Congress expected to impose contract on US railroad workers to avert strike

The US House speaker, Nancy Pelosi, has announced that her fellow members of Congress plan to vote this week on imposing a new contract for railroad workers to avert a looming labor strike.

Pelosi made the announcement late on Monday afternoon just after Joe Biden called on Congress to intervene to prevent a strike, a possibility if an agreement between the freight rail industry and unions is not made by 9 December.

The agreement that would be imposed if passed by both congressional chambers comes from negotiations that were made in September between the rail companies, several unions and the Biden administration. It would entail a 24% raise by 2024, $1,000 in annual bonuses and a cap on healthcare premiums.

The dozen rail unions, including those who voted in favor of the September deal, agreed to strike if just one union rejects any agreement and takes the dispute to the picket line. The rail industry has estimated a strike would cost the economy $2bn a day as key ground transportation for goods and passengers would be halted.

Congress has the ability to impose an agreement on to the rail workers to avert a strike, something Democrats have been holding off on doing to give more room for unions to negotiate with management.

The deadlock between management and the unions is mostly over paid sick leave. The union argues that workers should get at least six days of paid sick leave. They are currently expected to use vacation time if they call out sick and are penalized if they take time off without using vacation days. The agreement Congress is considering does not include a sick leave provision.