why is congress involved in the rail strike

The senate on Thursday passed a bill to make the rail strike illegal, which the President . Profit margins jumped, but service sputtered when the networks hit snags, such as bad weather or a derailment. 1998 - 2023 Nexstar Media Inc. | All Rights Reserved. "Getting goods from warehouses to homes is done by truck," Zandi said. Workers also say their jobs have become significantly more demanding because the railroads have eliminated nearly one-third of their jobs over the past six years as they overhauled their operations. Basically, at that time it was widely recognized that the railroads were so essential to the nations life that strikes could not be countenanced. If lawmakers impose the Presidential Emergency Boards plan with no changes and President Joe Biden signs the bill, the railroads can claim victory. McCarthy said outside the White House that thought legislation would pass. Whatever the outcome, a labor deal will get done negotiated or imposed because it would be a disaster for the economy if Congress were to allow a strike or lockout to bring the supply chain to a screeching halt. Thats why business groups in particular were urging Biden and Congress to act this week. In 1959, in San Diego Building Trades Council vs. Garmon, the Supreme Court ruled that state court proceedings should be paused to allow the National Labor Relations Board to determine whether the unions conduct was, or was arguably, protected or prohibited by the National Labor Relations Act. This includes paying for federal employees, the . The main channel for a strike to boost inflation is through the higher cost of transportation, particularly for agriculture, Zandi said. Like Biden, she said, "We are reluctant to bypass the standard ratification process for the Tentative Agreement -- but we must act to prevent a catastrophic nationwide rail strike, which would grind our economy to a halt.". But by calling for Congress to impose a solution, Democrats are in essence riding roughshod over the wishes of those unions that have voted to reject the deal. While dissatisfied with that deal, they also face potentially greater risks if negotiations were to extend without resolution into January, when the House comes under Republican control. Congress, acting with authority from the Constitution's commerce clause, has not voted to end a railroad strike since April 1991 -- less than 24 hours after a walkout. Its not an easy call, but I think we have to do it. After the SMART Transportation Division, or SMART-TD, the nation's largest rail union, rejected the contract in a record turnout vote last week, the group's president urged further negotiations. Unfortunately, the justices give no answer to that question and that uncertainty in itself will chill unions from exercising their federally protected right to strike. Some of the rail employees rejected a tentative deal, citing working conditions. A national rail strike could kick in just a couple of weeks before Christmas, with potentially disastrous effects for the economy and inflation. Now that the court has opened the door to holding unions liable for the economic consequences of their strikes, the question will be where the line will be drawn. As Justice Ketanji Brown Jackson said in her dissent this week, the threat of economic harm posed by the right to strike is a feature, not a bug, of the NLRA. The threat of economic loss to employers and to striking workers is what causes the parties to negotiate a settlement. But all the unions that rejected their deals have been pushing to add sick time on top of the September deals. newsletter for analysis you wont find anywhereelse. Corn, wheat and soybeans are the primary agriculture commodities that use rail. However, it may not prove as simple as that. "A national rail strike would severely impact the economy and the public," the NCCC said last week. Zandi said that the American Trucking Association estimates that a rail work stoppage would require 500,000 more trucks and 80,000 more drivers to fill the gap -- an untenable number. At President Joe Biden's. McCarthy said outside the White House that thought legislation would pass. Eight other unions have approved their five-year deals with the railroads and are in the process of getting back pay for their workers for the 24% raises that are retroactive to 2020. Pelosi for her part said that while she did not like going against the ability of unions to strike, she felt compelled to do so because in the event of such a stoppage jobs will be lost. "Getting goods from warehouses to homes is done by truck," Zandi said. The specter of a strike had loomed in September but had seemed to be resolved by a tentative deal between railroad companies and labor unions. But some Amtrak trains and commuterrailsthat run along the Northeast Corridor wouldn't be affected by this. It would also infuriate millions of Americans whose desire to get the goods they want during the holiday season would almost certainly be thwarted. Unions have little recourse if Congress moves forward in imposing the terms of the September deal. Congress can step in to resolve disputes between labor unions and railroads under the 1926 Railway Labor Act, as part of its power under the Constitution to regulate commerce. It included significant pay raises 24 percent from 2020 levels to 2024 levels. Russian forces blow up a dam, in the latest apparent use of flooding as a tactic of war. It's not an easy call, but I think we have to do it. Biden was one of only six senators to vote against that legislation, citing unfavorable terms for workers. If Congress were to intervene and adopt the boards plan, which doesnt address the work-rule issues, the labor shortageand low employee morale will most likely continue. The last time Congress ended a rail strike was in 1992, sending the case to arbitration. But in this case -- where the economic impact of a shutdown would hurt millions of other working people