- Freight unions and railroads face Friday deadline to reach pay deal
- Rail companies have already begun launching their shutdown plans
- On Monday, the US Chamber of Commerce warned of an ‘economic disaster’
- Officials fear more supply chain disruption, forcing inflation higher
- Biden has been briefed on the state of talks as officials scramble to avert strike
- Estimates suggest industrial action will wipe $2 billion a day from the economy
The Biden administration is scrambling to head off freight rail strikes at the end of the week that could cost as much as $2 billion per day, further choking supply chains and causing what the U.S. Chamber of Commerce warned would be an ‘economic disaster.’
Labor Secretary Marty Walsh has canceled travel plans and the White House is holding crisis meetings.
Unions and railroads have until Friday to agree contracts for tens of thousands of workers.
Failure could trigger strikes and employer lockouts.
People familiar with the matter told the Washington Post that Biden administration officials have begun preparations for a potential shutdown and are warning of damage to the economy just before crucial midterm elections.
Joe Biden is being kept abreast of progress, which included meetings led by the White House National Economic Council
The Labor Department announced that Walsh had postponed travel to Ireland so that he could remain involved in talks.
‘The parties continue to negotiate, and last night Secretary Walsh again engaged to push the parties to reach a resolution that averts any shutdown of our rail system,’ a Labor Department spokesperson said.
‘All parties need to stay at the table, bargain in good faith to resolve outstanding issues, and come to an agreement.’
The scramble demonstrated the stakes involved, as the country continues to build back from the coronavirus pandemic and supply chain shocks.
Biden has already set up an emergency mediation board to head off a crisis that critics say has been years in the making.
Widespread disruptions could choke supplies of food and fuel, stoking inflation, and costing $2 billion per day in lost economic output, according to the Association of American Railroads.
The U.S. Chamber of Commerce wrote to Congress on Monday demanding action.
‘A national rail strike would be an economic disaster – freezing the flow of goods, emptying shelves, shuttering workplaces, and raising prices for families and businesses alike, but that is exactly what is likely to happen in less than four days,’ said Suzanne Clark, its head of the U.S. Chamber of Commerce.
