WASHINGTON — A freight railroad company and unions representing tens of thousands of workers reach a tentative agreement to avoid an economically damaging strike after all-night talks brokered by Labor Secretary Martin J. Walsh. reached, President Biden said early Thursday morning.
The agreement is now open to members for a ratification vote, which is the standard procedure for labor consultations. The workers agreed not to go on strike while the votes were being tallied.
The talks, brokered by Walsh, began Wednesday morning and lasted 20 hours. Biden called around 9 p.m. Wednesday, according to people familiar with the meeting. hailed the deal in a lengthy statement on Thursday.
“Tonight’s interim deal is an important victory for our economy and the American people,” Biden said. “This is a victory for the tens of thousands of rail workers who have worked tirelessly through the pandemic to ensure that American families and communities get what has kept us going during this difficult time. ”
The White House did not immediately announce details of the deal. Negotiations stalled over lobbying companies to improve working conditions, such as allowing workers to take unpaid leave to visit doctors.
The state of jobs in the United States
Economists have been surprised by recent strength in the labor market as the Federal Reserve (Fed) plots to slow the economy and curb inflation.
“These railroad workers will get higher wages, better working conditions and peace of mind about their medical bills, all of which are hard earned,” Mr. Biden said. “This deal is also a win for the railroad companies, which will be able to secure and recruit more workers for an industry that will remain part of the backbone of the American economy for decades to come.”
The American Railroad Association, a trade group, thanked unions and Biden administration officials, including Walsh, Transportation Secretary Pete Buttigieg and Agriculture Secretary Tom Vilsack, for their help in closing the deal. did.
“We appreciate the dedication of all members involved in the collective bargaining process.” the association said in a news release“These new contracts will provide rail workers with a 24% wage increase over the five-year period from 2020 to 2024. This includes an average immediate payout of $11,000 upon ratification.”
Mr. Walsh wrote on twitter The agreement “balances the needs of workers, businesses and our economy.”
“Our rail system is integral to our supply chain,” he says. said in a follow-up tweet“And the disruption would have had a devastating effect on industries, travelers and families across the country.”
Biden and his economic team have been increasingly involved in negotiations over the past week to avoid work stoppages that would have disrupted the distribution of food, water treatment plant chemicals and vital commodities across the country. Such a halt also risks causing store shelf shortages that could send consumer prices skyrocketing, with inflation reaching a 40-year high this summer. aggravated further.
Unions and the freight rail industry were negotiating ahead of Friday’s deadline after a federally-imposed “cooling-off period” ended and workers were free to strike if no deal was reached. The possibility was already shaking both freight and passenger rail companies.
Nearly one-third of U.S. freight traffic travels by rail, second only to trucking.American Railroad Association Estimate The nationwide rail service disruption was expected to bring more than 7,000 trains to a halt each day, costing the economy more than $2 billion a day.
The railroad company last week began warning customers to prepare for the strike by cutting some services. Union Pacific, CSX and BNSF all said they will begin securing hazardous and toxic materials Monday to ensure they are not left unprotected in the event of a strike. Norfolk Southern closed the gates for containers shipped from trucks and ships on Tuesday, Said The company had planned to completely shut down the network at midnight Thursday.
On Wednesday, in anticipation of the strike, Amtrak announced that it would suspend all long-distance travel starting Thursday to avoid people being stranded, given that many of its trains run on tracks operated and maintained by freight carriers. announced the cancellation of passenger trains.
Administrative authorities have begun developing contingency plans to minimize disruption to critical cargo in the event of a strike. These plans included working with trucking companies, shipping companies, and other alternative modes of transport to ensure that some supplies reached their destination.
Anna Swanson contributed to the report.