The Senate voted quickly on Thursday to approve a labor agreement that averts a major railway work stoppage in the midst of the holiday season and fears of more inflation. The bipartisan measure was approved by a 80-15 vote.
President Joe Biden is expected to sign the deal just days after urging Congress to push for an arrangement that treats rail workers fairly while getting them back on the job.
The House voted 290-137 on Wednesday to pass the agreement, which requires railway companies and workers to hold to an agreement crafted in the fall with Biden’s involvement.
That measure included a 24% increase in wages over five years – the largest in more than 40 years – and $5,000 in bonuses spread out in annual payments. It included one more paid day off and greater scheduling flexibility. Employees would be expected to pay a larger portion of health insurance costs with some limitations on premiums.
Dec. 9 was the deadline for the work stoppage.
Rail unions were not in favor of the September deal for its lack of paid leave time.
Industries around the country – including the grain and livestock industries – heavily urged more involvement from leaders in Washington to resolve any delay in shipping during the critical holiday season. Rail companies deliver 40% of the country’s freight, including grain, food, chemicals, fertilizer, machinery, fuel and store supplies.
“On behalf of America’s cattle producers, we thank President Biden and [USDA] Secretary [Tom] Vilsack for their action to prevent a disruption in critical rail service across the country. We are also pleased to see bipartisan leaders in Congress working together to address this issue and protect our supply chains,” said National Cattlemen's Beef Association (NCBA) CEO Colin Woodall in a press release. “We urge Congress to quickly pass the tentative agreement, which enforces the Presidential Emergency Board’s recommendations from September and ensures reliable rail service moving forward.”
The votes by Congress marked the first time since the 1990s that the legislative branch used its constitutional authority to intervene in a labor matter involving interstate commerce.
Two different measures in the Senate, one carried by Democrats to add more paid leave for workers, and another from Republicans, pushing the Dec. 9 work deadline back 60 days for more negotiations, failed to gain a 60-vote supermajority.
Biden’s political career has been heavily based on union support since his arrival to the Senate in 1972. Democrats feared passage of the measure in both chambers could erode that labor union support. With involvement from U.S. Labor Secretary Martin L. Walsh and Transportation Secretary Pete Buttigieg, enough votes were found to avoid the rail shutdown.
“While this position is undesirable, Congress must act,” Republican Sens. Cynthia Lummis of Wyoming and Kevin Cramer of North Dakota, said in a joint letter. “Implementing an agreement that roughly half of the unionized workers support, along with all their leadership, is the most responsible path forward.”
