Last week’s railway labor agreement legislation prevented an economic crisis that would have been disastrous amid already historic inflation, labor shortages, and supply chain challenges.
This Congressional action elevates the economic importance of bipartisan legislating during difficult times. Both the U.S. House and Senate swiftly passed the legislation by wide margins to avoid a far-reaching strike that would have crippled the economy – with costs eventually reaching $2 billion a day, according to some estimates.
Here are the Chamber’s takeaways:
Crisis Averted for Michigan’s Automotive Industry
In 2021, railroads carried $186 billion of freight between the U.S., Canada, and Mexico. Due to the interconnected supply chain between the Detroit Region’s OEMs and suppliers under the U.S.-Mexico-Canada Agreement, a significant amount of that commerce is automotive components and vehicles. Any significant disruption would have added further strain to an industry still grappling with chip shortages and supply chain issues.
Swift Bipartisan Action Worth Applauding
The Detroit Regional Chamber applauds Congress for averting a crippling railway strike and passing bipartisan legislation fast enough to spare the economy additional strain. The U.S. Chamber also deserves credit for amplifying the urgency and economic impact of the situation to federal leaders.
Rail Strike Resolution Comes as Jobs Report Puts Focus Back on Inflation
This strike-averting legislation prevented another serious economic blow on the same day the November jobs report showed relatively strong job creation of 263,000 jobs — that unfortunately may further agitate efforts to curb inflation.