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Rail companies and union negotiators reached a tentative agreement last Thursday, the U.S. Department of Labor has announced. In the midst of fears over strikes and lockouts as the end of the cooling-off period at 0:01 a.m. on Friday was approaching, nationwide service suspensions have been averted. President Joe Biden applauded the agreement, saying that it will lead to increasing wages and improving labor conditions for railway workers and avoiding serious damage to the U.S. economy. The fears over labor actions have not been completely eliminated yet, however, as the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Transport Division of the International Association of Sheet Metal, Air, Rail and Transportation Workers (SMART-TD) will now submit the tentative agreement to the rank and file for a ratification vote by their memberships.
The tentative agreement incorporates a compound wage increase of 24% over the five years from 2020 to 2024 and $1,000 lump-sum bonus payments (totaling $5,000). Also, there will be no increases in insurance copays or deductibles, while monthly healthcare costs will be frozen. Workers will receive one additional pay day-off from sick leave and an ability to attend medical appointments without penalty.
A final decision will be made when BLET and SMART-TD members review the terms and approve them through ratification votes. It is estimated that vote counting will take a few weeks.
