Joe Biden signs legislation preventing rail strike over paid sick leaves for workers

United States President Joe Biden officially signed the legislation to block a national railroad strike which threatened the American economy. The legislation, which concerned a dozen unions comprising of 115,000 workers, was passed in the Senate with 80 votes in favour and will stop them from going on a strike – a measure that will be saving millions for the authorities.

However, the legislation concerning paid sick days for the workers was not approved.

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"It was tough for me but it was the right thing to do at the moment -- save jobs, to protect millions of working families from harm and disruption and to keep supply chains stable around the holidays," Biden said as he regarded the proposed strike as "an economic catastrophe."

The railroad companies have cut down on labour and other costs in order to maximise profits and some of them have also reduced sick leaves. While a majority of unions agreed with the deal, four of them criticised the companies as well as the government for imposing the measures.

According to CNN, the strike would have disrupted the supply chain and hampered around 30 per cent of all shipments. Estimates put the amount of loss to somewhere around $2 billion a day.

While private unions can go on strike, the government has a say on it when it concerns transportation. As a result, the deal signed by Biden will have to be accepted by all parties involved.

American Association of Railroads CEO Ian Jefferies said "none of the parties achieved everything they advocated for" but pledged to address the employees’ “work-life balance concerns."