Tentative Deal Between Unions, Rail Carriers Reportedly Includes Sick Time Win for Workers
"It's definitely premature to be hailing Biden as an economy-saving dealmaker," argued one labor reporter. "Workers haven't even been walked through the particulars yet, let alone determined whether they're willing to accept it."
September 15, 2022
This story has been updated...
The Biden White House on Thursday announced a tentative agreement between unions and rail carriers that reportedly includes a win for workers on sick leave, an issue central to the dispute that nearly resulted in a nationwide strike.
The Washington Post reported that the deal, which still must be approved by union members, would give rail workers "the ability to take days off for medical care without being subject to discipline."
The Post's Lauren Kaori Gurley noted on Twitter that "workers will receive voluntary assigned days off and a single additional paid day off. (They previously did not receive sick days.)"
"The agreement provides members with the ability to take unpaid days for medical care without being subject to attendance policies," Gurley added.
In a statement Thursday morning, President Joe Biden said the deal represents "a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America's families and communities got deliveries of what have kept us going during these difficult years. "
"These rail workers will get better pay, improved working conditions, and peace of mind around their healthcare costs: all hard-earned," Biden continued. "The agreement is also a victory for railway companies who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come."
Sick leave was the key sticking point in the tense and consequential negotiations between hugely profitable freight rail carriers and their employees, who have been working for three years without a contract as railroads see booming profits. It's not clear whether the agreed-upon policy changes will be sufficient for union members.
"It's definitely premature to be hailing Biden as an economy-saving dealmaker," argued HuffPost labor reporter Dave Jamieson. "Workers haven't even been walked through the particulars yet, let alone determined whether they're willing to accept it."
The tentative deal includes a 24% raise for rail workers by 2024 and an immediate 13.5% raise.
A statement from the National Carriers' Conference Committee, which represents the major railroads, contained no mention of attendance policies that unions said have been ruining their members' lives.
"Our members are being terminated for getting sick or for attending routine medical visits as we crawl our way out of a worldwide pandemic," the heads of two rail unions said Sunday.
The White House announced the agreement after frenzied talks between administration officials, including Labor Secretary Marty Walsh, and representatives of the unions and rail companies over the past 24 hours—a last-ditch effort aimed at averting a strike with massive implications for the U.S. economy.
The unions, for their part, accused rail carriers of engaging in "corporate extortion" by blocking shipments and shuttering other operations before a single worker had walked off the job, a signal that companies were moving in the direction of a damaging lockout.
The White House has faced significant criticism over its role in the dispute: Last month, an emergency board formed by Biden recommended a compromise deal that excluded sick leave improvements that rail workers had been demanding and fell short in other key areas, including healthcare costs.
On Wednesday, Sen. Bernie Sanders (I-Vt.) blocked a GOP effort to force rail workers to accept the emergency board's recommended agreement.
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By JOSH BOAK and ZEKE MILLER
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A CSX freight train travels through Alexandria, Va. on Thursday, Sept. 15, 2022. President Joe Biden said Thursday that a tentative railway labor agreement has been reached, averting a strike that could have been devastating to the economy before the pivotal midterm elections. (AP Photo/Kevin Wolf)
WASHINGTON (AP) — President Joe Biden said Thursday that a tentative railway labor agreement has been reached, averting a strike that could have been devastating to the economy before the pivotal midterm elections.
Railroads and union representatives had been in negotiations for 20 hours at the Labor Department on Wednesday to hammer out a deal, as there was a risk of a strike starting on Friday that could have shut down rail lines across the country.
Biden made a key phone call to Labor Secretary Marty Walsh at 9 p.m. as the talks were ongoing after Italian dinner had been brought in, according to a White House official who spoke to The Associated Press on the condition of anonymity to discuss closed negotiations. The president told the negotiators to consider the harm to families, farmers and businesses if a shutdown occurred.
What resulted from the back and forth was a tentative agreement that will go to union members for a vote after a post-ratification cooling off period of several weeks.
“These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned,” Biden said. “The agreement is also a victory for railway companies who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come.”
The strike would also have disrupted passenger traffic as well as freight rail lines, because Amtrak and many commuter railroads operate on tracks owned by the freight railroads. Amtrak had already canceled a number of its long-distance trains this week, and said the rest of its long-distance trains would stop Thursday ahead of the strike deadline.
