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Biden Intervening on Rail Contracts

Bottom Line: Biden’s special board is intervening to finalize contract negotiates between workers and major freight railroads to avoid labor strike.

A special board appointed by President Joe Biden is intervening in the ongoing labor dispute among workers and major freight railroads like Union Pacific, BNSF, Norfolk Southern, and CSX. The board evaluated the contract demands of union workers and the offers from railroads to identify a potential compromise that includes a wage increase and bonuses while workers pay higher premiums for the same health insurance coverage.

If the railroads and workers’ union do not reach an agreement by mid-September, the union could initiate a strike. Congress, however, has the authority to require that work continue despite the strike, which would otherwise bring the national economy to a standstill.