The US was successful in nearly avoiding its first nationwide rail strike in three decades. Read to know all about the new proposal.
Why was a rail strike threatening the US?
For the last three years, rail corporations and labor unions in the US have been in conflict about the new contract addressing the workers’ poor work conditions, scheduling, and lower salaries. From November 2018 to December 2020 over 40,000 jobs were lost in the US railway industry leading to big windfalls. As per a Vox report, most of the 12 labor unions that were representing railway workers agreed to a proposal on July 25 to resolve the dispute. It included a 24 percent rise in salaries. However many were against it as it did not answer key issues that were making work difficult.
On Thursday, the labor unions and the railroad corporations in the US came to a ‘tentative agreement’. They reached it after 20 hours of protracted negotiations mediated by Marty Walksh, the Labor Secretary. They narrowly escaped a rail strike with the ability to bring havoc to supply chains and disrupt the economy of the nation. Failing to reach an agreement by Friday would lead to the first nationwide rail strike since 1992.
More on the current happenings
As per the new agreement, workers will get an immediate 14 percent rise. Additionally, it will lead to a total rise of 24 percent over the next five years. They will also receive an annual bonus of $5,000 while their health care deductibles and co-pays remain the same. Chief demands by unions such as extra paid leave and medical care-related leaves were met. (Alprazolam)
US President Joe Biden called it “a win for tens of thousands of rail workers who worked tirelessly through the pandemic”. “These rail workers will get better pay, improved working conditions, and peace of mind around their healthcare costs: all hard-earned. 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,” he added.