US Congress averts railroad ‘Christmas catastrophe’ with Bill heading off Dec 9 strike

The US Senate voted 80 to 15 on Thursday to impose a tentative contract deal that was reached in September. PHOTO: AFP

WASHINGTON – The US Congress gave its final approval to a Bill blocking a national railroad strike that could have devastated the American economy, but rejected a measure that would have provided paid sick days to railroad workers.

The US Senate voted 80 to 15 on Thursday to impose a tentative contract deal reached in September on a dozen unions representing 115,000 workers, who could have gone on strike on Dec 9.

The Bill now goes to President Joe Biden, who will sign it into law. Once the Bill becomes law, any strike would be considered illegal and the strikers could be fired.

Eight of 12 unions have ratified the deal. But some labour leaders have criticised Mr Biden, a self-described friend of labour, for asking Congress to impose a contract that workers in four unions have rejected over its lack of paid sick leave.

“We have spared this country a Christmas catastrophe in our grocery stores, in our workplaces, and in our communities,” Mr Biden said in a statement that praised Congress for acting to avoid devastating economic consequences for workers’ families.

A rail strike could have frozen almost 30 per cent of US cargo shipments by weight, stoke already surging inflation, cost the American economy as much as US$2 billion (S$2.7 billion) a day and stranded millions of rail passengers.

The US House of Representatives approved the Bill to block a strike on Wednesday and separately voted to require seven days of paid sick leave for rail workers.

Paid sick leave was one of the outstanding issues in the negotiations. There are no paid short-term sick days under the tentative deal after unions asked for 15 and railroads settled on one personal day.

Teamsters president Sean O’Brien harshly criticised the Senate vote on sick leave.

“Rail carriers make record profits. Rail workers get zero paid sick days. Is this OK? Paid sick leave is a basic human right. This system is failing,” Mr O’Brien wrote on Twitter.

Congress invoked its sweeping powers to block strikes involving transportation - authority it does not have in other labour disputes - because of the significant impact a rail stoppage could have on the US economy, especially at the height of the holiday shopping season.

Mr Biden has praised the proposed contract, which includes a 24 per cent compounded pay increase over five years and five annual US$1,000 lump-sum payments. He asked Congress to impose the contract without any modifications.

American Association of Railroads CEO Ian Jefferies praised the vote.

“None of the parties achieved everything they advocated for” Mr Jefferies said in a statement. “Without a doubt, there is more to be done to further address our employees’ work-life balance concerns.” REUTERS

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