(Reuters) -Major U.S. railroads and unions secured a tentative deal after 20 hours of intense talks brokered by the Biden administration to avert a rail shutdown that could have hit food and fuel supplies nationwide.
Shares of Union Pacific Corp and CSX Corp were up about 3% before the bell.
Following are some reactions to the tentative deal:
U.S. HOUSE SPEAKER NANCY PELOSI
“The report of a tentative agreement between railroads represented by labor unions and the National Carriers’ Conference Committee is good news for our nation’s economy, our security and the well-being of the American people. I commend President Biden for his personal involvement and insistence on resolution and especially Labor Secretary Marty Walsh for leading the negotiations.”
NATIONAL RETAIL FEDERATION
“We are relieved and cautiously optimistic that this devastating nationwide rail strike has been averted. We appreciate the Biden administration’s intervention on behalf of the businesses and consumers who would have been impacted at a time when high inflation and economic uncertainty are challenging consumer budgets and putting business resiliency at risk.”
“We hope railway workers will accept the new terms of the proposed contract and the railway system can continue to operate on behalf of the millions of hardworking Americans who rely on it for their jobs and the economic security of our country.”
MIKE STEENHOEK, EXECUTIVE DIRECTOR, SOY TRANSPORTATION COALITION
“We are extremely pleased both sides were able to arrive at an agreement. Our nation’s railroads are integral to the success of the American farmer. Without cost-effective, reliable rail service, so much of what farmers produce will never connect with our domestic and international customers.”
“American farmers are responding to the challenges of global food insecurity. We need our nation’s railroads to be a reliable partner in this effort. A strike, lockout, or significant slowdown would have imposed significant harm on agriculture – particularly on the eve of harvest.”
IPEK OZKARDESKAYA, SENIOR ANALYST AT SWISSQUOTE BANK
“Avoiding a strike is good news for equities, there won’t be additional pressure on supply chains, and inflation expectations.”
“It’s great news, it’s one less issue to worry about for investors. Obviously there is no good time for a strike. But this week is really a particularly bad week!”
JEREMY FERGUSON, PRESIDENT SMART TRANSPORTATION DIVISION AND DENNIS PIERCE, PRESIDENT BROTHERHOOD OF LOCOMOTIVE ENGINEERS AND TRAINMEN:
“The solidarity shown by our members, essential workers to this economy, who keep America’s freight trains moving, made the difference in our obtaining an agreement with provisions that exceeded the recommendations of the Presidential Emergency Board. We listened when our members told us that a final agreement would require improvements to our member’s quality of life as well as economic gains.”
“Most importantly, for the first time ever, the agreement provides our members with the ability to take time away from work to attend routine and preventative medical, as well as exemptions from attendance policies for hospitalizations and surgical procedures.”
(Compiled by Kannaki Deka, Priyamvada C and Bansari Mayur Kamdar in Bengaluru; Edited by Shounak Dasgupta and Sriraj Kalluvila)
