House approves tentative labor deal to avoid rail strike, sends to Senate

A rail employee works a Union Pacific Intermodal Terminal rail yard on November 21, 2022 in Los Angeles, California.

Legislation that would force a rail labor agreement was passed by the House. The Senate has promised swift passage of the bill.

The House voted to add seven days of paid sick leave.

President Joe Biden called on Congress to intervene in the talks between railroads and some of the industry's major unions. The rail strike could cost the U.S. economy $2 billion per day and he met with the House and Senate leaders to try to avoid that.

A rail shutdown would be bad for the economy according to Biden.

The labor unions of railways had until December 9 to reach an agreement. Railroad workers have access to paid sick leave.

Legislation to enforce an agreement will not fix the problems or concerns of railroad workers, according to the Brotherhood of Maintenance of Way Employees.

The union called on Biden and any member of Congress who truly supports the working class to act quickly by passing any sort of reforms and regulations that will provide paid sick leave for all Railroad Workers.

According to the Association of American Railroads, a presidential board created to help resolve contract talksreviewed the union's request for additional paid sick days and instead offered additional salary.

"If the unions are interested in aholistic discussion for structural changes as it relates to their sick time, I think absolutely the railroad carriers would be up for aholistic discussion but they have not done it in the zero hour."

The National Railway Labor Conference states that each union has a different sick day policy. If an employee is sick, they need to be out of work for at least four and a half days before collecting their sick pay.

Railroad workers will get one additional personal day as a result of the tentative labor deal. 48 hours notice is required for a personal day.

The tentative agreement didn't go far enough, according to Sen.

Rail movement can be affected by strike threats.

Railroad carriers start preparing for a strike seven days before the strike date. The carriers prioritize the movement of hazardous and sensitive materials.

Chemicals are not transported before the strike date. During the week of September 10, railroads stopped accepting chemical shipments due to the threat of a rail strike.

If a labor agreement isn't reached, railroad carriers will not allow ammonia shipments on the rail in December.

It usually takes five to seven days for the supply chain to catch up. The production offertilizer would have to be stopped.

According to the National Grain and Feed Association, the major railroads move most of the agricultural freight traffic.

Mike Seyfert is the association's president and CEO. Right now, we have no elasticity. The low water levels have added to the challenge.

Brendan Branon, chair of the National Railway Labor Conference, told CNBC that Congress is weighing in on the future of collective bargaining. The Presidential Emergency Board was created in July to resolve the dispute between major freight rail carriers and unions.

pattern bargaining is the process used by trade unions and employers where demands and entitlements are made.

Branon said that pattern bargaining encourages settlement. This is the most appropriate form of settlement for complex negotiations, especially multi-employer, multi-craft agreements.

The railroads have developed a set of clear practices in bargaining and additional negotiations after the tentative agreement departs from the framework recommended by the PEB, according to Branon.

He said that abandoning a pattern would cause stress and risk for collective bargaining in the future for the railroad industry.