President Joe Biden says tentative railway labor agreement reached

Tank cars filled with oil are seen in storage at the BNSF Railway Company’s Watson Yard in Wilmington, California, U.S. on Tuesday, April 21, 2020.

President Joe Biden said a tentative agreement was reached to give rail workers better pay, improved working conditions, and peace of mind about their health care costs.

According to the Association of American Railroads, the new contracts will give rail employees a 24% wage increase over the next five years. The unions are required to approve all tentative agreements.

Tentative agreements have been reached with 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, which collectively represent approximately 60,000 employees.

Biden thanked the unions and rail companies for negotiating in good faith and reaching a tentative agreement that will keep the rail system running.

The sides tried to reach a deal before the strike deadline, as they met in Labor Secretary Marty Walsh's office.

The report was contributed to by CNBC.

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