A tentative deal between the remaining two railroad worker unions and the rail carriers has been reached.
Early Thursday morning, U.S. Department of Labor Secretary Marty Walsh tweeted that ”a tentative agreement that balances the needs of workers, businesses, and our nation’s economy” had been agreed upon by the rail companies and union negotiators after “20 consecutive hours of negotiations.”
“The Biden Administration applauds all parties for reaching this hard-fought, mutually beneficial deal,” Walsh wrote. “Our rail system is integral to our supply chain, and a disruption would have had catastrophic impacts on industries, travelers and families across the country.”
Pete Buttigieg, U.S. Secretary of Transportation, tweeted that “America’s rail system is vital to our economy and country. We thank the labor unions and railroad companies for staying at the table and avoiding a destructive shutdown by reaching a deal that benefits all parties.”
The agreement still must be ratified.
The nation’s freight carriers were on the verge of grounding to a halt as of midnight Friday if a deal wasn’t made. The Association of American Railroads, a trade group representing the railroads, said a strike and shutdown could cost $2 billion a day.
About 40% of the nation’s long-distance freight is transported by rail. A consequence of a railroad shutdown could have been increased strain on an already stressed over-the-road trucking industry.
For more on the potential issues for the beer industry and larger economy, read Brewbound’s previous coverage: Potential Railroad Worker Strike Presents Next Supply Chain Issue for Brewing Industry and Overall Economy.