MEMPHIS, Tenn. – Transportation Secretary Pete Buttigieg is urging Congress to come together in a bipartisan fashion to pass legislation to prevent a looming rail strike that would cripple the American economy, calling it the “best way forward” amid stalled labor negotiations between the major freight railroads and four hold-out unions.
Buttigieg’s comments came during a Tuesday evening interview with Fox News Digital at the Memphis International Airport, where he touted a $174 million investment from the Department of Transportation (DOT) for the production of de-icing pads at the facility
“Where I hope to see it going is bipartisan cooperation to move this quickly through Congress and get it to the president’s desk,” Buttigieg said. “Look, I don’t care what your politics are, America can’t have a rail shutdown. There is no substitute for a well-functioning rail system in the country.”
Buttigieg insisted a prior agreement reached in September by rail companies and union negotiators — which, according to the Association of American Railroads, would provide rail workers a 24% wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification — should be implemented through congressional action.
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Transportation Secretary Pete Buttigieg speaks during a news conference at the Memphis International Airport in Tennessee, on Tuesday, Nov. 29, 2022. (Lucy Garrett/Bloomberg via Getty Images)
“Now, this tentative agreement that was reached at the bargaining table back in September, no side got everything they wanted, but the companies and the union leaders agreed on this framework. Now, the president is asking Congress to enact that framework and prevent the possibility of a shutdown.”
When asked about potential backlash from congressional intervention, Buttigieg said, “we have encouraged the parties to resolve this at the table when things were beginning to get to an impasse. Pursuant to his authority, the president initiated that process that created the presidential emergency board. All of that set things in motion to get to that tentative agreement. Now we’re at a point where it is going to require an act of Congress to see that through and enact the deal.”
“It is the best way forward for us as a country, for our economy, and it means taking those hard fought negotiated outcomes that the parties, companies and Labor sat at the table and worked out, carrying those through and most importantly, avoiding a shutdown that would be devastating for workers and families across the country,” he added.
However, the intervention is already being met with opposition from both sides of the political aisle, setting the stage for a potential gridlock in Congress that could carry on past the Dec. 9 strike deadline. Rail workers and unions are calling for additional sick days to be included into the contract.
“If the rail industry can afford to spend $25.5 billion this year to buy back its own stock and hand out huge dividends to its wealthy shareholders, please do not tell me it cannot afford to guarantee paid sick days to its workers and provide them with a decent quality of life,” Sen. Bernie Sanders, I-Vt., said Tuesday.
Activists in support of unionized rail workers protest outside the U.S. Capitol on Nov. 29, 2022, in Washington, D.C. (Anna Moneymaker/Getty Images)
Sen. Marco Rubio, R-Fla., has criticized President Biden for seeking to impose a union contract that had been rejected by rank-and-file railroad workers.
“Just because Congress has the authority to impose a heavy-handed solution does not mean we should,” said Rubio. “It is wrong for the Biden Administration, which has failed to fight for workers, to ask Congress to impose a deal the workers themselves have rejected.”
The Association of American Railroads, which represents giant carriers including BNSF, CSX, Norfolk Southern and Union Pacific, estimates a rail shutdown would cost the U.S. economy $2 billion a day – and every American would feel it.
Biden warned Tuesday that if rail work stoppage occurs, up to 765,000 Americans “could be put out of work in the first two weeks alone.”
Following Biden’s call for congressional intervention, House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer said Tuesday they would work to pass legislation and implement a labor agreement for railroad workers.
The U.S. rail system moves cargo equal to 467,000 long-haul trucks each day, transporting hazardous chemicals, fertilizers, apparel, household and perishable goods. With the trucking industry already short-handed and a shortage of around 80,000 drivers, it would be impossible for other shipping options to fill the void if rail freight halts.
Freight cars sit in a rail yard on Nov. 22, 2022, in Wilmington, California. (Mario Tama/Getty Images)
Touting the DOT’s investment in the creation of a 3.3-million-square-foot de-icing facility at Memphis International Airport, which is home to FedEx’s largest air cargo sorting facility, Buttigieg said. “This is a major investment that includes over $173 million in federal support, because these de-icing facilities make it possible for our supply chains to work the way that they need to.”
“We’re talking about massive air operations. This is actually the busiest air cargo hub in North America. And we need to make sure that we’re doing everything we can to move goods efficiently and affordably. There’s been a lot of attention on passenger air travel. Cargo, air transportation is just as important to our economy. We want to shine a light on the equipment, but most importantly on the people who get that done, especially going into the holiday season.”
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Buttigieg — who ran for president in the 2020 Democratic presidential primaries — was also asked about 2024 and whether he would make a similar commitment to that of California Gov. Gavin Newsom, who dismissed speculation last week that he would challenge Biden in 2024 should he decide to seek re-election to the White House.
“I can’t talk about campaigns and elections while I’m in this capacity, but the president’s made clear his intentions,” Buttigieg said. “I’m proud to be part of this team and very proud to support everything the president is doing. We’ve got a lot to show for it and our work is just beginning.”
Fox News’ Haris Alic and Breck Dumas contributed to this article.