Following the tentative agreement, Amtrak said it was “working to quickly restore canceled trains and reaching out to impacted customers to accommodate on first available departures.”
The five-year deal, retroactive to 2020, includes the 24% raises and $5,000 in bonuses that a Presidential Emergency Board recommended this summer. But railroads also agreed to ease their strict attendance policies to address some of the unions’ concerns about working conditions.
WASHINGTON (AP) — President Joe Biden said Thursday that a tentative railway labor agreement has been reached, averting a strike that could have been devastating to the economy before the pivotal midterm elections.
Railroads and union representatives had been in negotiations for 20 hours at the Labor Department on Wednesday to hammer out a deal, as there was a risk of a strike starting on Friday that could have shut down rail lines across the country.
Biden made a key phone call to Labor Secretary Marty Walsh at 9 p.m. as the talks were ongoing after Italian dinner had been brought in, according to a White House official who spoke to The Associated Press on the condition of anonymity to discuss closed negotiations. The president told the negotiators to consider the harm to families, farmers and businesses if a shutdown occurred.
What resulted from the back and forth was a tentative agreement that will go to union members for a vote after a post-ratification cooling off period of several weeks.
“These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned,” Biden said. “The agreement is also a victory for railway companies who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come.”
The strike would also have disrupted passenger traffic as well as freight rail lines, because Amtrak and many commuter railroads operate on tracks owned by the freight railroads. Amtrak had already canceled a number of its long-distance trains this week, and said the rest of its long-distance trains would stop Thursday ahead of the strike deadline.
Following the tentative agreement, Amtrak said it was “working to quickly restore canceled trains and reaching out to impacted customers to accommodate on first available departures.”
The five-year deal, retroactive to 2020, includes the 24% raises and $5,000 in bonuses that a Presidential Emergency Board recommended this summer. But railroads also agreed to ease their strict attendance policies to address some of the unions’ concerns about working conditions.
Railroad workers will now be able to take unpaid days off for doctor’s appointments without being penalized under railroad attendance rules. Previously, workers would lose points under the attendance systems that the BNSF and Union Pacific railways had adopted, and they could be disciplined if they lost all their points.
The unions that represent the conductors and engineers who drive the trains had pressed hard for changes in the attendance rules, and they said this deal sets a precedent that they will be able to negotiate over those kinds of rules in the future. But workers will still have to vote whether those changes are enough to approve the deal.
The threat of a shutdown had put Biden in a delicate spot politically. The Democratic president believes unions built the middle class, but he also knew a rail worker strike could damage the economy ahead of the midterms, when majorities in both chambers of Congress, key governorships and scores of important state offices will be up for grabs.
That left him in the awkward position on Wednesday. He flew to Detroit, a stalwart of the labor movement, to espouse the virtues of unionization, while members of his administration went all-out to keep talks going in Washington between the railroads and unionized workers.
As the administration was trying to forge peace, United Auto Workers Local 598 member Ryan Buchalski introduced Biden at the Detroit auto show as “the most union- and labor-friendly president in American history” and someone who was “kickin’ ass for the working class.” Buchalski harked back to the pivotal sit-down strikes by autoworkers in the 1930s.
In the speech that followed, Biden recognized that he wouldn’t be in the White House without the support of unions such as the UAW and the International Brotherhood of Electrical Workers, saying autoworkers “brung me to the dance.”
But without a deal among the 12 unions in talks back in Washington, Biden also knew that a stoppage could halt shipments of food and fuel at a cost of $2 billion a day.
Far more was at stake than sick leave and salary bumps for 115,000 unionized railroad workers. The ramifications could have extended to control of Congress and to the shipping network that keeps factories rolling, stocks the shelves of stores and stitches the U.S. together as an economic power.
White House press secretary Karine Jean-Pierre, speaking aboard Air Force One as it jetted to Detroit, said a rail worker strike was “an unacceptable outcome for our economy and the American people.”
Biden faced the same kind of predicament faced by Theodore Roosevelt in 1902 with coal and Harry Truman in 1952 with steel — how do you balance the needs of labor and business in doing what’s best for the nation? Railways were so important during World War I that Woodrow Wilson temporarily nationalized the industry to keep goods flowing and prevent strikes.
Union activism has surged under Biden, as seen in a 56% increase in petitions for union representation with the National Labor Relations Board so far this fiscal year.
