US railroads, unions reach tentative deal to avert strike

Bloomberg

US railroads and unions reached a tentative deal on Thursday, a breakthrough that looks to avert a labour 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 organised labour, 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 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.
The committee 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 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.
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.