WASHINGTON — An array of shipper groups has asked the Biden administration to head off a potential railroad strike.
Trade associations representing manufacturers, farmers, food and beverage producers, and retailers sent a letter to President Joe Biden on Thursday urging the White House to work with railroads and unions to ensure that tentative contract agreements are ratified.
“It is paramount that these contracts now be ratified, as a rail shutdown would have a significant impact on the U.S. economy and lead to further inflationary pressure,” the groups wrote. (The text of the letter is reproduced below.)
The letter was prompted by the rejection of tentative agreements by the membership of the unions representing signal maintainers and maintenance of way workers. This raised concerns that the two largest unions — the Brotherhood of Locomotive Engineers and Trainmen and the SMART-TD union that represents conductors — also would overwhelmingly turn down their tentative contracts on Nov. 21.
“If that were to be the case, we could witness a strike that would shut down the entire freight rail system,” the groups wrote. “Because the White House played such a central role in the process, we believe it can be helpful in continuing to move the process forward in a positive direction. Otherwise, Congress will be called upon to act.”
The American Chemistry Council noted that its members ship 33,000 carloads per week and would be hurt by a strike.
“The stakes are very high for the chemical industry since our members rely on freight rail and they will be one of the first industries impacted if the threat of a potential strike grows and forces railroads to scale back service,” says Scott Jensen, a spokesman for the chemistry association.
To prepare for a shutdown, railroads stop accepting security-sensitive shipments, including chemicals that are critical to safe drinking water and support industries that account for 4% of the U.S. Gross Domestic Product, including energy refining and the production of pharmaceuticals.
Chemical facilities would start curtailing production within days after the start of a rail shut down, while a shutdown lasting more than a week would force many chemical facilities to shut down completely.
The unions and railroads have agreed to negotiate after all 12 unions have voted on their tentative contracts. So far six have ratified their contracts, two have rejected them, and four have yet to announce vote tallies.
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