International

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

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

U.S. Senate Rejects Budget, Bringing Government Closer to Shutdown Amid DHS Dispute

The U.S. Senate voted on Thursday against a budget proposal in a move aimed at pressuring changes at the Department of Homeland Security (DHS), following the killing of two civilians during a deployment of immigration agents in Minneapolis.

All Senate Democrats and seven Republican lawmakers voted against the bill, which requires 60 votes to advance, pushing the country closer to a partial government shutdown that would cut funding for several agencies, including the Pentagon and the Department of Health.

The rejection came as Senate leaders and the White House continue negotiations on a separate funding package for DHS that would allow reforms to the agency. Proposed measures include banning Immigration and Customs Enforcement (ICE) agents from wearing face coverings and requiring them to use body-worn cameras during operations.

The vote took place just hours after President Donald Trump said he was “close” to reaching an agreement with Democrats and did not believe the federal government would face another shutdown, following last year’s record stoppage.

“I don’t think the Democrats want a shutdown either, so we’ll work in a bipartisan way to avoid it. Hopefully, there will be no government shutdown. We’re working on that right now,” Trump said during a Cabinet meeting at the White House.

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International

Trump Says Putin Agreed to One-Week Halt in Attacks on Ukraine Amid Extreme Cold

U.S. President Donald Trump said on Thursday that he secured a commitment from Russian President Vladimir Putinto halt attacks against Ukraine for one week, citing extreme weather conditions affecting the region.

“Because of the extreme cold (…) I personally asked Putin not to attack Kyiv or other cities and towns for a week. And he agreed. He was very pleasant,” Trump said during a Cabinet meeting broadcast by the White House.

Trump acknowledged that several advisers had questioned the decision to make the call.
“A lot of people told me not to waste the call because they wouldn’t agree. And he accepted. And we’re very happy they did, because they don’t need missiles hitting their towns and cities,” the president said.

According to Trump, Ukrainian authorities reacted with surprise to the announcement but welcomed the possibility of a temporary ceasefire.
“It’s extraordinarily cold, record cold (…) They say they’ve never experienced cold like this,” he added.

Ukrainian President Volodymyr Zelensky later commented on the announcement, expressing hope that the agreement would be honored.

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International

Storm Kristin Kills Five in Portugal, Leaves Nearly 500,000 Without Power

Storm Kristin, which battered Portugal with heavy rain and strong winds early Wednesday, has left at least five people dead, while nearly half a million residents remained without electricity as of Thursday, according to updated figures from authorities.

The revised death toll was confirmed to AFP by a spokesperson for the National Emergency and Civil Protection Authority (ANPEC). On Wednesday, the agency had reported four fatalities.

Meanwhile, E-Redes, the country’s electricity distribution network operator, said that around 450,000 customers were still without power, particularly in central Portugal.

Emergency services responded to approximately 1,500 incidents between midnight and 8:00 a.m. local time on Wednesday, as the storm caused widespread disruptions.

The Portuguese government described Kristin as an “extreme weather event” that inflicted significant damage across several regions of the country. At the height of the storm, as many as 850,000 households and institutions lost electricity during the early hours of Wednesday.

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Several municipalities ordered the closure of schools, many of which remained shut on Thursday due to ongoing adverse conditions.

Ricardo Costa, regional deputy commander of the Leiria Fire Brigade, said residents continue to seek assistance as rainfall persists.
“Even though the rain is not extremely intense, it is causing extensive damage to homes,” he noted.

In Figueira da Foz, a coastal city in central Portugal, strong winds toppled a giant Ferris wheel, underscoring the severity of the storm.