President Joe Biden has announced "an important win for our economy and the American people" after his administration came to a tentative deal to avert the upcoming U.S. railroad strike, The Wall Street Journal reported on Thursday.
A duel between 60,000 rail workers, their unions and some of the largest U.S. railroad operators over new work terms was rattling commodity markets, but the Biden administration said it had been holding talks with representatives from all sides to avoid disruptions.
Biden said the tentative agreement will "keep our critical rail system working and avoid disruption of our economy."
The Biden administration had been holding talks with representatives from both sides to avoid transport disruptions that could have snarled supply chains, putting new pressure on prices when inflation has been hovering near four-decade highs.
The White House had intervened in July as well to avert a strike, naming a panel of arbitrators to mediate the matter. The current dispute goes back three years and mainly centers around pay hikes, sick leave and time-off policies.
A 12:01 a.m. Friday deadline was set to agree to new work terms, and no deal would have cost the nation $2B in economic output per day.
The White House statement did not lay out details of the deal.
Related tickers: BNSF Railway (BRK.A) (BRK.B), Brookfield Infrastructure Partners (BIP), Canadian National Railway (CNI), Canadian Pacific (CP), CSX Corporation (CSX), Union Pacific (UNP), Norfolk Southern (NSC) and the iShares Transportation Average ETF (IYT).
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