Biden Maneuvers to Try to Avoid Devastating Rail Strike

American railways are responsible for transporting much of the chemicals, automobiles, metals, grain and oil that moves around the continent, in addition to shipping containers full of shoes, shampoo and furniture.

Any stoppages would set off a rush among farmers and retailers to secure trucks to move their goods, most likely pushing up spot prices in the trucking industry and adding to cost inflation for industries that rely on trucking, said Priyesh Ranjan, the chief executive of Vorto, a supply chain platform.

A rail strike could also worsen congestion at East Coast ports, as companies try to move their goods closer to consumers by ship, and on the West Coast, said Judah Levine, head of research at Freightos, an international freight platform.

Another complication also looms: Dockworkers and terminal operators at West Coast ports have been locked in their own extended negotiations over a contract that expired in May. While both sides have committed to continue moving goods while they negotiate, the possibility of a work stoppage or slowdown that cripples trade remains.

Because the rail industry is central to the economy, Congress and the administration have special authority to intervene in its labor disputes. Under the Railway Labor Act, the president can appoint an emergency board to make recommendations to solve labor disputes.

President Biden convened that board in mid-July, and it issued a report on Aug. 16, starting a 30-day period in which strikes, slowdowns and lockouts are forbidden.

Article source: https://www.nytimes.com/2022/09/14/us/politics/rail-strike-biden.html