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A collaboration of more than 400 professional organizations, companies and groups have sent a letter to Congress asking them to step in an intervene to prevent a potential strike among railworkers. 

Groups who were signers of the request range from the U.S. Chamber of Commerce, National Association of Manufacturers, American Trucking Associations, American Farm Bureau Federation, Valve Manufacturers Association and other groups, and warned impacts of a potential strike could be felt as soon as Dec. 5.

To date, workers in eight unions have approved a tentative contract while four unions have rejected it.

The rail industry has estimated the impact of a strike at $2 billion per day. A strike would affect all of the major rail operators, including Union PacificNorfolk Southern and CSX. And if even one union chooses to strike, the broad impact would cripple the national freight rail network.

The American Chemistry Council, which represents companies including 3M, Dow, Dupont, BP, Exxon Mobil and Eli Lilly, said a rail strike would impact approximately $2.8 billion in chemicals cargo a week, and lead to a GDP decline and renewed inflation.

If a deal is not reached by 12:01 a.m. EST on Dec. 5, a strike could occur. The NAM and others have urged Congress to take action under the Railway Labor Act and pass legislation that would avert a strike if railroads and rail unions cannot reach such a deal.

“Manufacturers are disheartened by today’s news on the further unraveling of rail negotiations,” said NAM President and CEO Jay Timmons. “It’s clear that Congress, both Democrats and Republicans, must be prepared to work together immediately to avert a rail strike and prevent further damage to our supply chain.”

A rail traffic stoppage could freeze almost 30% of U.S. cargo shipments by weight, stoke inflation and cost the American economy by unleashing a cascade of transport woes affecting U.S. energy, agriculture, manufacturing, healthcare and retail sectors.

The letter to Congress said a potential strike could result in "interruptions in the delivery of fertilizers, chlorine, and other products essential to clean water, our food supply, and electricity generation." It warned a strike could halt passenger railroad Amtrak and commuter rail services that "would disrupt up to 7 million travelers a day."

The White House has called a rail shutdown "unacceptable." President Joe Biden's Presidential Emergency Board in August released the framework for the tentative deal forged in September between major carriers like Union Pacific Corp (UNP.N) and a dozen unions representing 115,000 workers.

Unions and railroads have until Dec. 9 to resolve differences. If they do not, workers could strike or railroads could lock out employees - unless Congress intervenes. But railroads would halt hazardous materials shipments at least four days ahead of a strike deadline.

Landscape Source: Getty Images

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