"I am calling on Congress to pass legislation immediately to adopt the Tentative Agreement between railroad workers and operators - without any modifications or delay - to avert a potentially crippling national rail shutdown," Biden said on Monday.
The deal provides a 24% pay raise for rail workers in addition to improved health care benefits and the ability of operating craft workers to take unscheduled leave for medical needs, Biden said.
“As a proud pro-labor president, I am reluctant to override the ratification procedures and the views of those who voted against the agreement,” Biden added. “But in this case - where the economic impact of a shutdown would hurt millions of other working people and families - I believe Congress must use its powers to adopt this deal.”
Biden's remarks came shortly after the US Chamber of Commerce dispatched a letter on Monday to Republican and Democratic congressional leaders, calling on officials to do what they could to prevent a rail strike.
Both congressional lawmakers and the White House earlier called on unions and rail companies to remedy the standoff, underscoring the devastating effects that such a rail strike would have on the US economy.
Although the Biden administration had aided the construction of a tentative deal between parties in September, the agreement was later rejected by four of the 12 major rail unions. The issue at hand amid ongoing talks is the matter of paid personal leave, of which employees lacked in their previous collective bargaining deal.
The Association of American Railroads (AAR), in response to Biden's call for congressional action, said time is limited to bring national bargaining on this matter to a conclusion before the strike deadline expires.
A nationwide rail strike could cost the US economy $2 billion per day, and it may potentially begin as early as December 9, the AAR said.
"No one benefits from a rail work stoppage – not our customers, not rail employees and not the American economy," AAR President and CEO Ian Jefferies said in a release. "Now is the appropriate time for Congress to pass legislation to implement the agreements already ratified by eight of the twelve [rail] unions. A clear pattern of ratified agreements has been established and Congressional action to prevent a work stoppage in this manner is appropriate."
These agreements between rail workers and operations will ultimately boost average employee compensation and benefits to more than $160,000, Jefferies said.
The AAR noted that eight of the 12 labor unions plus a portion of one of the largest US rail unions, SMART-TD, have now fully agreed to contracts forged in part by the leadership of the Biden administration. These deals provide employees with a 24% wage increase over the five-year period from 2020 to 2024 and preserve employees’ healthcare coverage, the AAR added.