Railroad Strike Averted After Tentative Late-Night Deal Is Reached

Railroad Strike Averted After , Tentative Late-Night Deal Is Reached.

Reuters reports that after 20 hours of talks, U.S. railroads and unions came to a tentative deal , to avoid a shutdown that would have impacted food and fuel supplies across the U.S., Canada and Mexico.

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President Biden announced the deal early on Sept.

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The tentative agreement reached tonight is an important win for our economy and the American people, President Biden, via statement.

It is a win for tens of thousands of rail workers who worked tirelessly through the pandemic to ensure that America’s families and communities got deliveries of what have kept us going during these difficult years.

, President Biden, via 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, President Biden, via statement.

According to the railroad companies, workers would receive an instant 14.1% wage increase.

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CNBC reports that close to 40% of America's long-distance trade is conducted by railroad.

If a strike would have been implemented, it could have cost the nation's economy up to $2 billion a day.

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The unions will now vote on the tentative new deal.