With the economy still recovering from the supply chain disruptions of the coronavirus pandemic, the president’s goal was to keep all parties so a deal could be reached. Biden also knew a stoppage could worsen the dynamics that have contributed to soaring inflation and created a political headache for the party in power.
Eddie Vale, a Democratic political consultant and former AFL-CIO communications aide, said the White House pursued the correct approach at a perilous moment.
“No one wants a railroad strike, not the companies, not the workers, not the White House,” he said. “No one wants it this close to the election.”
Sensing political opportunity, Senate Republicans moved Wednesday to pass a law to impose contract terms on the unions and railroad companies to avoid a shutdown. Democrats, who control both chambers in Congress, blocked it.
The economic impact of a potential strike was not lost on members of the Business Roundtable, a Washington-based group that represents CEOs. It issued its quarterly outlook for the economy Wednesday.
“We’ve been experiencing a lot of headwinds from supply chain problems since the pandemic started and those problems would be geometrically magnified,” Josh Bolten, the group’s CEO, told reporters. “There are manufacturing plants around the country that likely have to shut down. ... There are critical products to keep our water clean.”
By 5:05 a.m. Thursday, it was clear that the hard work across the government, unions and railway companied had paid off as Biden announced the deal, calling it “an important win for our economy and the American people.”
___
AP writer Josh Funk contributed.
Amtrak says it’s working quickly to restore canceled trains
By The Associated Press
An Amtrak passenger train departs Chicago in the early evening headed south Wednesday, Sept. 14, 2022, in Chicago. President Joe Biden said Thursday, Sept. 15, 2022, that a tentative railway labor agreement has been reached, averting a potentially devastating strike before the pivotal midterm elections. (AP Photo/Charles Rex Arbogast, File)
Amtrak says it is working to quickly restore canceled trains after President Joe Biden announced that a tentative railway labor agreement has been reached.
Amtrak said Thursday that it is reaching out to impacted customers to accommodate on first available departures.
Amtrak had canceled a number of its long-distance trains this week as a potential strike loomed.
A strike would have disrupted passenger traffic as well as freight rail lines, because Amtrak and many commuter railroads operate on tracks owned by the freight railroads.
Railroads and union representatives had been in negotiations for 20 hours at the Labor Department on Wednesday to hammer out a deal, as there was a risk of a strike starting on Friday that could have shut down rail lines across the country.
The tentative agreement will go to union members for a vote after a post-ratification cooling off period of several weeks.
By The Associated Press
An Amtrak passenger train departs Chicago in the early evening headed south Wednesday, Sept. 14, 2022, in Chicago. President Joe Biden said Thursday, Sept. 15, 2022, that a tentative railway labor agreement has been reached, averting a potentially devastating strike before the pivotal midterm elections. (AP Photo/Charles Rex Arbogast, File)
Amtrak says it is working to quickly restore canceled trains after President Joe Biden announced that a tentative railway labor agreement has been reached.
Amtrak said Thursday that it is reaching out to impacted customers to accommodate on first available departures.
Amtrak had canceled a number of its long-distance trains this week as a potential strike loomed.
A strike would have disrupted passenger traffic as well as freight rail lines, because Amtrak and many commuter railroads operate on tracks owned by the freight railroads.
Railroads and union representatives had been in negotiations for 20 hours at the Labor Department on Wednesday to hammer out a deal, as there was a risk of a strike starting on Friday that could have shut down rail lines across the country.
The tentative agreement will go to union members for a vote after a post-ratification cooling off period of several weeks.
Biden announces tentative deal to avert national rail strike
The National Carriers Conference Committee represents management at over 30 railroads and the Coordinated Bargaining Coalition is made up of a dozen rail labor unions. Five of them -- smaller unions representing 21,000 workers -- had previously reached new agreements with the railroads. The others have now agreed to a new deal.
RELATED White House gets involved in railroad-union negotiations
Biden will speak more about the agreement at the White House. He is scheduled to speak at 11 a.m. EDT.
Labor Secretary Marty Walsh has been involved in helping the negotiations along and the White House got involved in the labor dispute this week.
"It is a win for tens of thousands of rail workers who worked tirelessly through the [COVID-19] pandemic to ensure that America's families and communities got deliveries of what has kept us going during these difficult years," Biden, an avid train rider during his days as a U.S. senator, said in a statement Thursday.
