{"id":5188,"date":"2022-07-28T18:45:40","date_gmt":"2022-07-28T18:45:40","guid":{"rendered":"http:\/\/siships.com\/blog\/?p=5188"},"modified":"2022-07-28T18:45:40","modified_gmt":"2022-07-28T18:45:40","slug":"biden-uses-executive-power-to-delay-us-rail-strike","status":"publish","type":"post","link":"https:\/\/siships.com\/blog\/biden-uses-executive-power-to-delay-us-rail-strike\/","title":{"rendered":"Biden Uses Executive Power to Delay US Rail Strike"},"content":{"rendered":"

Possible US Rail Strike Averted by Creation of Presidential Emergency Board<\/h2>\n

Last week, President Biden created a Presidential Emergency Board<\/a><\/span>\u00a0via Executive Order to mediate ongoing labor disputes between railroads and railroad unions and prevent a US rail strike. This had been long expected to arrive before the drop date of July 18th, when a national strike would have taken effect.\u00a0<\/span><\/p>\n

\u201cI have been notified by the National Mediation Board that in its judgment these disputes threaten substantially to interrupt interstate commerce to a degree that would deprive a section of the country of essential transportation service,\u201d wrote President Biden. Combined with shipping delays<\/a><\/span> from Russia\u2019s war in Ukraine, rising inflation<\/a><\/span>, and international backlogs<\/a>,<\/span>\u00a0a US rail strike would have pushed the domestic supply chain to the brink.<\/span><\/p>\n

\"shippingReasons for Union Frustrations<\/h3>\n

The Brotherhood of Locomotive Engineers and Trainmen <\/a><\/span>(BLET) are just one of the 13 unions involved in the national labor contract negotiations. The members of BLET voted 99.5% in favor of the strike. The reasons cited <\/a><\/span>by the union range from lack of pay increases over the past three years to shrinking healthcare benefits and a blame on \u201cbad faith negotiations\u201d by the railroads themselves.\u00a0<\/span><\/p>\n

Despite the supply chain issues, railroads have maintained its status as the most profitable industry<\/a><\/span>\u00a0in the United States. Workers blast the \u201ccorporate greed\u201d of railways. \u201cThey just simply don\u2019t want to share their record profits with their employees,\u201d says Dennis R. Pierce, the national president of BLET. Unions are frustrated that a large portion of their workforce was furloughed due to the pandemic and have not been reinstated despite the fully restored cargo volume.<\/span><\/p>\n

Additionally, workers are concerned about the concept of Precision Schedule Railroading (PSR). While railroads explain that PSR allows them to operate more efficiently, workers say that it is costing them jobs. This is not dissimilar to contract negotiations dealing with automation<\/a><\/span>\u00a0in west coast ports.\u00a0<\/span><\/p>\n

Potential Impact of US Rail Strike<\/h3>\n

In short, a true strike would be absolutely catastrophic for the United States. Fortunately, the Railway Labor Act (RLA) has certain stopgaps in place to prevent such an event. Neither side of the negotiation table is keen on a strike occurring. President Biden was lauded by the Transportation Trades Department<\/a><\/span> (TTD), another union involved in negotiations, following his creation of the Presidential Emergency Board. \"shipping<\/span><\/p>\n

Most importantly, the RLA includes \u201ccooling off\u201d periods following strike votes that enable negotiations to continue before action is taken. A cooling off period occurred after the unions voted overwhelmingly to strike, which gave President Biden the opportunity to create the emergency board. The emergency board has 30 days to draft recommendations for both sides. This will be followed by an additional 30-day cooling off period. Now, the earliest potential for a strike is mid-September.\u00a0<\/span><\/p>\n

While this has certainly given everyone some breathing room, if a strike were to occur it would now take place in the run up to midterm elections and the holiday season.<\/span><\/p>\n

US Rail Strike Effect on Washington<\/h3>\n

This is not the first time in recent years that the president has had to intervene. President Obama was forced to act in 2011<\/a><\/span>. During that time, the BLET was the first to authorize a walk out, if necessary.<\/span><\/p>\n

While there is precedent, this new emergency board comes at a precipitous time politically for President Biden<\/a>. Famously a booster for rail travel, flexing his executives powers has the potential to backfire ahead of the midterm elections. Alternatively, if the strike cannot be avoided, the political ramifications for <\/span>President Biden<\/span><\/a> and democrats in general would be calamitous.<\/span><\/p>\n

Despite the frustrations <\/a><\/span>of many rail workers, there is hope that a unified front by all 13 unions with the assistance of the president will lead to a satisfactory outcome for all parties.\u00a0<\/span><\/p>\n

\n

How SiShips Gives You the Advantage<\/h4>\n

Sheltered International combines expertise with state of the art software to bring you the highest quality domestic and international shipping solutions. With the state of the world in constant flux, SiShips puts the shipper in control, offering efficient and cost effective ways to transport your product.\u00a0<\/span><\/p>\n

To learn more about managed transportation with SiShips, or to view a demo of our software, contact us<\/a><\/span>\u00a0today.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Possible US Rail Strike Averted by Creation of Presidential Emergency Board Last week, President Biden created a Presidential Emergency Board\u00a0via Executive Order to mediate ongoing labor disputes between railroads and […]<\/p>\n","protected":false},"author":186,"featured_media":5189,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"yoast_head":"\nBiden Uses Executive Power to Delay US Rail Strike - SiShips<\/title>\n<meta name=\"description\" content=\"Last week, President Biden created a Presidential Emergency Board via Executive Order to mediate ongoing labor disputes between railroads and railroad unions and prevent a US rail strike.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/siships.com\/blog\/biden-uses-executive-power-to-delay-us-rail-strike\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Biden Uses Executive Power to Delay US Rail Strike - 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