There will be no strikes

US President Joe Biden on Friday signed into law legislation approved by both chambers of the US Congress that would prevent railway workers from going on strike.

The initiative would approve a tentative agreement between unions and employers that would prevent a strike. As Biden noted at the signing ceremony, the document would "help the country avoid what no doubt could have turned into an economic disaster".

"Thanks to the bill passed by Congress, we have saved the country from this disaster. At the same time, we secured a historic 24% wage increase for industry workers over the next five years, improved working conditions and workers' peace of mind about health care," Joe Biden said.

He also noted that the resolution approved by Congress did not include a paid sick leave clause. "We still have a lot of work to do to eventually ensure paid sick leave, not just for railroad workers, but for all workers in America. This fight is not over," Biden added.

It is worth noting that SMART, one of the largest unions of American railroad workers, had previously voted against a tentative agreement with industry companies brokered by the Biden administration in September.

The US rail industry was facing its first strike in almost three decades. The unions demanded better working conditions and higher wages. They said working conditions on the rail lines did not adequately take into account the interests of workers.

It was also previously reported that the strike could start in December. It would, among other things, seriously hamper passenger and freight transport in the country.

The US Congress has the right under US law to impose an agreement on the parties if this is necessary to prevent disruption to the country's railways.

Since January 2020, the country's largest railway companies and its 12 railway unions have been negotiating labour contracts. These unions collectively represent around 115,000 workers at the US freight railway companies BNSF, CSX, Norfolk Southern, Kansas City Southern and Union Pacific.

Operating margins for the five largest US railways reached 41% in 2021, up from 29% 10 years ago, according to Bloomberg. During the first three quarters of 2022, the rail industry earned a record $21.2 billion in profits, according to a joint statement from a group of Democratic senators.