RELATED Looming rail strike would cost U.S. economy $2 billion per day, industry report says
"These rail workers will get better pay, improved working conditions and peace of mind around their healthcare costs: all hard-earned. The agreement is also a victory for railway companies, who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come."
Biden had made a phone call to Walsh late on Wednesday and urged him to underscore the harm to the economy, families and businesses that a strike would bring. It was estimated previously that the strike would have cost the domestic economy $2 billion per day.
The National Carriers Conference Committee represents management at over 30 railroads and the Coordinated Bargaining Coalition is made up of a dozen rail labor unions. Five of them -- smaller unions representing 21,000 workers -- had previously reached new agreements with the railroads.
Thursday's deal came after Amtrak, the nation's largest passenger rail company, announced that it had canceled all long-distance trains nationwide due to the looming strike.
Biden’s tight spot: a union backer out to avert rail strike
By JOSH BOAK and ZEKE MILLER
Then-Democratic presidential candidate Joe Biden speaks at the Amtrak Johnstown Train Station, Sept. 30, 2020, in Johnstown, Pa. President Joe Biden believes that unions built the middle class. He also knows a rail worker strike could damage the economy ahead of midterm elections. That leaves him in the awkward position of espousing the virtues of unionization even as members of his administration work to keep talks going in Washington between the railroads and unionized workers aimed at averting a shutdown. (AP Photo/Andrew Harnik, File)
WASHINGTON (AP) — President Joe Biden believes unions built the middle class. He also knows a rail worker strike could damage the economy ahead of midterm elections.
That left him in the awkward position Wednesday of espousing the virtues of unionization in Detroit, a stalwart of the labor movement, while members of his administration went all-out to keep talks going in Washington between the railroads and unionized workers in hopes of averting a shutdown.
United Auto Workers Local 598 member Ryan Buchalski introduced Biden at the Detroit auto show as “the most union- and labor-friendly president in American history” and someone who was “kickin’ ass for the working class.” Buchalski harked back to the pivotal sitdown strikes by autoworkers in the 1930s.
In the speech that followed, Biden recognized that he wouldn’t be in the White House without the support of unions such as the UAW and the International Brotherhood of Electrical Workers, saying autoworkers “brung me to the dance.”
But back in Washington, officials in his administration were in tense negotiations to prevent a strike — one of the most powerful sources of leverage that unions have to bring about change and improve working conditions.
A stoppage could begin as early as Friday if both sides can’t agree on a deal. Out of the 12 unions involved, the International Association of Machinists and Aerospace Workers District 19 rejected a deal but agreed to prolong talks through Sept. 29. That bought a bit of time, but not necessarily any more certainty as a stoppage is still possible that could halt shipments of food and fuel at a cost of $2 billion a day.
Far more is at stake than sick leave and salary bumps for 115,000 unionized railroad workers. The ramifications could extend to control of Congress and to the shipping network that keeps factories rolling, stocks the shelves of stores and stitches the U.S. together as an economic power.
That’s why White House press secretary Karine Jean-Pierre, speaking aboard Air Force One as it jetted to Detroit, said a rail worker strike was “an unacceptable outcome for our economy and the American people.” The rail lines and their workers’ representatives “need to stay at the table, bargain in good faith to resolve outstanding issues, and come to an agreement,” she said.
Biden faces the same kind of predicament faced by Theodore Roosevelt in 1902 with coal and Harry Truman in 1952 with steel — how do you balance the needs of labor and business in doing what’s best for the nation? Railways were so important during World War I that Woodrow Wilson temporarily nationalized the industry to keep goods flowing and prevent strikes.
Inside the White House, aides don’t see a contradiction between Biden’s devotion to unions and his desire to avoid a strike. Union activism has surged under Biden, as seen in a 56% increase in petitions for union representation with the National Labor Relations Board so far this fiscal year.
One person familiar with the situation, who spoke on condition of anonymity to discuss White House deliberations on the matter, said Biden’s mindset in approaching the debate was that he’s the president of the entire country, not just for organized labor.
With the economy still recovering from the supply chain disruptions of the pandemic, the president’s goal is to keep all parties at the table until a deal is finalized. The person said the White House saw a commitment to keep negotiating in good faith as the best way to avoid a shutdown while exercising the principles of collective bargaining that Biden holds dear.
