Rail Companies, Unions Avoid Labor Strike
U.S. rail companies and union negotiators this week agreed to avoid a labor strike that would have caused “catastrophic impacts on industries, travelers and families across the country,” the Department of Labor said Sept. 15. The two sides agreed to forego the strike, which was scheduled to begin at midnight Sept. 16, after 20 consecutive hours of negotiations, the agency said. The “tentative” deal for rail workers “balances the needs of workers, businesses and our nation’s economy.”
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The rail labor unions were expected to strike this week if they didn’t receive and approve new labor contracts, setting up potential disruptions to railways across the country. The National Railway Labor Conference said the agreement includes wage increases and will “avert a possible work stoppage.” President Joe Biden said rail workers will “get better pay” and railway companies 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.”
National Retail Federation CEO Matthew Shay responded to the news by saying: “We are relieved and cautiously optimistic that this devastating nationwide rail strike has been averted. We appreciate the Biden administration’s intervention on behalf of the businesses and consumers who would have been impacted at a time when high inflation and economic uncertainty are challenging consumer budgets and putting business resiliency at risk.
“We hope railway workers will accept the new terms of the proposed contract and the railway system can continue to operate on behalf of the millions of hardworking Americans who rely on it for their jobs and the economic security of our country.”
American Apparel and Footwear Association CEO Steve Lamar also praised the administration's intervention."If a deal is not completed in full, the 25 percent of apparel and footwear that typically touches the rail lines would immediately get stuck and threaten the busy fall shopping season. Trucking demand would skyrocket amid a very real truck driver and chassis shortage and delivery of all additional consumer products would suffer from the ripple effects," he said. "At the same time, we continue to urge speedy conclusion of the parallel labor negotiations at the West Coast Ports -- now in their fourth month ... ."