US rail strike looming

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The clock is ticking for President Biden to decide what to do about a labour showdown that could see more than 100,000 rail workers going on strike. After more than two years of negotiations, railroads and the unions representing rail workers are at a stalemate over compensation and benefits related to their contracts. That impasse is expected to come to a head on Monday, when the deadline for negotiations comes and workers could begin going on strike. If the president declines to intercede in the railroad labor negotiations by appointing a Presidential Emergency Board (PEB) before 12:01 a.m. EDT on Monday, the railroads and unions could opt for operational shutdowns or strikes, respectively. If appointed, the board would make recommendations that could be used as a framework for a voluntary settlement. With consumer prices up at a blistering 9.1% annual pace for the month of June, and inflation as measured by producer wholesale prices at 11.3% for the year ending in June, the disruption would be disastrous for the economy.

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