WH Preparing Supply-Chain Contingencies to Combat Looming Railway Strike

The White House will craft a number of supply chain-related contingency plans this week, in the event an impending national railway strike.

On Tuesday, White House press secretary Karine Jean-Pierre told reporters the administration has been working with shippers, truckers, and air freight workers "to see how they can step in and keep goods moving in case of this rail shutdown."

Jean-Pierre added: "The administration has also been working with relevant agencies to assess what supply chains and commodities are most likely to face severe disruptions and available authorities to keep goods moving."

According to media reports, the companies which operate railways for freight trains, and the unions supporting those railway workers, have reportedly established a Friday deadline to agree on a new labor contract.

In the absence of a tentative deal, industry insiders estimate a nationwide railroad strike could become a $2 billion per day drain on the U.S. economy.

On Monday, House Majority Leader Steny Hoyer, D-Md., told Bloomberg Television that Congress would act to avert the national railway strike.

"There is a role for Congress if in fact they fail to reach an agreement," Hoyer said on Bloomberg's "Balance of Power" show. "We can pass legislation, if needed."

With the midterm elections less than two months away (Nov. 8), the Democrat-controlled House and Senate chambers likely cannot afford any negative publicity associated with the nationwide railway strike.

The White House has already been inundated with logistical and inflationary concerns over the last 18 months — including pricing problems with American consumer staples, such as gasoline, diapers, baby formula, eggs, milk, and proteins at the grocery store.

"[The White House has] made crystal clear to the interested parties the harm that American families, businesses, and farmers and communities would experience if they were not to reach a resolution," said Jean-Pierre, while adding President Joe Biden has spoken to a number of railway union leaders.

According to reports, five of the 12 unions representing rail workers have reached in-principle agreements with railroads, as part of the Presidential Emergency Board recommendations, which call for 24% pay raises, back pay, and cash bonuses.

However, the five deals involve just a small percentage of workers who belong to the railway unions.

A national railway strike could also have a major financial effect on commercial train travel.

The Hill reports that Amtrak does not own the railways where its trains operate in certain parts of the country.

Instead, Amtrak operates on the rails owned by freight companies.

• Railroad Strike That Could Cost Economy $2B Per Day Imminent
• Railroads Back Plan Calling for 24% Raises but Workers Wary