Biden also knows a stoppage could worsen the dynamics that have contributed to soaring inflation and created a political headache for the party in power.
Eddie Vale, a Democratic political consultant and former AFL-CIO communications aide, said the White House is pursuing the correct approach at a perilous moment.
“No one wants a railroad strike, not the companies, not the workers, not the White House,” he said. “No one wants it this close to the election.”
Vale added that the sticking point in the talks was about “respect basically — sick leave and bereavement leave,” issues Biden has supported in speeches and with his policy proposals.
Jake Rosenfeld, a sociologist at Washington University in St. Louis, noted that the sticking points in the talks involve “more schedule predictability, and the ability to take time off to deal with routine medical procedures as well as emergencies.”
On a policy front, the administration generally supports these demands, and that lessens their “willingness to really play hardball with the unions who have yet to settle,” said Rosenfeld, who wrote the book “What Unions No Longer Do.”
Sensing political opportunity, Senate Republicans moved Wednesday to pass a law to impose contract terms on the unions and railroad companies to avoid a shutdown. Democrats, who control both chambers in Congress, blocked it.
“If a strike occurs and paralyzes food, fertilizer and energy shipments nationwide, it will be because Democrats blocked this bill,” said Senate Minority Leader Mitch McConnell, R-Ky.
The economic impact of a potential strike was not lost on members of the Business Roundtable, a Washington-based group that represents CEOs. It issued its quarterly outlook for the economy Wednesday.
“We’ve been experiencing a lot of headwinds from supply chain problems since the pandemic started and those problems would be geometrically magnified,” Josh Bolten, the group’s CEO, told reporters. “There are manufacturing plants around the country that likely have to shut down. ... There are critical products to keep our water clean.”
The roundtable also had a meeting of its board of directors Wednesday. But Bolten said Lance Fritz, chair of the board’s international committee and the CEO of Union Pacific railroad, would miss it “because he’s working hard trying to bring the strike to a resolution.”
Back at the Labor Department, negotiators ordered Italian food as talks dragged into Wednesday night.
The National Carriers Conference Committee represents management at over 30 railroads and the Coordinated Bargaining Coalition is made up of a dozen rail labor unions. Five of them -- smaller unions representing 21,000 workers -- had previously reached new agreements with the railroads. The others have now agreed to a new deal.
File Photo by Jim Ruymen/UPI | License Photo
Sept. 15 (UPI) -- President Joe Biden said Thursday a new labor agreement has been reached between railroads and thousands of rail workers, averting a strike that could have halted trains nationwide and harmed the economy.
The White House announced the tentative agreement, which followed marathon negotiations on Wednesday intended to prevent rail workers from walking off the job beginning Friday.
Negotiators for both sides met for talks at the Labor Department in Washington and spent about 20 hours moving toward a new agreement for better working conditions.
The deadline to come up with an agreement between dozens of railroads and the unions that make up the Coordinated Bargaining Coalition was Friday. The coalition represents more than 100,000 rail workers and rail freight across the United States would cease if they walk.
Sept. 15 (UPI) -- President Joe Biden said Thursday a new labor agreement has been reached between railroads and thousands of rail workers, averting a strike that could have halted trains nationwide and harmed the economy.
The White House announced the tentative agreement, which followed marathon negotiations on Wednesday intended to prevent rail workers from walking off the job beginning Friday.
Negotiators for both sides met for talks at the Labor Department in Washington and spent about 20 hours moving toward a new agreement for better working conditions.
The deadline to come up with an agreement between dozens of railroads and the unions that make up the Coordinated Bargaining Coalition was Friday. The coalition represents more than 100,000 rail workers and rail freight across the United States would cease if they walk.
RELATED White House gets involved in railroad-union negotiations
Biden will speak more about the agreement at the White House. He is scheduled to speak at 11 a.m. EDT.
Labor Secretary Marty Walsh has been involved in helping the negotiations along and the White House got involved in the labor dispute this week.
"It is a win for tens of thousands of rail workers who worked tirelessly through the [COVID-19] pandemic to ensure that America's families and communities got deliveries of what has kept us going during these difficult years," Biden, an avid train rider during his days as a U.S. senator, said in a statement Thursday.
