Freight rail companies and union leaders representing tens of thousands of workers have reached a tentative deal to avoid an economically devastating strike, President Biden announced Thursday morning.
The deal, which must still be ratified by the workers themselves, was brokered during an all-night negotiating session led by Labor Secretary Marty Walsh.
The strike emerged as a possibility after the union leaders demanded workers be given higher wages and more time off to deal with family and medical emergencies. The freight companies have agreed to allow workers to take unpaid days off for medical care, the Washington Post reported. They previously were not allowed sick days.
“The tentative agreement reached tonight is an important win for our economy and the American people,” Biden said in a statement. “It 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.”
The strike was set to begin Friday, when a federally imposed “cooling off” period ends, but will now be delayed as the workers ratification process plays out.
“These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned,” Biden said. “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 strike was expected to cause crippling supply-chain problems, sending the price of groceries and other consumer items, which are already high due to inflation, soaring even further. In anticipation of the strike, Amtrak announced Wednesday that it was suspending all long-distance service beginning Thursday to avoid leaving passengers stranded on platforms around the country.
Many of the details of the agreement have not yet been released but the Association of American Railroads, an industry group, claimed that the talks resulted in significant wage bumps for workers.
“Thanks to the dedication of all members involved in the collective bargaining process,” the association said in a news release, “these new contracts provide rail employees a 24 percent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification.”