If unions and freight transport companies cannot reach a deal, a huge strike might begin on Friday. Amtrak, the American SNCF, has already announced that mainline trains would be canceled beginning this Thursday. Joe Biden's file is becoming more vexing by the day.
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| [A train in California, USA/Unsplash] |
In the United States, the train is dangerously close to derailing. On Wednesday, unions and freight carriers continued to negotiate in an effort to prevent a strike that would begin on Friday if an agreement could not be reached. "We are pleased by the progress achieved in establishing agreements in principle with nine of the twelve unions," observed the Texas-based BNSF on Wednesday about the freight companies Union Pacific and BNSF, both of which are owned by a company that is controlled by Warren Buffett. However, in order to prevent a strike or other forms of action, the organization that runs over 1,200 trains every day in the western and central parts of the nation reminds us that "each union must have an agreement."
Even before the time for negotiations had passed, those who used the rails started taking preventative steps, which caused a disruption in traffic. Amtrak, which is the equivalent of the French SNCF, made the announcement on Wednesday that it would be canceling long-distance trains on the portion of the network that is controlled by freight carriers. However, the disruption will not impact the company's busiest route, which connects Boston and Washington.
Additionally, freight companies have begun declining new cargoes, while others are searching for river alternatives; this has led to an increase in the cost of transporting goods. The price of gasoline has also been driven up due to the following factor: in normal times, dozens of trains that are each several kilometers long travel across the nation every day from the coal mines in Wyoming to feed the power plants throughout the country.
According to estimates provided by the Association of American Railroads, a shutdown could cost the economy of the United States around $2 billion per day. Even though wheat, maize, and soybeans are still being harvested, the big agrifood corporations are already concerned that they won't have enough raw materials to keep their facilities operating. It is possible that the ports of Los Angeles and New York may experience backlogs rather early if they are trapped during the COVID by bottlenecks.
Every day, the matter gets more pressing for Joe Biden: with eight weeks before the parliamentary elections, the Democratic upturn of the previous few weeks might turn against a president who has protected the authority of the unions since he first arrived in the White House. The president has given ex-unionist Marty Walsh, his Minister of Labor, the responsibility of presiding over the discussions, and the White House has established a Presidential Emergency Commission as of the summer of this year (PEB).
"While President Biden's PEB recommendations are significantly superior to the rail carrier's proposal, the railroads agreed that, in the interest of all involved stakeholders, we would support agreements based on these recommendations," BNSF says in a press release. "While the recommendations of President Biden's PEB are significantly superior to the rail carrier's proposal," BNSF says.
These provisions, in particular, guarantee for back pay and future wage increases up to the year 2024. The conversations, however, are running into roadblocks about the working conditions, and more specifically the number of days off that workers get. In the event that no deal is achieved by Thursday evening, an emergency door in Congress might be opened: the elected Democrats could opt to prolong the period of time during which negotiations can take place.