An enormous supply chain jam threatens access to clean drinking water, agriculture products, and more, if rail companies and unions can’t agree on a deal by Dec. 8 to prevent a possible Dec. 9 rail strike.
As the strike deadline has moved, coalitions and individual industries have sent numerous letters to President Joe Biden’s administration, urging it to continue working to prevent a strike. These letters describe how a rail strike would affect certain vital sectors such as the supply of clean drinking water.
The letter is signed by executives from the American Water Works Association, National Association of Water Companies, Association of Metropolitan Water Agencies, National Rural Water Association, National Association of Clean Water Agencies, and the Water Environment Federation.
Trouble could start before a strike, the letter warns. The water industry anticipates rail companies will begin slowing shipments of water treatment products in advance of a strike to avoid stranding shipped products in unsecured locations.
Under the 1926 Railway Labor Act, Congress could intervene to keep the railroads operating.
The National Association of Chemical Distributors (NACD) agrees that any interruption to freight rail service would risk water treatment facilities across the country not having the chemicals needed to operate. And there is more.
World Food Supply
The Agricultural Retailers Association along with nearly 70 other agriculture associations sent a letter to Congress asking for intervention and describing the role of the U.S. rail network that moves agricultural inputs and large quantities of agricultural products to both domestic facilities and to ports for export abroad. Some of the signers include the National Corn Growers Association, National Cotton Ginners Association, Beer Institute, Leather and Hide Council of America, and The Fertilizer Institute.“A complete stoppage of the rail system would lead to shutdowns or slowdowns of rail-dependent facilities resulting in devastating consequences to our national and global food security,” the letter said. “Leaders around the world are already concerned about food shortages and famine due to drought and geopolitical challenges, such as the invasion of Ukraine, which accounts for ten percent of the global exports of wheat.”
The freight rail system is already challenged with delays in service, according to the letter.
“A complete stoppage of rail service, even for a single day, would escalate these challenges,” the agriculture letter said. “Most freight railroads currently lack extra capacity to make up for down time. Thus, a sizable portion of freight backlogged due to a stoppage may never be made up leading to less production from rail-dependent businesses to the detriment of producers and consumers.”
A group of 12 rail unions must all accept a labor agreement that includes a 24 percent pay raise over five years, an extra personal day off, a cap on health care costs, and being able to miss work for medical reasons without penalties. While most have agreed to the terms, some unions are holding out for paid sick days.