Biden declares tentative rail agreement a "win"
- Emily Peck, author of Axios Markets

President Biden shakes hands with Secretary of Labor Marty Walsh after speaking about the railway labor agreement on Sept. 15. Also pictured (left to right): Deputy Secretary of Labor Julie Su, OMB Made in America Director Celeste Drake, and Director of the National Economic Council Brian Deese. Photo: Jim Watson/AFP via Getty Images
Speaking in the Rose Garden on Thursday, President Biden thanked the negotiators who brokered a last-minute deal averting a railroad strike that would have crippled the nation's still recovering supply chains.
Why it matters: Biden's handling of the negotiations between the rail companies and their unions marked a pivotal moment for the administration, which had to balance its pro-labor stance with the need to avoid an economically disastrous strike ahead of the midterms.
- "Together we reached an agreement that will keep our critical rail system working and avoid disruptions of our economy."
- "Today is a win," he said. "This agreement is validation of what I've always believed — unions and management can work together."
- As he returned to the Oval Office, he answered a shouted question about grocery prices being up more than 13 percent this year. "Rail's moving and it's not going to go up," Biden replied.
Catch up quick: Biden himself got involved in the talks, making a "crucial call" to the negotiating parties last night at around 9 p.m., according to a source familiar with the situation.
- Negotiations in Washington went on for 20 straight hours on Wednesday, the president said. "The negotiators here today I don't think they've been to bed yet."
- The key sticking point for the holdout unions had been sick leave, something that reportedly struck a nerve with the president, the Washington Post reports.
- "Biden had grown animated in recent days about the lack of scheduling flexibility for workers, expressing a mixture of confusion and anger that management was refusing to budge on that point," the paper reports.
What's next: The 12 railroad worker unions need to vote to approve the tentative deal, which includes a provision for some unpaid time off for workers who need routine or preventative medical care, according to a statement from one of the unions.
- The deal sets an important precedent for these unions, which have historically not bargained for leave at this level of negotiations.
Yes, but: The deal does not eliminate a scheduling system put in place by the railroad companies, called Hi-Viz, which workers have said is particularly grueling. And the agreement only provides union members with a single paid sick day.