Joe Biden hails US railway deal that averted nationwide strike
- The last-minute agreement was reached after a marathon 20 hours of talks, with the president stepping in partway
- A stoppage would have struck a major blow to the US economy, hurting Biden and the Democrats less than 2 months before the midterm elections
President Joe Biden hailed a tentative agreement railways and unions reached to avert a work stoppage that threatened the US economy.
“This agreement is a big win for America,” Biden said in a speech from the White House Rose Garden on Thursday.
He added, “This is a win for tens of thousands of rail workers, and for their dignity – and the dignity of their work.”
Unions still must ratify the preliminary deal, but it marks a significant victory for Biden and cabinet officials, who were deeply involved in the marathon negotiations.
The agreement was reached after 20 consecutive hours of talks that began on Wednesday. Biden late in the day called into the negotiations, which were led by Labour Secretary Marty Walsh.
“The rail system literally is the backbone of the nation,” Biden said during an Oval Office meeting on Thursday with negotiators, top aides and cabinet officials, ahead of his formal remarks.
“It’s critical, critical in keeping the economy moving,” Biden said, adding, “We got a way to go. But I want to thank them all – business and labour.”
Biden, who has pledged to be the most pro-union president in history, joined the meeting virtually at 9pm on Wednesday as talks extended late into the evening, according to a White House official.
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He was forceful in compelling the two sides to reach a deal, and his statement to both sides that no deal was not an option left an impression, the official said.
Negotiators had until Friday to reach a deal to avert a strike or lockout that would have snarled supply chains and fuelled red-hot inflation, while dealing a blow to Biden and Democrats less than two months ahead of the November midterm elections.
Instead, the president is coming away with a deal that could prove to be a validation of his negotiating skills.
While the agreement could take several weeks to take effect, union members agreed not to strike – meaning freight railways will continue to operate as usual and critical materials, commodities, food and consumer goods will reach their destinations.
The deal includes new medical leave policies, according to two unions, a major concession to labour groups that had held out for the ability to miss work for health emergencies without being fired or reprimanded.
The tentative freight-rail agreements include a 24 per cent wage increase over five years, 2020 through 2024, including 14.1 per cent effective immediately, as well as five annual US$1,000 payments, the National Carriers’ Conference Committee said.
Amtrak, which in anticipation of a strike had cancelled rail service in parts of the country where it operates on freight lines, said on Thursday it would work quickly to resume normal operations.
The cancellations did not affect travel in major eastern cities such as New York and Washington, where Amtrak operates its own lines.
