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| Photo Credit: AP. |
Railroad workers will receive 24% pay raises and additional $5,000 in bonuses following a deal reached with President Joe Biden Thursday to avert a nationwide strike that was set to cripple economic activities especially freight, The Washington Times reports.
Under the
deal, unionized railroad workers will be able to take unpaid days off for
doctor’s appointments without being penalized under railroad attendance rules,
which according to The Washington Times has been a major contention that
necessitated the strike, the terms of the tentative agreement revealed.
The pay
raises are retroactive to July 2020, which allows the average rail worker to
receive back pay of up to $11,000, according to The Washington Times. The terms
were recommended by a presidential emergency board appointed by Mr. Biden this
summer and will be the biggest pay raises the average rail worker has received
in more than four decades.
The railroad
industry said that average rail worker salaries will reach $110,000 by the end
of the five-year deal in 2025.
The deal
also includes increases to hearing aid benefits and coverage for autism without
age limitations. Union workers will not have any changes in copays, deductibles
and out-of-pocket maximums.
On Thursday,
the nation’s six largest railroads and representatives of 12 unions struck the
deal in the early hours of the morning following a lengthy negotiation at the Labor
Department lasting for about 20 hours, ahead of a 12:01 am. Friday potential
strike, The Washington Times reported.
“This is a
win for tens of thousands of rail workers, and for their dignity, and the
dignity of their work,” Mr. Biden said, at a meeting of labor leaders and
government officials on Thursday morning. “It’s a recognition that during the
early dark, uncertain days of the pandemic, they showed up so every American
could keep going.”
Labor
Secretary Marty Walsh who hosted the final talks said he doesn’t think the deal
will lead to carries passing on higher labor costs to customers, or by other
unions seeking better working conditions, a move that could contribute to inflationary
figures.
“The
companies have done really well in the last couple of years,” Mr. Walsh said on
Fox Business Network, according to The Washington Times. “The workers have
worked really hard. They have worked through a pandemic. They have kept our
supply chains moving forward. And what we have to do is respect our workers,
quite honestly. And I think that that’s what this contract shows. Workers are
looking for a share of what profits are being made.”