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With freight rail strike looming, passenger service, economy could face disruptions

A strike could begin as early as Friday, impacting billions of dollars worth of economic activity within the United States.

SAINT PAUL, Minn. — Amtrak has now suspended daily passenger service on nearly a dozen routes, including the Empire Builder that runs through the Twin Cities, ahead of a potential freight rail strike that could begin as early as Friday.

While Amtrak is not involved in the labor dispute, the company uses lines owned by freight companies and said in a statement it "has now begun phased adjustments to our service in preparation for a possible freight rail service interruption later this week." 

At Union Depot in St. Paul, a scheduled 11:13 p.m. westbound departure on Tuesday toward Seattle was canceled, although Amtrak did not add any visible signage to indicate itinerary changes. It is not clear when service on the Empire Builder or other routes might be restored.

"These adjustments are necessary to ensure trains can reach their terminals before freight railroad service interruption if a resolution in negotiations is not reached," Amtrak said in its statement. 

Two of the largest unions representing engineers and conductors are currently embroiled in an argument with the freight rail companies over attendance and sick leave policies. If these tens of thousands of workers walk off the job, the Association of American Railroads estimates that 7,000 trains would be sidelined and the economy might take a hit of $2 billion per day. 

"This weekend is a time for people to cross their fingers," said Dr. David Vang, a professor of finance at the University of St. Thomas. "It would have a huge impact on everything — from getting rid of hazardous waste to getting food, baby formula, all those kind of things. It would be quite substantial."

The Biden administration is already scrambling to avoid a strike at all costs. 

On Tuesday, White House Press Secretary Karine Jean-Pierre said a shutdown "would have a tremendous impact on our supply chains" and a "ripple effect into our overall economy."

"A shutdown is not acceptable. That is not something that we want," Jean-Pierre said. "It risks harming families, it risks harming businesses and whole communities. And we have made that clear, emphatically and repeatedly to both parties."

If the unions and freight companies fail to reach a deal, Congress could intervene to stop the strike by invoking the Railway Labor Act.

"I'm giving my forecast: I think an agreement will probably be made, or the White House will really try to force some agreement to be made," Dr. Vang said. "I think there's a lot of political pressure on the White House to strong-arm some kind of deal to happen by Monday — if not, by some time next week." 

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