Biden signs bill to prevent national rail shutdown

President Joe Biden this morning signed legislation to prevent a national rail strike and implement a tentative contract agreement between the nation's major freight railroads and their workers.

The U.S. Senate yesterday passed the legislation in an 80-15 vote. The Senate rejected an amendment to the bill that would have extended the "cooling-off period" that would have given four unions and railroads more time beyond a Dec. 8 deadline to continue negotiations. The Senate also rejected an amendment that called for adding seven days of paid sick leave for rail workers.

On Wednesday, the House passed the legislation to avert the rail strike, as well as a separate measure that called for paid sick leave. Paid sick leave was a key reason that members of four unions rejected ratification of the tentative agreement with the railroads. Members of eight other unions voted to ratify the agreements.

In a press conference yesterday, Biden said he would continue to address paid sick leave as a national issue.

Had Congress not acted on the rail-strike legislation, any one of the four unions could have called a strike after Dec. 8, which would have resulted in all 12 unions walking off the job.

"This legislation will implement tentative agreements for the four unions that had not previously ratified their agreements. We are pleased that the railroads and rail employees will be able to continue providing uninterrupted service to customers, communities and the public throughout the holiday season and beyond," National Carriers' Conference Committee officials said in a prepared statement. The committee represents the nation's freight railroads in collective bargaining.

The more than 100,000 employees in the bargaining round will now be covered by new collective bargaining agreements based on the recommendations of Presidential Emergency Board No. 250, which includes a 24% wage increase.

“The Senate acted with leadership and urgency with [yesterday's] vote to avert an economically devastating rail-work stoppage,” said Association of American Railroads President and CEO Ian Jefferies in a press release. “As we close out this long, challenging process, none of the parties achieved everything they advocated for."

Congress acted swiftly after Biden earlier this week asked lawmakers to pass legislation to stop a national freight-rail shutdown.

"I want to thank Congressional leadership who supported the bill and the the overwhelming majority of Senators and Representatives in both parties who voted to avert a rail shutdown," Biden said in a prepared statement. "Congress’ decisive action ensures that we will avoid the impending, devastating economic consequences for workers, families and communities across the country."