A tentative deal between labour unions representing railroad workers and a group of the largest freight rail carriers in the US is being hailed as a significant win for the Biden administration after the last-minute agreement averted a strike that would have paralysed supply chains across the country.
In a statement, President Joe Biden said the agreement — which must be approved by labour unions — is “a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America’s families and communities got deliveries of what have kept us going during these difficult years” and will ensure that workers receive “rail workers will get better pay, improved working conditions, and peace of mind around their health care costs”.
“The agreement is also a victory for railway companies who will be able to retain and recruit more workers for an industry that will continue to be part of the backbone of the American economy for decades to come,” the president added.
Mr Biden spoke about the agreement alongside the negotiators from the White House Rose Garden on Thursday. He said the deal was “a big win for America” and a way to recognise the tireless work of the railroad workers during the “early, dark and uncertain days” of the Covid-19 pandemic.
“Together we reached an agreement — you reached an agreement — that will keep our critical rail system working and avoid disruptions of our economy,” Mr Biden said.
The president added that the deal is “validation” of his long-held belief that unions and management “can work together for the benefit of everyone”.
“With unemployment still at record lows amid signs of progress at lowering costs, this agreement allows us to continue to rebuild a better America with an economy that truly works for working people and their families,” he said.
The National Carriers’ Conference Committee — the industry group representing freight carriers in the negotiations — said they were “pleased to announce” the tentative deal between their members and the three largest railroad worker unions representing roughly 60,000 workers: Brotherhood of Locomotive Engineers and Trainmen Division of the International Brotherhood of Teamsters; the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division; and the Brotherhood of Railroad Signalmen.
The carriers group thanked the union leadership teams “for their professionalism and efforts during the bargaining process” and gave credit to Labour Secretary Marty Walsh, Transportation Secretary Pete Buttiegieg, and Agriculture Secretary Tom Vilsack for their assistance in reaching an agreement.
The new agreement came following marathon negotiations between the unions, the NCCC, and officials from the US labour and transportation departments at the Department of Labour’s headquarters.
An administration official told The Independent the talks ran long into the night, with Mr Walsh — a long-time labour union member — leading the negotiations and Mr Buttigieg working the phones throughout. The official said Mr Biden called into the negotiations around 9pm on Wednesday evening to declare a potential shutdown of US railways unacceptable and exhort both sides to find room for an agreement.
At 2am on Thursday, Mr Walsh telephoned the White House to inform officials that there appeared to be a deal between the railroads and unions. The parties had until 12.01am on Friday to avert a strike.
Mr Biden welcomed the negotiation participants to the Oval Office on Thursday and said “it feels good” to have a deal.
“Twenty straight hours and I want to thank business and labour,” he said.
A significant portion of the US economy depends on the freight rail system, and a strike by railroad workers would have halted the movement of goods by rail across the US, leading to shortages, possible layoffs, and increased prices during a period of inflation at levels not seen since the 1980s. The spectre of a strike also led commuter rail services to cancel service across the US because most commuter rail services rely on the same tracks and railroad workers as freight services.
Amtrak, the government-owned company that runs interstate passenger rail service in the US, said it was “working quickly” to restore service it had cancelled ahead of the potential strike deadline.
House Speaker Nancy Pelosi called the agreement, which must still be approved by the unions, “good news for our nation’s economy, our security and the well-being of the American people”.
Ms Pelosi also commended Mr Biden “for his personal involvement and insistence on resolution” and Mr Walsh for having led the last-minute talks.
Ohio state senator Kenny Yuo, the leader of the Democratic caucus in the Buckeye State’s upper chamber, took to Twitter to thank Mr Biden for “for showing the respect that was for so long denied” to railroad workers.
“To my sisters and brothers working in the railroad industry, thank you for all that you do and for your patience that truly has been stretched to the limit,” he added.
