US House approves bill to avert rail strike that could cost economy $2bn per day

The US House of Representatives on Wednesday (November 30) approved a bill to block a potentially crippling railroad strike. The bill also has provisions for mandatory paid sick leave for rail workers. The bill was approved with 290 votes for and 137 votes against. The House separately voted 221 to 207, to give seven days of paid sick leave to railroad employees.

But it faces an uncertain fate in the Senate. Democrats and some Republicans have expressed outrage over the lack of paid short-term sick leave for railroad workers. It was feared that a rail strike could begin as early as December 9.

If a rail strike indeed takes place, it would freeze almost 30 per cent of US cargo shipments by weight. It may also increase the already high inflation. It will cost the economy $2 billion per day.

After the vote, President Joe Biden called on the Senate to act "urgently."

Railroads and the US Chamber of Commerce oppose amending the contract deal that was struck in September largely on the recommendations of an emergency board appointed by Biden.

The influential business lobby group said the sick leave, if passed and signed into law, "would impose an unworkable, one-sided modification to a labor agreement."

Biden on Monday (November 28) praised the proposed contract that includes a 24% compounded pay increase over five years and five annual $1,000 lump-sum payments, and had asked Congress to impose the agreement without any modifications.

There are no paid short-term sick days under the tentative deal after unions asked for 15 and railroads settled on one personal day.

Association of American Railroads Chief Executive Ian Jefferies said House action on sick leave could undermine future collective bargaining and argued the unions have historically bargained for higher overall wages and a more generous long-term leave policy.

Eight of 12 unions have ratified the deal. But some labor leaders have criticized Biden for asking Congress to impose a contract that workers in four unions have rejected over its lack of paid sick leave.

(With inputs from agencies)

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