Nov 26, 2022

Congressman: Congress might have to intervene to prevent rail strike

Posted Nov 26, 2022 9:00 PM

By BRENT MARTIN
St. Joseph Post

ST. JOSEPH, Mo. — A disruption in the supply chain has already had negative ripple effects through the economy.

It could get worse.

A possible rail strike looms after another railroad union rejected an agreement brokered by the Biden administration.

Northern Missouri Congressman Sam Graves, the ranking Republican on the House Transportation and Infrastructure Committee, says there is a very good chance Congress will have to intervene to prevent a rail strike that could cripple the economy.

“It does worry me with Christmas coming on and what we’re seeing,” Graves tells KFEQ/St. Joseph Post. “We are still under Speaker Pelosi, her leadership, up until January 3rd and she’s going to have to make a decision.”

The possibility of a rail strike grew earlier this week when one of the biggest rail unions rejected the compromise, joining three other unions that contend rail freight companies haven’t agreed to ease demanding schedules and offer paid sick time.

Unions could call for a strike as early as December 9th.

Congress has stepped in before. A strike in 1992 lasted all of two days before Congress imposed a contract. A 1926 law governing rail negotiations makes it very difficult for rail workers to go on strike.

Railroads haul about 40% of the nation's freight each year. Railroads estimate a strike would cost the national economy $2 billion a day. Trucking would not be able to pick up the slack if railroads shut down.

Graves says the timing couldn’t be much worse with the Christmas shopping season underway. Graves says Congress might be forced to intervene.

“It would be nice if they could come to an agreement, but if they won’t, then Congress needs to intervene, because it could cripple the country,” Graves says.

Also, a freight rail shutdown would nearly bring passenger rail to a halt. Around half of all commuter trains run over tracks owned by freight railroads. Nearly all long-distance Amtrak routes run over freight tracks.

Nationally, retailers appear set for this Christmas, but that doesn’t mean they don’t have concerns about a possible rail strike.

“We don’t see, you know, canceling Christmas and that kind of narrative,” Jess Dankert, the vice president for supply chain at the Retail Industry Leaders Association, Dankert said. “But I think we will see the generalized disruption of really anything that moves by rail.”

David Garfield, a managing director with the consulting firm AlixPartners, said a rail strike could still impact holiday items shipped to stores later in December, and would definitely hamper stocking of next season’s goods.

Retailers are also concerned about online orders. Shippers like FedEx and UPS use rail cars that hold roughly 2,000 packages in each car.

Associated Press Writers David Pitt in Des Moines, Iowa, and Dee-Ann Durbin in Detroit contributed to this report.