Potential Rail Strike Could Stump Supply Chain – Biden Administration Urged to Step In

Talk of a nationwide rail strike has been in the news for some time now but the reality of it is coming sooner than we think. A coalition of 322 business groups and organizations ranging from farmworkers to retail industry have come together pleading for Biden and his administration to intervene once again to avert the potential strike. A strike can begin as early as November 19 if parties do not come to a fair agreement.

In early September the Brotherhood of Maintenance of Way Employes Division (BMWED) rejected a proposed labor contract. The contract consisted of 24% wage increase along with $5,000 in bonuses. But now, quality of life and paid sick leave are a major part of the negotiation. Workers argue that the quality of life brought on by these jobs is not justified with the benefits provided.

Written in the letter sent to Biden, the group states, “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.” Over 27.9% of cargo is moved by rail. With other factors still dwelling on the supply chain limiting movement such as the drought in the Mississippi, a halt of rail movement will cause immediate damage for the industry and trifle the rest of the economy.

Tension in the industry is growing this as negotiations are still being sorted and no agreement seems to be in reach