Early Thursday morning, President Joe Biden announced that the White House reached a “tentative agreement” to avert a nationwide rail strike that could have caused major supply chain issues and imperiled the nation’s economy.
Biden called the accord “a win for America.”
“This is a win for tens of thousands of rail workers and for their dignity, and for the dignity of their work. It’s a recognition of that,” he said in the White House Rose Garden. “During these early, dark, uncertain days of the pandemic, they showed up so every American could keep going. They worked tirelessly through the pandemic to ensure that families and communities got the deliveries they needed during these difficult few years.”
“Those rail workers will get better pay — 24% wage increase over the next five years — improved working conditions, peace of mind around their health care,” he added. “It’s about the right to go to a doctor or stay healthy.”
“With this agreement, railroad companies will be able to retain and recruit workers. They’ll be able to continue to operate effectively as a vital piece of our economy. They’re really the backbone of the economy,” Biden continued.
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.
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.
The threat of a shutdown had put Biden in a delicate spot politically. The Democratic president regurly says that unions “built the middle class,” but he also knew a rail worker strike could damage the economy ahead of the midterms.
That left him in the awkward position on Wednesday. He flew to Detroit, a stalwart of the labor movement, to espouse the virtues of unionization, while members of his administration went all-out to keep talks going in Washington between the railroads and unionized workers.
But after a long night, the talks succeeded and Biden announced Thursday that the parties had reached a tentative agreement to avoid a shutdown that would go to union members for a vote. The Democratic president hailed the deal in a statement for avoiding a shutdown and as a win for all sides.
Without the deal that was reached among the 12 unions, a stoppage could have begun as early as Friday that could halt shipments of food and fuel at a cost of $2 billion a day.
Far more was at stake than sick leave and salary bumps for 115,000 unionized railroad workers. The ramifications could extend to control of Congress and to the shipping network that keeps factories rolling, stocks the shelves of stores and stitches the U.S. together as an economic power.
Biden on Thursday specifically thanked lead negotiators and Labor Secretary Marty Walsh, whose hand he shook mid-speech, calling him a “card-carrying union member and the first union labor secretary in decades.”
“This agreement is validation, validation of what I’ve always believed: unions and management can work together … for the benefit of everyone.”
Walsh wrote on Twitter: “The Biden Administration applauds all parties for reaching this hard-fought, mutually beneficial deal. 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.”
White House press secretary Karine Jean-Pierre, speaking aboard Air Force One as it jetted to Detroit on Wednesday, said a rail worker strike was “an unacceptable outcome for our economy and the American people.” The rail lines and their workers’ representatives “need to stay at the table, bargain in good faith to resolve outstanding issues, and come to an agreement,” she said.
Biden faced the same kind of predicament faced by Theodore Roosevelt in 1902 with coal and Harry Truman in 1952 with steel — how do you balance the needs of labor and business in doing what’s best for the nation? Railways were so important during World War I that Woodrow Wilson temporarily nationalized the industry to keep goods flowing and prevent strikes.
Inside the White House, aides don’t see a contradiction between Biden’s devotion to unions and his desire to avoid a strike. Union activism has surged under Biden, as seen in a 56% increase in petitions for union representation with the National Labor Relations Board so far this fiscal year.
One person familiar with the situation told The Associated Press that Biden’s mindset in approaching the debate was that he’s the president of the entire country, not just for organized labor.
With the economy still recovering from the supply chain disruptions of the pandemic, the president’s goal is to keep all parties so a deal could be finalized. The person said the White House saw a commitment to keep negotiating in good faith as the best way to avoid a shutdown while exercising the principles of collective bargaining that Biden holds dear.
Biden also knew a stoppage could worsen the dynamics that have contributed to soaring inflation and created a political headache for the party in power.
