White House Reaches Tentative Accord to Avert National Rail Strike

In a statement, President Joe Biden said the White House has reached a tentative agreement to avert a national rail strike. He says the offer will guarantee “better pay, improved working conditions, and peace of mind around their health care costs” for the workers.

"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," Biden said in the statement.

A Department of Labor official confirmed that a deal “that balances the needs of workers, businesses, and our nation’s economy” was reached in the early hours of the morning on Thursday after 20 consecutive hours of negotiations between rail companies and union negotiators.

“Secretary Walsh and the Biden administration applaud all parties for reaching this hard-fought, mutually beneficial deal,” a labor official said. “Our rail system is integral to our supply chain, and a disruption would have had catastrophic impacts on industries, travelers and families across the country.”

What are the approval odds?

Earlier this week, two unions rejected proposed tentative agreements brokered by labor leaders, indicating broader anger among union members about the deal proposed by Biden’s board.

The Association of American Railroads, in a statement thanking the involvement by Labor Secretary Marty Walsh, Transportation Secretary Pete Buttigieg and USDA Secretary Tom Vilsack, said "new contracts provide rail employees a 24% wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification, following the recommendations of Presidential Emergency Board (PEB) No. 250. All tentative agreements are subject to ratification by the unions’ membership.”

The details of the tentative agreement reached on Thursday morning have not been shared, and could still be voted down by members who need to ratify the agreement to settle the matter.

More on rail:
Railroad Strike Days Away? Here’s What it Means for Agriculture
U.S. Rail Carriers Could Now Halt Grain Shipments as Early as Wednesday in Preparation of Friday's Possible Strike
Grain Industry Watches as More Deals Announced Between Railroads and Labor: Say Strike Would be Devastating