Rail Strike Averted: Tentative Agreement Reached Between Railroads and Unions Comes on the Eve of Harvest

The agricultural industry is breathing a sigh of relief after a tentative agreement was reached to avert a national rail strike.  After 20 plus hours of continuous negotiations a deal was struck early Thursday morning between the National Carriers' Conference Committee – representing the nation's leading railroads – and the remaining unions representing railroad workers.

Ag groups are extremely pleased with the development.  Mike Steenhoek, Executive Director of the Soy Transportation Coalition says a strike or any disruption in rail service would have imposed significant harm on agriculture, particularly on the eve of harvest.  "Having this unprecedented uncertainty about rail service, which 30-percent of U.S. soybean exports are transported by railroads, that was really concerning.  So we were very pleased to see the announcement on the tentative agreement between the two parties.  That’s certainly a win for the American farmer."

The deal would give rail unions, representing 115,000 of their workers, a 24% wage increase during the five year period of the contract from 2020 to 2024.  It would also provide improved working conditions. This is consistent with the recommendations of the Presidential Emergency Board.  An immediate average payout of $11,000 will also be provided upon ratification by the union membership.  Steenhoek says, "I haven’t seen an announcement on when those votes will take place.  I anticipate that it will be in the next several week.  So that’s why you see the word tentative ascribed to this agreement.  My expectation is that the rank and file will approve it."

If an agreement between the two sides had not been reached by midnight on Friday, a railroad strike, lockout, or slowdown was possible.  Throughout this past week, railroads had increasingly been dialing down and suspending service due to the potential for a network stoppage starting on Friday.

President Joe Biden said in a statement on Thursday.  "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."