and families -- I believe Congress must use its powers to adopt this deal," he said. A strike would affect not only commuters who rely on the railway to get to work but also the nation's energy supply . Why it matters: Without a new labor contract in place between railroads and unions, a rail strike could take effect as soon as Dec. 9, with effects felt days earlier. The RLA was passed into law almost 100 years ago, in 1926. Outgoing Speaker Nancy Pelosi said in a statement Monday night that the House will soon take up such legislation and won't modify the agreed-upon terms from September. Moody's Analytics chief economist, Mark Zandi, said that a railroad strike would be "economically costly," and that a freight shutdown wouldroil supply chains and put upward pressure on U.S. goods inflation, making price problems temporarily worse. This material may not be published, broadcast, rewritten, or redistributed. Why Congress is involved in potential rail strike All labor disputes in the railway and airline industries -- which are seen as critical to the U.S. economy, stretching across major industries from energy to agriculture -- are governed by a 1920s-era federal law known as the Railway Labor Act, or RLA. If Congress acts in this go-around, it will end talks between the railroads and four rail unions that rejected the deal Biden helped broker before the original strike deadline in September. "It's unfortunate that this is how we're running our economy today," he said. Thomas Black is a Bloomberg Opinion columnist covering logistics and manufacturing. Like Biden, she said, "We are reluctant to bypass the standard ratification process for the Tentative Agreement -- but we must act to prevent a catastrophic nationwide rail strike, which would grind our economy to a halt.". It is wrong for the Biden administration, which has failed to fight for workers, to ask Congress to impose a deal the workers themselves have rejected.. There should be little doubt that the White House deems the US freight railroads as too important to fail, and the Railway Labor Act gives Congress the power to resolve the conflict unlike other disputes with unionized employees, such as dockworkers. The two largest unions, with votes due on Nov. 21, secured additional personal days on top of the base framework. "Tomorrow morning, we will have a bill on the floor," she said outside the White House after meeting with Biden and the other top four congressional leaders: Democratic Sen. Chuck Schumer, Republican Sen. Mitch McConnell and Republican Rep. Kevin McCarthy. More stories like this are available on bloomberg.com/opinion, The basics for making smart money decisions, Congress Wont Let a Rail Dispute Cripple the US, 9 money-smart books that make the perfect graduation gifts. All Rights Reserved. In addition, as the nonpartisan Congressional Research Service recently noted: Article I, Section 8, clause 3 of the U.S. Constitution states that the Congress shall have power [t]o regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes., The Congressional Research Service added that, In 1917, the Supreme Court confirmed that Congress has the authority to intervene in rail labor disputes that threaten to disrupt interstate commerce.. Nine other unions that represent workers at rail yards, mechanic shops and other areas have reached accords based on the boards plan of a 24% pay increase over five years and a $5,000 bonus. Under the RLA, if the parties in the rail labor dispute do not reach agreement on a new contract, the railroads can either impose their own work rules or employees can strike -- or both. President Joe Biden, center, at the top of a meeting with congressional leaders to discuss legislative priorities for the rest of the year, Tuesday, Nov. 29, 2020, in the Roosevelt Room of the White House in Washington. The bill: The legislation, which was passed on a strong bipartisan basis, included a range of provisions that were part of a tentative agreement the Biden administration helped negotiate between the unions and railroads in September. Seven of the twelve have already agreed to terms, while 3 unions have rejected the proposed contracts. "This can all be settled through negotiations and without a strike. Surprisingly, the impasse isnt over wage increases. It became a nightmare, he says, 50 years after a classmates slaying, three amateur sleuths set out to find her killer, Editorial: Climate change is making California more expensive. Wicker said while no one side was fully happy with the compromise contract deal, "the responsible thing to do is avoid the strike.. The truth is that the rail strike is being provoked by railroad managements that have absolutely refused to give in on a central goal of the rail unions: the provision of paid sick leave. Sen. Bernie Sanders, I-Vt., and some progressive Democrats in the House are criticizing the compromise agreement as falling short, but Biden has urged swift passage without any modifications or delay.. Consumers, domestic industries, and our economy cannot weather a rail strike during the holiday season. Work rules for engineers and conductors, the two largest groups of rail workers that havent reached an agreement with management, are the main sticking point. He asked Congress to quickly pass legislation to adopt the tentative deal between the rail companies and employees that was reached in September and brokered by the White House. With Thursdays ruling, the justices have done the opposite, and workers will pay the price. Neither he nor Pelosi answered questions or said whether they thought they had the votes to pass the legislation. "Some in Congress want to modify the deal to either improve it for labor or for management. Heres a novel thought: Management and employees could work more as partners instead of adversaries to improve rail performance. It shouldnt be tolerated. Also pictured is House Speaker Nancy Pelosi of Calif., right. 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