U.S. House backs bill averting national rail strike, imposing deal on unions

The measure passed by a vote of 290-137 and now heads to the Senate. If approved there, it will be quickly signed by President Joe Biden, who requested the action.

The U.S. House moved urgently to head off the looming nationwide rail strike on Wednesday, passing a bill that would bind companies and workers to a proposed settlement that was reached in September but rejected by some of the 12 unions involved.

The measure passed by a vote of 290-137 and now heads to the Senate. If approved there, it will be quickly signed by President Joe Biden, who requested the action.

Biden on Monday asked Congress to intervene and avert the rail stoppage that could strike a devastating blow to the nation’s fragile economy by disrupting the transportation of fuel, food and other critical goods. Business groups including the U.S. Chamber of Commerce and the American Farm Bureau Federation warned that halting rail service would cause a US$2 billion per day hit to the economy.

The bill would impose a compromise labour agreement brokered by the Biden administration that was ultimately voted down by four of the 12 unions representing more than 100,000 employees at large freight rail carriers. The unions have threatened to strike if an agreement can’t be reached before a Dec. 9 deadline.

Lawmakers from both parties expressed reservations about overriding the negotiations. And the intervention was particularly difficult for Democratic lawmakers who have traditionally sought to align themselves with the politically powerful labour unions that criticized Biden’s move to intervene in the contract dispute and block a strike.

House Speaker Nancy Pelosi responded to that concern by adding a second vote Wednesday that would add seven days of paid sick leave per year for rail workers covered under the agreement. However, it will take effect only if the Senate goes along and passes both measures.

The call for more paid sick leave was a major sticking point in the talks. The railroads say the unions have agreed in negotiations over the decades to forgo paid sick time in favor of higher wages and strong short-term disability benefits.

The head of the Association of American Railroads trade group said Tuesday that railroads would consider adding paid sick time in the future, but said that change should wait for a new round of negotiations instead of being added now, near the end of three years of contract talks.