How might the rail strike affect Americans?
3:05
(CNN) --
President Joe Biden announced Thursday that unions and railroad companies have reached a tentative agreement to avoid a strike before a critical deadline.
Biden said it was "a victory for tens of thousands of rail workers who have worked tirelessly during the pandemic" as well as "railroad companies who will be able to retain and hire more workers."
This is how a US freight train strike would affect commuters
"Moments ago, after 20 straight hours of negotiations at the Department of Labor, railroad companies and union negotiators reached a tentative agreement that balances the needs of workers, businesses and our nation's economy," said a Department of Labor spokesman.
"Secretary (Marty) Walsh and the Biden Administration applaud all parties for reaching this hard-fought and mutually beneficial agreement. Our rail system is an integral part of our supply chain and a disruption would have had a catastrophic impact on industries, travelers and families across the country,” he added.
Negotiations to avert the rail strike dragged on for 20 hours and an agreement was reached around 5 am ET, according to a source familiar with the matter.
Officials call this a "tentative agreement" only because the agreement now goes back to the unions for a vote, and as part of the tentative agreement, both sides agree to a "post-ratification reflection period" of several weeks.
advertising
The source also said Biden "made a crucial call" to Labor Secretary Marty Walsh and negotiators at 9 p.m. Wednesday.
amtrak