business-groups-anticipate-product-shortages-and-price-increases-in-the-us-due-to-the-threat-of-a-general-strike-in-the-railway-industry-due-to-a-blockade-with-unions

More than 300 business groups alerted the leaders of the United States Congress that a rail strike starting next week could cause economic chaos that it would add to the prolonged effects of inflation.

In a letter headed by the Chamber of Commerce and addressed to the main legislators in Washington DC as the Democratic chamber speaker, Nancy Pelosi; the second in command in that body, Kevin McCarthy; the main Democratic leader in the Senate, Chuck Schumer; and that of the minority in the same organization, Mitch McConnell, the subscribers requested congressional action to avoid a greater debacle.

“Nobody wins when the railways stop working,” the organizations state in the letter of this Monday that cite media such as CNN.

Among the

business groups include the Aluminum Association, Beer Institute, US Apple Association and Window & Door Manufacturers Association.

In the opinion of the applicants , the matter is of serious urgency, since even a short-term work stoppage could cause major effects. Although the expectation is that the parties (unions and freight railroads) reach a voluntary agreement, the entities warned Congress that they must prepare for the worst.

“In the absence of a voluntary agreement, we We ask you to take immediate steps to prevent a national rail strike and the economic destruction it would cause,” they state in the letter.

Since

, Congress has intervened in 300 occasions in labor negotiations when interstate commerce is threatened.

The authorities in the federal capital have the power to impose a contract on both parties or extend the period of reflection in the negotiation.

This would prevent interruptions in transport under the Railway Labor Law of the referred year.

The main claim of the workers is related to the rules of days off.

If the above is not resolved soon, by December 5 the effects of the roadblock could begin to be felt; while for 9, workers could paralyze their work at a general level. The situation would translate into a shortage of supplies, an increase in prices and a pause in factory production.

Additionally, it would affect rail transport services for more than seven million passengers a day, and the transfer of about 6,300 shipments of food and agricultural products, among others, per day.

This Tuesday, President Joe Biden echoed the call of the merchant groups.

In a meeting at the White House with the Democratic and Republican leaders of Congress, Biden indicated that the strike could “endanger” the United States economy. “There is a lot to do, including resolving the rail strike. Congress must act. It won’t be easy, but I think we have to do it. The economy could be in danger,” said the president surrounded by legislative leaders.

This is not the first time that Biden has intervened this year in negotiations between the railway industry and the unions.

With the help of the federal government, the two parties reached a tentative agreement in September establishing a wage increase of 400 % for workers, as well as provisions to go to medical appointments and respond to family emergencies without being penalized.

The workers of eight unions in the railway sector voted in favor of this agreement, but four others did not. The latter threatened to call a strike as of December 9.

Biden’s proposal is for Congress to approve a law to impose the tentative agreement that was reached in September.

Pelosi already announced last night in a statement last night that she will submit to a vote in that chamber a bill for those purposes.

By Scribe