We have been watching the difficult railroad labor negotiations. This is not a done deal and we need to continue to watch the situation closely and be ready for further supply chain challenges.

Today, the House voted for legislation aimed at blocking a national rail strike. The House passed a separate bill that would give workers seven sick days. Both bills now move to the Senate. The first is expected to pass. The fate of the second is unclear.

Without the emergency resolution, the nation’s valuable freight rail system, including passenger services, risk a full shutdown on December 9, with the potential for service disruptions by the railroads to begin as soon as December 5.

The tentative agreement—which collectively represent more than 100,000 workers—implements the recommendations of Presidential Emergency Board (PEB) No. 250, including the largest wage package in nearly five decades, maintains rail employees’ platinum-level health benefits, and adds an additional day of paid time off for represented workers.

John S. Connor is closely following these developments and will continue to provide updates.