RELATED Looming rail strike would cost U.S. economy $2 billion per day, industry report says
"These rail workers will get better pay, improved working conditions and peace of mind around their healthcare costs: all hard-earned. The agreement is also a victory for railway companies, who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come."
Biden had made a phone call to Walsh late on Wednesday and urged him to underscore the harm to the economy, families and businesses that a strike would bring. It was estimated previously that the strike would have cost the domestic economy $2 billion per day.
The National Carriers Conference Committee represents management at over 30 railroads and the Coordinated Bargaining Coalition is made up of a dozen rail labor unions. Five of them -- smaller unions representing 21,000 workers -- had previously reached new agreements with the railroads.
Thursday's deal came after Amtrak, the nation's largest passenger rail company, announced that it had canceled all long-distance trains nationwide due to the looming strike.
File Photo by Kevin Dietsch/UPI
The remaining unions continued to move toward the deadline Friday without a deal. The greatest issues at the center of the dispute involved working conditions and rules that force engineers and conductors to be on call to work seven days a week. Two unions representing conductors and engineers were holding out for more paid sick time and other improved conditions.
In the end, negotiators on both sides arrived at what they felt was a fair deal.
"As a result, we will keep Americans on the job in all the industries in this country that are touched by this vital industry," Biden said.
"The hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought. With unemployment still near record lows and signs of progress in lowering costs, tonight's agreement allows us to continue to fight for long-term economic growth that finally works for working families."
Thursday's deal came after Amtrak, the nation's largest passenger rail company, announced that it had canceled all long-distance trains nationwide due to the looming strike. The strike concerned freight rail operations, but the logistics of the U.S. rail system and the role of rail workers meant that passenger service would also be disrupted by a walkout.
One of the unions, the International Association of Machinists and Aerospace Workers District Lodge 19, had said earlier Wednesday that its members rejected a "tentative agreement" and authorized a strike. It wasn't clear Thursday if that remains to be the case, or whether the deal announced by the White House includes the support of the IAM.
The remaining unions continued to move toward the deadline Friday without a deal. The greatest issues at the center of the dispute involved working conditions and rules that force engineers and conductors to be on call to work seven days a week. Two unions representing conductors and engineers were holding out for more paid sick time and other improved conditions.
In the end, negotiators on both sides arrived at what they felt was a fair deal.
"As a result, we will keep Americans on the job in all the industries in this country that are touched by this vital industry," Biden said.
"The hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought. With unemployment still near record lows and signs of progress in lowering costs, tonight's agreement allows us to continue to fight for long-term economic growth that finally works for working families."
Thursday's deal came after Amtrak, the nation's largest passenger rail company, announced that it had canceled all long-distance trains nationwide due to the looming strike. The strike concerned freight rail operations, but the logistics of the U.S. rail system and the role of rail workers meant that passenger service would also be disrupted by a walkout.
One of the unions, the International Association of Machinists and Aerospace Workers District Lodge 19, had said earlier Wednesday that its members rejected a "tentative agreement" and authorized a strike. It wasn't clear Thursday if that remains to be the case, or whether the deal announced by the White House includes the support of the IAM.
BACKGROUND
Biden’s tight spot: a union backer out to avert rail strike
By JOSH BOAK and ZEKE MILLER
Then-Democratic presidential candidate Joe Biden speaks at the Amtrak Johnstown Train Station, Sept. 30, 2020, in Johnstown, Pa. President Joe Biden believes that unions built the middle class. He also knows a rail worker strike could damage the economy ahead of midterm elections. That leaves him in the awkward position of espousing the virtues of unionization even as members of his administration work to keep talks going in Washington between the railroads and unionized workers aimed at averting a shutdown. (AP Photo/Andrew Harnik, File)
WASHINGTON (AP) — President Joe Biden believes unions built the middle class. He also knows a rail worker strike could damage the economy ahead of midterm elections.
That left him in the awkward position Wednesday of espousing the virtues of unionization in Detroit, a stalwart of the labor movement, while members of his administration went all-out to keep talks going in Washington between the railroads and unionized workers in hopes of averting a shutdown.
United Auto Workers Local 598 member Ryan Buchalski introduced Biden at the Detroit auto show as “the most union- and labor-friendly president in American history” and someone who was “kickin’ ass for the working class.” Buchalski harked back to the pivotal sitdown strikes by autoworkers in the 1930s.
