Biden signs emergency law forcing rail unions to accept wages deal

Biden signs emergency law forcing rail unions to accept wages deal

US President Joe Biden signs a resolution to avert a nationwide rail shutdown
US President Joe Biden signs a resolution to avert a nationwide rail shutdown. Photo: Brendan Smialowski / AFP
Source: AFP

US President Joe Biden signed into law Friday a rare intervention by Congress forcing freight rail unions to accept a salary deal, avoiding a possibly devastating strike -- but putting the pro-union Democrat in an awkward political position.

Biden signed the law in a brief White House ceremony only a week before unions who had rejected the deal were expected to have gone on strike, threatening crucial supply chains across the world's biggest economy.

The deal delivers a hefty wage increase but four of the 12 unions involved refused to accept because there was no agreement on giving workers paid sick leave. Congress acted under a little used power to resolve disputes involving railroads.

As he signed the bill, Biden said Congress had "avoided what, without a doubt, would have been an economic catastrophe."

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"Without freight rail, many of the US industries would literally have shut down," Biden said, adding that his advisors feared the loss of three quarters of a million jobs within two weeks if the strike had gone ahead.

The episode is awkward politically for Biden who frequently touts his pro-union credentials. He was due to meet with electrical union members later Friday in Boston.

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Source: AFP

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