Rail strike to be averted: US President Joe Biden to sign bill

President Joe Biden is signing a bill Friday to avert a freight rail strike that he said could have plunged U.S. into recession.

White House said that Biden would sign a measure passed Thursday by Senate and Wednesday by House that binds rail companies and workers to a proposed settlement that was reached between rail companies and union leers in September.

Members in four of 12 unions involved rejected proposed contract, creating risk of a strike beginning Dec. 9 that government has likely staved off with bill signing. A freight rail strike also would have a big potential impact on passenger rail, with Amtrak and many commuter railros relying on tracks owned by freight railros.

president has said that a strike would have sunk U.S. economy, causing roughly 750,000 job losses as work stoppage ruptured supply chains for basic goods, food and chemicals needed to ensure clean drinking water.

Rising prices alrey have many Americans afraid of a coming downturn, but U.S. job market has been stey. government reported Friday that employers ded 263,000 jobs in November as unemployment rate held at 3.7%.

Though Biden is a staunch union ally, he said rail order was necessary to prevent a strike.

Biden ministration helped broker deals between railros and union leers in September, but four of unions rejected deals. Eight ors approved five-year deals and all 12 are getting back pay for ir workers for 24% raises that are retroactive to 2020.

But absence of a meaningful increase in paid sick leave and or quality-of-life issues was a key concern for many union members whose votes were required for settlement. railros say unions have agreed in negotiations over deces to forgo paid sick time in favor of higher wages and strong short-term disability benefits. Union members say railros could afford paid leave given ir profit margins.

House Democrats narrowly opted a measure to d seven days of paid sick leave to tentative agreement, but that change fell eight votes shy of 60-vote threshold needed for Senate passage.