Rail strike averted, tentative agreement reached

With the deadline to avert a freight railroad strike by Friday morning approaching fast, a tentative agreement has been reached according to the Labor Department.

The new contracts provide rail workers a 24% wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification, the Association of American Railroads said. The industry trade group added that all tentative agreements are subject to ratification by the unions’ membership.

"These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned," President Biden said in a statement. "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."

U.S. Secretary of Labor Marty Walsh also tweeted the news of the tentative agreement.