chain.

Yen, Hope, and Josh Funk. “Why Congress Is Intervening in a Labor Dispute between Railway Companies and Freight Workers.” PBS NewsHour, November 30, 2022. https://www.pbs.org/newshour/economy/why-congress-is-intervening-in-a-labor-dispute-between-railway-companies-and-freight-workers.