The tentative agreement would avert the potentially devastating looming strike that had been set to begin Friday. Any work stoppage would have had aand national economy. The Association of American Railroads estimated a service disruption would cost the U.S. economy $2 billion daily.
"I especially want to thank Secretary Walsh for his tireless, around-the-clock efforts that delivered a win for the hard working people of the US rail industry: as a result, we will keep Americans on the job in all the industries in this country that are touched by this vital industry," Biden said. However, railroad workers continued to push for more quality-of-life improvements, including improved scheduling and more paid time off.
The agreement, which is subject to ratification by the unions' membership, follows the board's recommendation of a 24% wage increase over 5 years, with a 14.1% wage increase effective immediately and five annual $1,000 lump sum payments, according to a statement from the National Carriers' Conference Committee, which represents the nation's railroads in negotiations.