WASHINGTON: US rail companies and unions have reached a "tentative" deal to avert a major strike over the weekend, US President Joe Biden said in a statement on Thursday. "The tentative agreement reached tonight is an important win for our economy and the American people," the statement on the White House website said. "These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned," it added.

The strike had threatened to disrupt travel and supply chains two months before crucial midterm elections. Pressure had been growing on both sides to reach a deal, with national rail operator Amtrak canceling passenger routes in anticipation of disruption as farmers and retailers warned of supply chain chaos.

The announcement came after freight railroad companies and two unions representing mainly train conductors had been called to a meeting at the Labor Department in Washington on Wednesday in an effort to avert a strike on Friday at midnight. "I thank the unions and rail companies for negotiating in good faith and reaching a tentative agreement that will keep our critical rail system working and avoid disruption of our economy," Biden said.

Biden regularly expresses strong support for workers but is also struggling to avoid further economic damage ahead of midterm congressional elections in early November. Voters already are worried about soaring prices in the post-pandemic economy, where supply chain issues have been a constant scourge and annual inflation has surged to a 40-year high. The Association of American Railroads had warned that a strike would bring 7,000 trains to a halt, costing $2 billion a day.

'No real substitute'

"Moments ago, following more than 20 consecutive hours of negotiations at @USDOL , the rail companies and union negotiators came to a tentative agreement that balances the needs of workers, businesses, and our nation's economy," tweeted US Secretary of Labor Marty Walsh.

Biden in July appointed an arbitration panel to facilitate the discussions and head off a work stoppage. Farmers and retailers had warned that a strike would hit US supply chains already battered by the COVID-19 pandemic.

"There is no real substitute for moving agricultural goods," American Farm Bureau Federation President Zippy Duvall said Wednesday. The National Retail Federation called freight rail "critical to the retail supply chain." "The timing coincides directly with peak shipping season for the winter holidays, and a rail strike at this juncture would be just one more significant, inflationary shock to an economy that is already reeling," warned NRF CEO Matthew Shay ahead of Biden's announcement.

Any strike would be bad news for Biden, who regularly expresses strong support for workers but is also struggling to avoid further economic damage ahead of key midterm congressional elections in early November. Voters already are worried about soaring prices in the post-pandemic economy, where supply chain issues have been a constant scourge and annual inflation has surged to a 40-year high.

"The president and members of cabinet have been in touch with both unions and companies involved multiple times in order to try to avert a rail shutdown," White House spokeswoman Karine Jean-Pierre said in a briefing Wednesday.

"All parties need to stay at the table, bargain in good faith to resolve outstanding issues and come to an agreement," she said. "A shutdown of our freight system rail system is an unacceptable outcome for our economy of the American people, and all parties must work to avoid just that." - AFP