"Disaster Averted" Biden Signs Railroad Strike Prevention Act

[Image source=AP Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] U.S. President Joe Biden signed the forced bill on the provisional agreement between railroad labor and management passed by Congress on the 2nd (local time). As a result, the railroad union strike in the U.S., which was feared to cause a logistics crisis, was prevented.

According to the White House, President Biden said in his signing ceremony speech that "the railroad system is the backbone of our supply chain," adding, "It could have been a real disaster, but it turned out well. This bill ends the railroad dispute and prevents an economic disaster at a very bad time."

Following the passage of the bill by Congress and President Biden's signature, the railroad unions must comply with the provisional agreement. If they strike afterward, it will be considered illegal and may result in dismissal.

Earlier, the Biden administration prepared a provisional agreement in September to prevent a railroad strike, including a 24% wage increase over five years until 2024, and each union was to decide on ratification by vote. However, recently some unions rejected the provisional agreement, raising concerns that a railroad strike could materialize from December 9. In response, the U.S. Congress intervened to prevent the railroad strike. Congress has the constitutional authority to regulate interstate commerce and can enforce an agreement between labor and management in the event of a railroad strike.

President Biden praised Congress's intervention as "the right thing," emphasizing, "It saved jobs, protected millions of workers' families from risk and destruction, and stabilized the supply chain around the holidays." He also stated that regarding the 'mandatory 7-day paid sick leave' excluded in the Senate after passing the House, he will continue efforts for paid sick leave for workers.