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 “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,” the president 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,” he 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 believes 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.
Biden thanked the rail companies and unions for “negotiating in good faith and reaching a tentative agreement that will keep our critical rail system working and avoid disruption of our economy” and expressed his gratitude for the members of his cabinet who aided the talks, particularly singling out Labor Secretary Marty Walsh.
“I especially want to thank Secretary Walsh for his tireless, around-the-clock efforts that delivered a win for the hard working people of the U.S. rail industry: as a result, we will keep Americans on the job in all the industries in this country that are touched by this vital industry,” Biden said.
“The Biden Administration applauds all parties for reaching this hard-fought, mutually beneficial deal,” Walsh wrote on Twitter. “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.”
“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,” the president concluded. “With unemployment still near record lows and signs of progress in lowering costs, tonight’s agreement allows us to continue to fight for long term economic growth that finally works for working families.”
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.
That’s why 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.
This is a developing story. Check back for updates.
