WASHINGTON — While President Joe Biden was quick to hail Thursday’s strike-averting rail agreement as a win for America, it was also a big win for him politically, allowing Democrats to sidestep what could have been an economic debacle before November’s midterm elections.
Pressured to choose between labor and business, the president pushed hard for them to work together.
Prodded by a strategic late-night phone call from Biden — and fortified with Italian takeout — corporate and union negotiators spent 20 hours in intense talks at the Labor Department. They reached wee-hours common ground following an appeal to act in the shared interests of the nation, avoiding a strike that would have shut down railroads across the country.
By keeping the trains running, Biden overcame a major economic threat that doubled as a political risk. His fellow Democrats already face a difficult fight to maintain their narrow hold on power in Congress amid soaring inflation. Biden’s own approval rating, though improving, is still underwater.
The tentative deal, which still requires approval from a dozen unions, would raise members’ pay 24% over five years and improve work schedules and health care in a way that Biden said recognizes “the dignity of their work.” Railroad companies could continue vital operations and avoid a costly shutdown, while being in a better place to recruit and retain employees.
“This agreement allows us to continue to rebuild a better America with an economy that truly works for working people and their families,” Biden said Thursday in celebratory remarks in the Rose Garden. “Today is a win, I mean it sincerely, a win for America.”
Members of one union, the International Association of Machinists and Aerospace Workers District 19, voted to reject the tentative agreement, but the IAM agreed to delay any strike by its members to allow more time for possible additional negotiations and for other unions to vote.
White House officials had worried that a rail shutdown, no matter how long, would have perilous economic consequences just as voters make up their minds ahead of the November elections. The settlement, instead, now provides Biden an opportunity to show his administration is delivering for voters, as dire news coverage yields to relief at the cost of only a few canceled Amtrak trains.
Through the talks, Biden managed to avoid the disruption without offending either labor or corporate constituencies. Biden, his advisers and Democrats across the country know the broadest possible coalition is needed to help candidates compete in midterms that have historically favored the party out of political power.
Biden intentionally chose not to dictate the terms of the agreement to either side, said Labor Secretary Marty Walsh.
“The president’s focus was making sure that a contract was done that is satisfactory to everybody — and also prevented a major disruption to our economy,” said Walsh, who moved the last six hours of negotiations into his office.
What initially appeared to be a worst-case scenario ultimately turned into a collective sigh of relief.
“This is the best outcome the Biden administration could have hoped for,” said Jake Rosenfeld, a sociologist at Washington University in St. Louis who has researched the labor movement. He noted that the unions’ requests for sick leave and reliable scheduling aligned with Biden’s own values.
“Unlike in past labor disputes involving the railroads, the administration never had to put real pressure on the unions, but instead could act like an honest broker looking for a compromise between management and union positions,” Rosenfeld said. “That keeps the administration in good graces with labor more broadly.”
Business interests also praised the administration’s efforts. John Drake, the U.S. Chamber of Commerce vice president of transportation policy, said Walsh came to the table with a level of expertise and the trust of stakeholders. That made it easier to finalize a deal.