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US rail companies, unions reach ‘tentative’ deal to avert strike

Photo: Stefani Reynolds / AFP

AFP | by Julie CHABANAS / Sebastian Smith

A jubilant President Joe Biden announced a tentative deal Thursday to avoid a crippling strike by railroad unions following all-night talks as the clock ran down on threats to disrupt US supply chains in the run-up to midterm elections.

“It feels good!” Biden told a tired-looking group of negotiators invited into the Oval Office after their sleepless night. “They should be home in bed,” he said.

Biden, who was personally calling into the negotiations as late as 9:00 pm on Wednesday, issued a pre-dawn statement announcing the preliminary resolution, which allows for a 24 percent wage increase between 2020 and 2024, including an immediate payout.

At a hastily organized celebration in the Rose Garden, Biden called the agreement “a big win for America” and said the “dignity” of railroad workers had been honored.

The deal was a relief after worries that a Friday deadline would trigger nationwide stoppages, snarling critical supplies to an economy in the midst of a jittery recovery from the Covid-era shutdown.

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For Biden personally, a strike would have been politically damaging as he tries to steer his Democratic party’s uphill bid to hold on to Congress in November, with Republicans focusing heavily on high inflation.

Biden, in his initial statement, said “the hard work done to reach this tentative agreement means that our economy can avert the significant damage any shutdown would have brought.”

“These rail workers will get better pay, improved working conditions, and peace of mind around their health care costs: all hard-earned.”

The Association of American Railroads, which represents the nation’s freight railroads, welcomed the deal.

Major freight carrier Union Pacific said it “looks forward to the unions ratifying these agreements and working with employees as we focus on restoring supply chain fluidity.”

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All-nighter

In the West Wing, exhausted staffers recounted an all-nighter which saw cabinet secretaries huddle with union leaders and rail executives at the Labor Department building.

“There were 20 plus hours in negotiations. At no point did anyone ever get to go home,” a senior official told reporters.

At 9:00 pm Wednesday, Biden called in and “his message was we have to get agreement — a shutdown is unacceptable — and that they need to respond in good faith to each other.”

Agriculture Secretary Tom Vilsack and Transport Secretary Pete Buttigieg made calls “throughout the day and night” and at 2:00 am, Labor Secretary Marty Walsh “called the White House and said it looks like a deal is coming together,” the official said.

Final details were ironed out, one of the union boards was woken at 3:00 am and two hours later the deal was announced.

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“Failure was not an option,” the official said.

Inflation fears

Polls show voters are worried about soaring prices in the post-pandemic economy, where supply chain issues have been a constant scourge and annual inflation has surged to a 40-year high.

The Association of American Railroads had warned that a strike would bring 7,000 trains to a halt, costing $2 billion a day.

Farmers and retailers had warned that a strike would hit US supply chains already battered by the Covid-19 pandemic.

“There is no real substitute for moving agricultural goods,” warned American Farm Bureau Federation president Zippy Duvall.

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Recognizing the danger, Biden had appointed an arbitration panel back in July to facilitate the negotiations. Asked by reporters in the Rose Garden what Americans should do about rapidly rising food prices and other inflation, he said the railroad deal would bring relief.

“Rail’s moving and (inflation) is not going to go up,” Biden said.

Amtrak, the US rail passenger operator, which had announced plans to cancel long-distance train services if freight workers went on strike, said it would immediately get trains rolling again.

“Amtrak is working to quickly restore canceled trains and reaching out to impacted customers to accommodate on first available departures,” it said in a statement.

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International

Petro expresses concern over fatal shooting during mass protests in Lima

Colombian President Gustavo Petro voiced his “concern” on Thursday over recent events in Peru, following the death of a protester reportedly shot during a massive demonstration in Lima against the government and Congress.

“I must express my concern over the events in Peru. A young artist has been killed in citizens’ protests,” Petro wrote on X (formerly Twitter).

The Colombian leader also noted that in Peru, “a popularly elected president remains imprisoned without conviction,” referring to Pedro Castillo, who led the country from July 2021 to December 2022 until he was removed by Congress following a failed attempted coup.

“This is a blatant violation of the American Convention on Human Rights,” Petro stated, adding, “I hope Peru seeks social and political dialogue to legitimize its public institutions.”

On Wednesday, Peru experienced widespread protests in several cities, with the largest demonstration in Lima in recent years, driven by citizens’ concerns over corruption and public insecurity.

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During the capital’s mobilization, the Ombudsman’s Office confirmed the death of Eduardo Ruiz, 32, and reported clashes that left over 100 injured, including 78 police officers and 24 protesters, as well as ten arrests.

The Attorney General’s Office, investigating Ruiz’s death “in the context of serious human rights violations,” confirmed that the protester was shot.

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International

Peru’s interim president José Jerí refuses to resign after protester’s death in Lima

Peru’s interim president, José Jerí, stated Thursday that he has no intention of resigning from the post he assumed last Friday, following the removal of former president Dina Boluarte, despite growing unrest over the death of a protester during massive demonstrations in Lima on Wednesday.

“I will not resign,” Jerí declared outside the Government Palace in Lima, where he returned on foot after making a surprise visit to Congress headquarters alongside Prime Minister Ernesto Álvarez.

Earlier, after leaving the Legislative Palace, the president acknowledged that the country is going through “difficult times” and condemned what he described as “a small group attempting to impose an agenda different from the citizens’ expression of discontent.”

Jerí expressed condolences for the death of Eduardo Ruiz, a 32-year-old man who died during Wednesday’s protest against the government and Congress, amid growing anger over corruption and insecurity.

“We stand in solidarity with his family,” he said, without offering further details about the incident, which has sparked outrage among Peruvians.

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The president also described the demonstrations as “a legitimate civic expression” that later turned violent due to “certain groups seeking to provoke chaos by exploiting a peaceful citizen movement.”

“In a state governed by the rule of law, the rights of both demonstrators and security forces must be protected,” Jerí emphasized, adding that “as a result of that situation, this unfortunate death occurred outside the main area where the protest was taking place.”

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International

Mexican government prioritizes 191 communities after deadly floods

Mexican President Claudia Sheinbaum confirmed on Wednesday that the death toll from recent rains and floods across several central states has risen to 66, while the federal government has activated air bridges and prioritized assistance in 191 isolated communities.

“Unfortunately, 66 people have died, and 75 remain missing,” the president said during her morning press conference. She added that the official death toll will be updated later in a new report.

As of Tuesday, authorities had reported 64 fatalities. Sheinbaum also announced the creation of a public information center to centralize official data on the deceased, missing persons, damaged homes, and cut-off communities.

According to the president, the number of missing persons has decreased thanks to coordination with state authorities.

“Through calls to phone line 079, 103 people who had been reported missing have now been located,” she explained.

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Priority Municipalities

The president noted that the federal government has classified 191 communities as ‘priority’, a designation based mainly on the percentage of homes affected.

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