The trains will keep going, for now.
Labor Unions and freight companies reached a potential deal early Thursday morning after an all-night bargaining session, Labor Secretary Marty Walsh announced.
Moments ago, following more than 20 consecutive hours of negotiations at @USDOL, the rail companies and union negotiators came to a tentative agreement that balances the needs of workers, businesses, and our nation’s economy. (1/2)
— Secretary Marty Walsh (@SecMartyWalsh) September 15, 2022
Unions had said their workers would go on strike Friday without a deal. That possibility would have wreaked havoc in various industries, costing the economy around $2 billion a day, according to a report from the Association of American Railroads (AAR).
On Wednesday, Amtrak canceled all of its long-distance routes in anticipation of a strike by railroad workers but announced Thursday it was working to get them back online.
This labor dispute has been going on since 2019, per Axios.
Critics have noted that freight rail companies have trimmed workforces steadily — while bringing in the big bucks.
Two of the largest US railroad companies, Union Pacific and BNSF, (which is owned by Berkshire Hathaway) have given out $196 billion to shareholders via buybacks and dividends since 2010, according to The Guardian.
“The job is just really becoming fewer people doing more work faster,” said Ross Grooters, co-chair of union Railroad Workers United and engineer at Union Pacific told the outlet.
Labor unions were looking for less demanding attendance policies and the ability to take (not paid) time off for doctor’s appointments, according to the New York Times and The Guardian.
According to the AAR press release, this union dispute involved organizations including the Brotherhood of Locomotive Engineers and Brotherhood of Railroad Signalmen, collectively representing about 60,000 employees.
“Thanks to the dedication of all members involved in the collective bargaining process, these new contracts provide rail employees a 24 percent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification,” the statement added.
Union Pacific also released a statement about the issue:
Union Pacific, on the tentative railway labor agreement: pic.twitter.com/KMUDj2XT8J
— David Gura (@davidgura) September 15, 2022
If the freight railroads had shut down, it would have slowed down systems from food delivery to oil, per the AP.
Now, the agreement goes back to unions for a vote.
Meet the Dermatologist Who Wants to Save You Money — and Just Hit a $200 Million Milestone for Patients
Your Employees Want This Perk, and Giving It to Them Can Improve Your Bottom Line
The Hidden Dangers of Not Taking Your Vacation Days
This Family-Owned Manhattan Jewelry Shop Struggled to Rebuild After 9/11. Today, 2 Sisters Who Run the 46-Year-Old Business Reveal What It Takes to Persevere.
Businesses Need More Women Investors. Here’s How That Can Happen.
Franchising Isn’t for Entrepreneurs, It’s for Systempreneurs
This Former Disney Exec Shares Her 5 Most Valuable Takeaways on Leadership Following Viral LinkedIn Post