President Joe Biden said Thursday that a tentative railway labor agreement has been reached, averting a potentially devastating strike before the pivotal midterm elections.
Railroads and union representatives had been in negotiations for 20 hours at the Labor Department on Wednesday to hammer out a deal, as there was a risk of a strike starting on Friday that could have shut down rail lines across the country.
Biden made a key phone call to Labor Secretary Marty Walsh at 9 p.m. as the talks were ongoing after Italian dinner had been brought in, according to a White House official insisting on anonymity. The president told the negotiators to consider the harm to families, farmers and businesses if a shutdown occurred.
What resulted from the back and forth was a tentative agreement that will go to union members for a vote after a post-ratification cooling off period of several weeks.
“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 threat of a shutdown had put Biden in a delicate spot politically. The Democratic president believes unions built the middle class, but he also knew a rail worker strike could damage the economy ahead of the midterms.
