Railroads and Unions Ink Tentative Labor Agreement, Averting Work Stoppage

The U.S. Class-I railroads and two remaining union holdouts struck a tentative labor agreement, averting what seemed to be an imminent strike. Recall that last month a White House-appointed Presidential Emergency Board, or PEB, put forth a nonbinding proposal, which split the difference between both sides' proposals down the middle. Until the Sept. 14 bargaining session, the two largest (of 12) railroad unions had yet to agree to a settlement. We understand the finalized agreement largely reflects the PEB's proposal, with the addition of a few sweeteners related to time off. The agreement will now enter the ratification process (approval from the rank and file), and during that time the unions have agreed not to strike.