US rail companies reach initial agreement to stop strike

After all night deliberations, US President Joe Biden announced that a crippling railroad union strike has been avoided. The president says a tentative agreement has been reached to avert disruptions to US supply chains in the run-up to midterm elections.

Biden says he was personally calling into the negotiations as late as 9pm on Wednesday. The result of those negotiations is an initial resolution to allow a 24 per cent wage increase between the years 2020 to 2024. The agreement would see an immediate payout to railway workers.

The president called the agreement a “big win for America” and stated that the “dignity” of railroad workers had been honoured.

Today was the due date for a resolution, as strikes were promised if an agreement was not made. Such a strike would cause nationwide stoppages that would stall critical supplies. In the Covid-19 aftermath, this stoppage would impact the country as it recovers from the pandemic.

But, it isn’t just about the economy, as a strike of this scale would cause political damage to Biden’s administration as it strives to hold on to Congress in November’s midterm elections. Republicans are set to focus on high inflation, with a strike of this size to be a nail in the coffin for the Democratic Party.

“The hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought. These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned.”

Union Pacific, a major freight carrier, said it looked forward to unions ratifying these agreements and working with employees while focusing on restoring supply chain fluidity.

The Association of American Railroads, which represents the nation’s freight railroads, accepted and welcomed the deal.

SOURCE: Bangkok Post