Biden Administration Makes Contingency Plans for Rail Shutdown
WASHINGTON/LOS ANGELES—President Joe Biden’s administration on Tuesday made contingency plans aiming to ensure deliveries of critical goods in the event of a shutdown of the U.S. rail system while pressing railroads and unions to reach a deal to avoid a work stoppage affecting freight and passenger service.
The potential shutdown, which could come as early as Friday, could freeze almost 30 percent of U.S. cargo shipments, stoke inflation, impede supplies of food and fuel, cost the U.S. economy about $2 billion per day and cause transportation woes.
Railroads including Union Pacific, Berkshire Hathaway’s BNSF, CSX, and Norfolk Southern have until a minute after midnight on Friday to reach tentative deals with three hold-out unions representing about 60,000 workers.
A BNSF engine pull Metra commuter train cars at the Metra/BNSF railroad yard outside of downtown in Chicago on Sept. 13, 2022. (Scott Olson/Getty Images)
If agreements are not reached, there could be union strikes or employer lockouts. But the railroads and unions also could agree to stay at the bargaining table or the Democratic-led Congress could intervene by extending talks or establishing settlement terms.
The Biden administration’s push comes as food, energy, automotive, and retail groups implore Congress to intervene, saying a rail shutdown could threaten everything from global grain supplies to shipments of goods related to Christmas holiday shopping.
White House Press Secretary Karine Jean-Pierre said the administration is asking truckers and air shippers to assist should rail service cease and also is considering invoking emergency authorities. Jean-Pierre added that the administration is hosting daily interagency meetings to assess which supply chains and commodities are at highest risk.
Railroads on Monday stopped accepting shipments for hazardous materials such as chlorine and chemicals used in fertilizer so they are not stranded in unsafe locations if rail traffic stops.
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