In the speech that followed, Biden recognized that he wouldn’t be in the White House without the support of unions such as the UAW and the International Brotherhood of Electrical Workers, saying autoworkers “brung me to the dance.”
But back in Washington, officials in his administration were in tense negotiations to prevent a strike — one of the most powerful sources of leverage that unions have to bring about change and improve working conditions.
A stoppage could begin as early as Friday if both sides can’t agree on a deal. Out of the 12 unions involved, the International Association of Machinists and Aerospace Workers District 19 rejected a deal but agreed to prolong talks through Sept. 29. That bought a bit of time, but not necessarily any more certainty as a stoppage is still possible that could halt shipments of food and fuel at a cost of $2 billion a day.
Far more is at stake than sick leave and salary bumps for 115,000 unionized railroad workers. The ramifications could extend to control of Congress and to the shipping network that keeps factories rolling, stocks the shelves of stores and stitches the U.S. together as an economic power.
That’s why White House press secretary Karine Jean-Pierre, speaking aboard Air Force One as it jetted to Detroit, said a rail worker strike was “an unacceptable outcome for our economy and the American people.” The rail lines and their workers’ representatives “need to stay at the table, bargain in good faith to resolve outstanding issues, and come to an agreement,” she said.
Biden faces the same kind of predicament faced by Theodore Roosevelt in 1902 with coal and Harry Truman in 1952 with steel — how do you balance the needs of labor and business in doing what’s best for the nation? Railways were so important during World War I that Woodrow Wilson temporarily nationalized the industry to keep goods flowing and prevent strikes.
Inside the White House, aides don’t see a contradiction between Biden’s devotion to unions and his desire to avoid a strike. Union activism has surged under Biden, as seen in a 56% increase in petitions for union representation with the National Labor Relations Board so far this fiscal year.
One person familiar with the situation, who spoke on condition of anonymity to discuss White House deliberations on the matter, said Biden’s mindset in approaching the debate was that he’s the president of the entire country, not just for organized labor.
With the economy still recovering from the supply chain disruptions of the pandemic, the president’s goal is to keep all parties at the table until a deal is finalized. The person said the White House saw a commitment to keep negotiating in good faith as the best way to avoid a shutdown while exercising the principles of collective bargaining that Biden holds dear.
Biden also knows a stoppage could worsen the dynamics that have contributed to soaring inflation and created a political headache for the party in power.
Eddie Vale, a Democratic political consultant and former AFL-CIO communications aide, said the White House is pursuing the correct approach at a perilous moment.
“No one wants a railroad strike, not the companies, not the workers, not the White House,” he said. “No one wants it this close to the election.”
Vale added that the sticking point in the talks was about “respect basically — sick leave and bereavement leave,” issues Biden has supported in speeches and with his policy proposals.
Jake Rosenfeld, a sociologist at Washington University in St. Louis, noted that the sticking points in the talks involve “more schedule predictability, and the ability to take time off to deal with routine medical procedures as well as emergencies.”
On a policy front, the administration generally supports these demands, and that lessens their “willingness to really play hardball with the unions who have yet to settle,” said Rosenfeld, who wrote the book “What Unions No Longer Do.”
Sensing political opportunity, Senate Republicans moved Wednesday to pass a law to impose contract terms on the unions and railroad companies to avoid a shutdown. Democrats, who control both chambers in Congress, blocked it.
“If a strike occurs and paralyzes food, fertilizer and energy shipments nationwide, it will be because Democrats blocked this bill,” said Senate Minority Leader Mitch McConnell, R-Ky.
The economic impact of a potential strike was not lost on members of the Business Roundtable, a Washington-based group that represents CEOs. It issued its quarterly outlook for the economy Wednesday.
“We’ve been experiencing a lot of headwinds from supply chain problems since the pandemic started and those problems would be geometrically magnified,” Josh Bolten, the group’s CEO, told reporters. “There are manufacturing plants around the country that likely have to shut down. ... There are critical products to keep our water clean.”
The roundtable also had a meeting of its board of directors Wednesday. But Bolten said Lance Fritz, chair of the board’s international committee and the CEO of Union Pacific railroad, would miss it “because he’s working hard trying to bring the strike to a resolution.”
Back at the Labor Department, negotiators ordered Italian food as talks dragged into Wednesday night.
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