Federal officials have announced a tentative agreement between several major railroads and unions representing workers, avoiding service interruptions that had been anticipated Friday for Caltrain between Gilroy and San Jose.
Caltrain officials had announced Tuesday that a strike would mean suspending service between the two South Bay cities because the tracks used by commuter line are owned by Union Pacific.
The labor dispute — the tentative resolution to which union members must vote to approve in the coming days — impacts tens of thousands of railroad employees across the nation and threatened a potentially devastating blow to the economy following the COVID-19 pandemic and months of supply chain disruptions. A provision of the tentative deal includes an agreement that workers will not strike while voting is tallied.
While details on the agreement were not released Thursday, the U.S. Department of Labor issued the following statement after rail companies and union negotiators reached a tentative agreement:
“Moments ago, following 20 consecutive hours of negotiations at the Department of Labor, rail companies and union negotiators came to a tentative agreement that balances the needs of workers, businesses and our nation’s economy. Secretary [Marty] Walsh and the Biden Administration applauds all parties for reaching this hard-fought, mutually beneficial deal. Our rail system is integral to our supply chain, and a disruption would have had catastrophic impacts on industries, travelers and families across the country.”