WASHINGTON (AP) – United States (US) President Joe Biden said yesterday that a tentative railway labour agreement has been reached, averting a strike that could have been devastating to the economy 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 today that could have shut down rail lines across the country.
Biden made a key phone call to Labor Secretary Marty Walsh at 9pm 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, when majorities in both chambers of Congress, key governorships and scores of important state offices will be up for grabs.
That left him in the awkward position on Wednesday. He flew to Detroit, a stalwart of the labour movement, to espouse the virtues of unionisation, while members of his administration went all-out to keep talks going in Washington between the railroads and unionised workers.
As the administration was trying to forge peace, United Auto Workers (UAW) Local 598 member Ryan Buchalski introduced Biden at the Detroit auto show on Wednesday as “the most union- and labour-friendly president in American history” and someone who was fighting for the working class”. Buchalski harked back to the pivotal sitdown strikes by autoworkers in the 1930s.
In the speech that followed, Biden recognised that he wouldn’t be in the White House without the support of unions such as the UAW and the International Brotherhood of Electrical Workers, saying autoworkers “brung me to the dance”.
But without a deal among the 12 unions in talks back in Washington, Biden also knew that a stoppage might have begun as early as Friday that could halt shipments of food and fuel at a cost of USD2 billion a day.
Far more was at stake than sick leave and salary bumps for 115,000 unionised railroad workers.
The ramifications could have extended to control of Congress and to the shipping network that keeps factories rolling, stocks the shelves of stores and stitches the US together as an economic power.