Bing Guan | Bloomberg | Getty Images President Joe Biden announced a tentative railroad deal early Thursday, a last-minute deal that averts a national rail strike. The deal will improve railroad workers’ pay, working conditions and give them “peace of mind about health care costs,” Biden said in a statement. The new contracts give railroad employees a 24 percent pay increase over the five-year period from 2020 to 2024, including an immediate payment of an average of $11,000 upon ratification, according to the Association of American Railroads. All tentative agreements are subject to ratification by union members. 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 of workers, the Association of American Railroads said in a press release. “Thank you to the unions and railroad companies for negotiating in good faith and reaching a tentative agreement that will keep our critical rail system operating and avoid disrupting our economy,” Biden said in a statement. Negotiators from rail carriers and unions met in the office of Labor Secretary Marty Walsh on Wednesday as the sides tried to hammer out a deal before a Friday strike deadline. — CNBC’s Lori Ann LaRocco contributed to this report. This is breaking news. Check back for updates.
