The tentative deal — confirmed by a group representing freight rail operators — still faces several steps before it is formally ratified. The unions must still vote on it, but the White House’s blessing of the new terms suggests that the worker groups have been closely involved. Often, the next step of the process can take several weeks, but during that time, union members agree not to strike.
The deal includes new leave policies, a significant concession by train carriers to workers who had demanded greater flexibility to be able to miss work for medical emergencies without being fired or punished, according to two people familiar with the matter who spoke on the condition of anonymity to describe details of the negotiation not yet released.
As he pressed for a deal, Biden became personally animated about the lack of leave, and he brought up repeatedly that he did not understand why workers could not be granted more flexible schedules, according to one of the people.
Negotiators had until Friday at 12:01 a.m. to reach a deal to avoid a major impact to the economy. Tens of thousands of jobs could have been affected, potentially snarling the shipment of freight and the movement of commuter trains all over the country.
As the deadline neared, negotiations shifted to Washington, where rail executives and labor leaders met at the Labor Department with Secretary Marty Walsh. Biden remained closely involved in the talks, and phoned Walsh and the negotiators at 9 p.m. Wednesday to encourage them to secure the tentative pact, said a person briefed on the discussions who was not authorized to talk to the media.
The implications of a rail strike could have been monumental, snarling the movement of goods and potentially leading to massive layoffs. Large parts of the nation’s economy move through the rail system. And the disruption on commuter trains also would have been felt across the country. Strikes were planned in major cities, including Stockton, Calif.; Cleveland; and Baltimore. This could have caused major supply chain disruptions, driving up prices on a range of goods during a period of high inflation.
The political consequences of a rail strike less than two months before the midterm elections also could have been enormous for Democrats, who could have been blamed for not securing a deal. Biden was involved in the talks all week, as were three of his Cabinet secretaries, his top economic adviser and his chief of staff.
Rail operators had begun preparing for a strike before the Friday deadline. Amtrak was beginning to suspend long-distance rail service, and some freight operations were also being halted. It was unclear how quickly those operations might resume based on the tentative deal.
A Labor Department official confirmed that a deal “that balances the needs of workers, businesses, and our nation’s economy” was reached early Thursday morning 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 Department 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.”
At issue were the rail carriers’ attendance policies, which conductors and engineers said punish them and put them at risk of termination for attending to routine doctor’s visits and…
Read More: Railroad strike appears averted as Biden announces “tentative” deal
