Crisis averted!Amtrak, union reach tentative deal to avoid general strike

Financial Associated Press, September 15 (Editor Niu Zhanlin) On Thursday, Eastern Time (September 15), the White House said that, under the mediation of the Biden administration, Amtrak had reached an agreement with the union that represents more than 100,000 employees. preliminary agreement. The breakthrough averted a worst-case scenario that could paralyze a key lifeline of the US economy and fuel US inflation hovering near 40-year highs, should the rail stoppages come to fruition.

The news had an important impact on the financial market as well. After a surge of almost 10% yesterday, the price of natural gas futures in the United States plunged almost 9% today, and is now at $8.29 per million British thermoc. US fuel and gasoline fell more than 5 percent.

“Thank you to the unions and railroad companies for their sincere negotiations and for reaching a tentative agreement to keep our critical rail systems running and avoid disrupting the economy,” Biden said in a statement. “With unemployment still near record lows, and signs of progress in reducing costs, tonight’s agreement allows us to continue our drive for long-term economic growth that ultimately serves families that works.”

This comes after a committee appointed by Biden last month published a series of recommendations to resolve the dispute, including raising wages and improving health care coverage. But the proposal does not include scheduling, attendance and other provisions essential to the two unions that had resisted a deal.

Those workers whose wages have been frozen will receive double-digit raises and changes to attendance policies, according to a union group leader. The railway said the deal included an immediate 14.1 per cent pay rise.

According to the official website of the US Department of Labor, the US Department of Labor issued a statement on Thursday that, after 20 consecutive hours of negotiations, the railroad company and union negotiators have reached a preliminary agreement that balances the needs of workers, businesses and the economy’ the nation.

The Biden administration applauds the efforts of all parties to reach this mutually beneficial agreement. The rail system is an integral part of the supply chain, and disruption to the rail system would have catastrophic effects on industries, travelers and households across the country.

Railroad workers will receive higher wages, better working conditions and health care costs, according to Biden’s tweet. Biden said he was grateful to unions and railroads for negotiating in good faith.

Amtrak said it is working to restore train service. Earlier, the company suspended all long-distance train services on Thursday in anticipation of a strike.

Matthew Shay, chief executive of the National Retail Federation, thanked the Biden administration for its intervention, adding in a statement that his group was relieved and cautiously optimistic.

The number of US railroad workers has fallen from more than 600,000 in 1970 to about 150,000 in 2022, according to the US Department of Labor. Over the past six years, the rail industry has seen massive layoffs, with companies cutting workers’ wages and other costs while boosting profits, buying back shares and paying dividends to investors.