The Association of American Railroads (AAR) has announced that tentative agreements have been reached with trade unions that will avert a potential strike in advance of a deadline that had been set for Friday 16 September 2022.
The Brotherhood of Locomotive Engineers and Trainmen Division of the International Brotherhood of Teamsters, the International Association of Sheet Metal, Air, Rail and Transportation Workers – Transportation Division, and the Brotherhood of Railroad Signalmen together represent around 60,000 employees.
The agreements are subject to ratification by the unions’ membership and provide rail employees with a 24 per cent wage increase during the five-year period from 2020 through 2024, including an immediate payout on average of $11,000 upon ratification.
US President Joe Biden said in a statement: “The tentative agreement reached tonight is an important win for our economy and the American people.
“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. These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned.
“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.
“I thank the unions and rail companies for negotiating in good faith and reaching a tentative agreement that will keep our critical rail system working and avoid disruption of our economy.
“For the American people, the hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought. With unemployment still near record lows and signs of progress in lowering costs, tonight’s agreement allows us to continue to fight for long term economic growth that finally works for working families.”
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