US railroads and unions reached a tentative deal early Thursday, a breakthrough that looks to avert a labor disruption that risked adding supply-chain strains to the world’s largest economy.
After 20 straight hours in the latest round of talks -- which included President Joe Biden and other administration officials -- the companies and union negotiators reached a preliminary agreement balancing the needs of workers, businesses and the economy, the Labor Department said.
It was a “hard-fought, mutually beneficial deal,” the agency said in a statement. “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.”
Unions were able to obtain negotiated contract language exempting time off for some medical events, which was a core issue for organized labor, the Brotherhood of Locomotive Engineers & Trainmen said in a statement. The BLET -- which represents about 37,000 workers -- was one of two unions that hadn’t accepted an earlier tentative agreement.
The BLET, the International Association of Sheet Metal Air, Rail & Transportation Workers, and the Brotherhood of Railroad Signalmen -- whose leadership on Monday had voted not to send an earlier deal to members for ratification -- have all now agreed to the tentative pact, according to the National Carriers’ Conference Committee, which represents national freight railways in bargaining. Together, the three speak for about 60,000 workers, it said in a statement.
Union Pacific and Norfolk Southern said Thursday they are working to resume normal operations after halting some service in anticipation of a work stoppage.
Thursday’s deal extends the so-called cooling off period -- during which the unions may not strike -- for several weeks, to give the unions time to ratify the agreement, a person familiar with the agreement said.
But ratification is not a given. Just this week a machinists union rejected a different tentative offer with rail carriers.
The tentative freight-rail agreements include a 24% wage increase over five years, 2020 through 2024, including 14.1% effective immediately, as well as five annual $1,000 payments, the National Carriers’ Conference Committee said.
Amtrak, which in anticipation of a strike had canceled rail service in parts of the country where it operates on freight lines, said Thursday it would work quickly to resume normal operations. The cancellations didn’t affect travel in major eastern cities such as New York and Washington, where Amtrak operates its own lines.