House votes to avert rail stoppage

Bill imposes labor deal on unions

WASHINGTON — The U.S. House moved urgently to head off the looming nationwide rail strike on Wednesday, passing a bill that would bind companies and workers to a proposed settlement that was reached in September but rejected by some of the 12 unions involved.

The measure passed by a vote of 290-137 and now heads to the Senate. If approved there, it will be quickly signed by President Joe Biden, who requested the action.

Mr. Biden on Monday asked Congress to intervene and avert the rail stoppage that could strike a devastating blow to the nation’s fragile economy by disrupting the transportation of fuel, food and other critical goods. Business groups including the U.S. Chamber of Commerce and the American Farm Bureau Federation warned that halting rail service would cause a $2 billion per day hit to the economy.

The bill would impose a compromise labor agreement brokered by the Biden administration that was ultimately voted down by four of the 12 unions representing more than 100,000 employees at large freight rail carriers. The unions have threatened to strike if an agreement can’t be reached before a Dec. 9 deadline.

Lawmakers from both parties expressed reservations about overriding the negotiations. And the intervention was particularly difficult for Democratic lawmakers who have traditionally sought to align themselves with the politically powerful labor unions that criticized Mr. Biden’s move to intervene in the contract dispute and block a strike.

House Speaker Nancy Pelosi responded to that concern by adding a second vote Wednesday that would add seven days of paid sick leave per year for rail workers covered under the agreement. However, it will take effect only if the Senate goes along and passes both measures.

The call for more paid sick leave was a major sticking point in the talks. The railroads say the unions have agreed in negotiations over the decades to forgo paid sick time in favor of higher wages and strong short-term disability benefits.

The unions maintain that railroads can easily afford to add paid sick time at a time when they are recording record profits. Several of the big railroads involved in these contract talks reported more than $1 billion profit in the third quarter.

“Quite frankly, the fact that paid leave is not part of the final agreement between railroads and labor is, in my opinion, obscene,“said Rep. Jim McGovern, D-Mass.

Republicans also voiced support for the measure to block the strike, but criticized the Biden administration for turning to Congress to “step in to fix the mess.”

“They’ve retreated in failure and they kicked this problem to Congress for us to decide,” said Rep. Sam Graves, R-Mo.

The compromise agreement that was supported by the railroads and a majority of the unions provides for 24% raises and $5,000 in bonuses retroactive to 2020 along with one additional paid leave day. The raises would be the biggest rail workers have received in more than four decades.

Workers would have to pay a larger share of their health insurance costs, but their premiums would be capped at 15% of the total cost of the insurance plan. The agreement did not resolve workers’ concerns about schedules that make it hard to take a day off and the lack of more paid sick time.

The Biden administration issued a statement in support of Congress passing the bill that implements the most recent tentative agreement, stressing that it would provide improved health care benefits and a historic pay raise.

But the statement was silent on the measure that would add seven sick days to the agreement.