Biden Head-Knocking Leads to Tentative Sweet Deal for Rail Unions


Presidents don’t need labor headaches, especially when they involve critical infrastructure such as railroads. Joe Biden requested that the two sides meet in the office of Secretary of Labor Marty Walsh to negotiate on Wednesday as a result of a potentially disastrous and politically damaging rail strike.

Harry Truman tried this method of persuasion during 1949’s steel strike. He locked both sides’ negotiators in a room and didn’t let them out until they had made a deal.

It was a slow process. Biden called in the meeting at 9:59 p.m. and it was over. A tentative labor agreement was reached just hours later.


Biden stated that the tentative agreement reached tonight was an important win for America’s economy and people. It is a win for the tens of thousands of rail workers who worked tirelessly during the pandemic in order to make sure that America’s communities and families received their essential goods.

Although the White House was in negotiations with railroad workers’ unions for several months, negotiations were stopped over unpaid sick leave.

The writing was on the Wall once Biden became involved. The unions were a bandit, not surprising.

According to the Association of American Railroads, the new contracts offer rail workers a 24% wage rise over the five-year period 2020-2024. They also provide an immediate payout of $11,000 once ratified. All tentative agreements must be ratified by the union members.

The sugar was apparently obtained by the union, while the vinegar was likely acquired by the companies. “Nice company you got there, pal. It would be a shame if your books were rediscovered by the SEC.

Biden, who called himself the most union-friendly President in history and criticized companies for making “excessive” profit, praised a deal that would provide workers with “better wages, better working conditions and peace of heart about their health care costs.”

The Fed’s inflation-fighting rate hikes won’t be affected by the Fed’s decision to raise transportation costs during an inflationary period. Biden may have solved his immediate problem, but what will inflation look like in a year? The president’s intrusions in the labor-management dynamic are always good for the union, but not for the average consumer.

It will likely be worse for average Americans as more of this agreement is made public.