The House rejected proposals that would have allowed the President to ban strikes and to order the search of houses and offices without warrants.
They are currently covered by the Railway Labor Act, a Federal law that limits their right to strike but does not ban strikes.
State law bans strikes by public employees.
That law bans strikes by public employees, including transit workers, and fines workers two days' pay for every day they strike.
He angered labor unions by backing legislation to ban strikes at defense plants, which did hurt him politically.
The Conservative government passed legislation banning such strikes, and there was little permanent impact one way or the other.
A week ago, Pakistan and India agreed to put into effect a 1988 treaty banning first strikes on each other's nuclear installations.
The government finally agreed to fresh negotiations and promised not to proceed with legislation on banning strikes for two years.
The army has banned strikes, and yet the western media is largely silent on this now.
The plan includes a new effort to ban strikes, budget cuts and fresh assurances for skeptical foreign investors.