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union locations in his domestic travel, Walsh ingratiated himself with the President’s team at critical moments throughout the last year as officials grappled with other key supply chain problems. In late-night meetings and blunt conversations, Walsh has become an indispensable point person for Biden, one whom one official described as “a guy who is going to roll up his sleeves and do the work. Period.” The overarching message delivered, repeatedly, by Walsh and other top officials in recent weeks to freight-rail representatives had been clear cut: There’s no exit ramp or alternative in the works. The severity of consequences of a strike or lockout cuts across economic, public safety and public health. “It’s just unacceptable for them to not come to a resolution,” the source said. But despite two years of talks, the emergency board and its recommendations and the corresponding cooling off period, an increasingly heated dispute over engineer and conductor attendance policies had left talks at a virtual standstill between the two largest of 12 unions involved in the talks. The engineers’ and conductors’ unions say the railroads are requiring their members to be “on call” and ready to report to work on short notice as often as seven days a week. Penalties, based on a points system, can be applied for missing work due to doctors’ appointments or family emergency, the unions say. The emergency board’s recommendations called for workers to get an immediate 14% pay raise, plus back pay dating back to 2020. It also called for a 24% increase in pay during the five-year life of the contract from 2020 to 2024, and cash bonuses of $1,000 a year. But it

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did not address the staffing shortages and scheduling rules that drove the impasse — the critical component of the agreement that Walsh would help the two sides reach Thursday morning. Congress debated intervening While Biden administration officials went out of their way to avoid weighing in on the specific elements of the talks, the issue had become a growing flashpoint on Capitol Hill, where lawmakers actually had the authority to vote to implement an agreement over the objections of either or both parties — but only if they chose to go down that path. Biden tests his political strength in return to the campaign trail Republican lawmakers accelerated efforts to press Democratic leaders, who control the House and Senate majorities, to move forward on the option, but were met with resistance and clear signals action wasn’t imminent. Republican Sens. Richard Burr of North Carolina and Roger Wicker of Mississippi attempted to move a resolution that would’ve imposed the emergency board’s recommendations to resolve the dispute. But Sen. Bernie Sanders, the progressive Vermont independent, blocked the effort and in floor remarks detailed deep support for the union efforts. “I wonder if the CEOs and top executives of the railroads would get fired if they got sick or had a medical emergency in their families,” Sanders said. “I doubt it very much.” Several other key Democrats echoed those sentiments. “No one wants the railroad industry to cease operations this week,” House Transportation and Infrastructure Committee Chairman Peter DeFazio said in a statement. “But it’s time for the railroads to treat railroaders, the heart and soul of the industry, with some dignity and compassion.” Speaker Nancy Pelosi, noting the sick leave issue at the center of the dispute, said she’s been engaged in conversations about where the negotiations stand. “We’d rather see negotiations prevail so there’s no need for any actions from Congress,” Pelosi told reporters.

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The White House had also refrained from calling for any congressional action. Lessons gleaned from past crises Still, the potential for the current deadline to come and go had escalated long-running White House efforts to plan for, and around, major supply chain disruptions. The White House had been engaged in intensive discussions with key players in shipping, trucking and air freight to gauge the capacity to backfill freight rail disruptions. Officials have stressed in those conversations they are ready to deploy any tool at their disposal that would help. Analysis: Why labor unions are having a moment right now That included the likely the use of emergency authorities, which multiple agencies have been tasked with identifying and presenting as options during the multiple intra-agency meetings happening each day. What appeared from the outside to be a scramble, however, had a baseline in the extensive work the administration has done across the entire supply chain as the attempted to get in front of developing bottlenecks. Biden named retired Gen. Stephen Lyons, the former head of US Transportation Command, as his port and supply chain envoy in June. The position was an expansion of the portfolio held by John Porcari, Biden’s port envoy who played a critical role in easing the crisis in shipping last year. One of the first issues Lyons grappled with in his new role earlier this summer was establishing lines of communication between ocean liners and rail participants, officials said — something that deepened his relationships inside the industry, but also underscored the necessity of cooperation across supply chain components that are nearly entirely private-sector operated. Lyons has been regular consultations with industry participants across economic sectors that own the cargo being shipped, has standing meetings with players in each mode of transportation and has regularly briefed — along with Walsh — on the status of the labor talks. More than a year of outreach to key industry

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