Rail strike looms amid midterms, inflation: Biden team still has work to do
Despite the White House victory lap, some rail workers have rejected the deal
{{#rendered}} {{/rendered}}Inflation remains at record highs as the Fed moved again to raise interest rates. These economic realities – including a looming downturn – continue to color the fast-approaching midterm elections, with Republicans gaining steam to make significant gains in Congress.
If things go as predicted, the White House will own the loss and the recession.
Looming behind the scenes, however, is a potential rail strike that could bring the economy to its knees and accelerate the inflation the administration created and wants to stop. The White House would own this too.
{{#rendered}} {{/rendered}}President Biden speaks about infrastructure investments at the LA Metro, D Line Extension Transit Project - Section 3, in Los Angeles, Oct. 13, 2022. (AP Photo/Carolyn Kaster)
By way of background, the Biden administration took a victory lap after it helped broker an agreement between freight railroads and their labor unions to avert a strike. Workers must still vote on the deal, however, and it appears President Biden and his team may have celebrated too soon.
RAILROADS REJECT DEMANDS FROM HOLDOUT UNION, RAISING ODDS OF STRIKE
As covered on Fox News, the workers who maintain the physical infrastructure for freight railroads – maintenance of way workers – rejected the deal. Most recently, the Signalmen followed suit.
{{#rendered}} {{/rendered}}Despite stating publicly throughout the process that the maintenance workers’ top priority was increased travel reimbursement totals, and endorsing the deal sent out to members for a ratification vote, the leader of that union got cold feet period. He took to the airwaves citing the need for increased time off.
A CSX freight train runs through Homestead, Pennsylvania, on Sept. 14, 2022. (AP Photo/Gene J. Puskar)
This has been a major sticking point, with the mainstream media continuing to report that rail workers get no time off, even though the facts show they have generous time off and sick leave policies. This is the result of rounds of bargaining in which unions chose higher overall pay and more generous paid time off for extended absences, versus the short-term leave. It kicks in after four days and is paid.
Many workers would love such a perk.
{{#rendered}} {{/rendered}}Most U.S. workers would also enjoy the 24% wage increase the contracts bring, as well as $11,000 in immediate back pay. The average freight rail worker will soon make $110,000 a year in salary and a total compensation package of $160,000. The industry provides what is essentially a single payer health care system in which workers pay little to nothing into their system.
"The salary increases, improvements to health benefits and concessions on paid time off represent important wins for workers and serve as an example of how important strong union leadership is to its members," says one New York labor leader.
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{{#rendered}} {{/rendered}}And yet soon after victory was declared in the White House, there is a real possibility these deals may unravel. The reason is clear: labor union leaders refuse to take responsibility for the deals they themselves negotiated. They cravenly tell members to vote their conscience, and the White House has done little to hold them to account. These actions defy historical precedent and undermine the very premise of reaching an agreement.
The result today is that avowed socialist agitators, who recently called for the railroads to be seized and nationalized, continue to manipulate media coverage with their misleading spin. They ignore the facts of these generous agreements, claiming the deals are inadequate. This is despite the fact that union negotiators agreed to it. Six of 12 unions have already ratified deals. They ignore the intense involvement of President Biden. Why was the deal good enough for half the unions but may not be good for others?
Employees will continue to vote on the deals until mid-November – after the midterm elections. Workers can strike only if the deals are not approved. Estimates show that a rail strike would cost the U.S. economy $2 billion per day, a clear recipe for worsening inflation and mucking up supply chains that are finally beginning to unclog.
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The White House shouldn’t let it happen. Management has repeatedly made concessions, considerable ones. They surely will not make more – period.
It’s time for the White House to spring back into action with their union friends.
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