U.S. Transportation Secretary Pete Buttigieg was prominent last week as President Joe Biden lead the push for government intervention to avert a possible nationwide rail strike.
Millions of American "can breath a sigh of relief" following congressional approval of a deal to avert a possible rail strike, Buttigieg told CNN's Jake Tapper Dec. 1.
"Everything from baby formula to milk to petroleum products – the effect on the price of gasoline – to treatment materials for water, to all the other things we count on will continue moving," Buttigieg said, according to CNN. "And the workers, the essential workers who get them where they need to go, not only have an additional day of paid personal leave, per the agreement that was reach, but also a 24% pay increase."
The nation's freight rail network operates along almost 140,000 route miles and "is widely considered the largest, safest and most cost-efficient freight system in the world," according to the DOT website. The almost $80-billion freight rail industry runs along seven Class I railroads and annually earns $490 million or more in operating revenues. The nation's railways account for more than 167,000 jobs.
In the leadup to last week's possible strike crisis, eight of 12 railway unions representing more than 115,000 workers consented to new contracts giving employees a 14.1% wage increase and 24% wage growth by 2024, according to the Association of American Railroads.
The majority of Americans participating in a November poll reported anxiety ahead of a possible strike. The poll by Forbes Tate Partners, a bipartisan polling group, found 92% of participants believe it's important for the U.S. economy that freight rail keeps running and 85% believe freight rail interruption would lead to prices rising even higher.
A strike could cause interruptions in factory production, cause shortages, inflate prices and disrupt the commute for millions of railway riders, the DOT website reported. In addition, there would be a disruption in the essentials that serve public health, like clean drinking water. In 2019, rail networks accounted for approximately 28% of U.S. freight movement.
"I'm grateful to Speaker Pelosi and bipartisan House members for acting to prevent a rail shutdown, making clear it would devastate our economy and families everywhere," President Biden said Nov. 30 on Twitter. "But without more action, supply chain disruptions will begin. The Senate must urgently send a bill to my desk."
"There is no substitute in the U.S. for functioning freight rail, and if a shut down were to occur, that's not just shutting down our trains, it's really shutting down our economy," Buttigieg said Dec. 1 during MSNBC's Morning Joe.
