With President Biden’s Help, A Costly Railroad Labor Strike is Averted

After around the clock negotiations, unions and railroad management reached a deal early Thursday morning that averts a railroad strike that had threatened to further snarl US supply chains and push prices higher for many goods.  The deal with unions representing more than 50,000 engineers and conductors was announced today in a statement from the White House which called it “an important win for our economy and the American people.”  Terms of the deal include:

• Voluntary assigned days off and one additional paid day off
• A wage increase of 14% and 24% over the next five years
• No disruption to the current health plan
• Annual lump sum bonuses of $5,000.00

The deal needs to be approved by union members before it can go into effect.  Still, it is good news for manufacturers and the wider US economy as about 30% of the nations freight is transported by rail.  For more information on this matter, or any government related issues, please contact Marc Pasternak at mpasternak@vma.org.