US railway companies, unions reach tentative agreement

ABC News

American railway companies and unions have reached a tentative labor agreement amid the threat of strikes.

U.S. Secretary of Labor Marty Walsh announced the news on Twitter early Thursday, “following more than 20 consecutive hours of negotiations at” his office in Washington, D.C. He said the tentative agreement “balances the needs of workers, businesses, and our nation’s economy.”

“The Biden Administration applauds all parties for reaching this hard-fought, mutually beneficial deal,” Walsh added. “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.”

The two largest rail unions — the Brotherhood of Locomotive Engineers Trainmen, or BLET, and the SMART Transportation Division, or SMART-TD, which make up roughly half of all rail workers — had held out in negotiations as nine other unions reached agreements with the companies by Wednesday.

BLET and SMART-TD confirmed the tentative agreement in a statement on Thursday.

“Early this morning, following nearly three years of bargaining, the [BLET] and [SMART-TD] reached a Tentative National Agreement with the nation’s largest freight rail carriers that includes wage increases, bonuses, with no increases to insurance copays and deductibles,” the unions said.

The agreement improves the time-off policies at the rail companies, which made up a key sticking point in the negotiations, the unions said in the statement.

“For the first time, our unions were able to obtain negotiated contract language exempting time off for certain medical events from carrier attendance policies. Our unions will now begin the process of submitting the tentative agreement to a vote by the memberships of both unions.

President Joe Biden released a statement early Thursday, calling the tentative agreement, “an important win for our economy and the American people.”

“It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America’s families and communities got deliveries of what have kept us going during these difficult years,” Biden said. “These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned. 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 president thanked the rail companies and unions as well as Walsh and other officials in his administration, noting that the deal will “keep our critical rail system working and avoid disruption of our economy.”

“As a result, we will keep Americans on the job in all the industries in this country that are touched by this vital industry,” he added. “For the American people, the hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought.”

Passenger railroad service Amtrak told ABC News in a statement Thursday, that it “is working to quickly restore canceled trains and reaching out to impacted customers to accommodate on first available departures.”

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