According to Biden, a temporary railroad labour agreement has been reached, preventing the strike.
President Joe Biden thinks that the middle class is created by unions.
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The strike by railroad workers might hurt the economy before the midterm elections.
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As a veteran of the labour movement, he was forced into the peculiar position of spying on the benefits of unionisation in Detroit.
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Members of his administration tried their utmost to keep the discussions between railways and unionised employees going in Washington in order to prevent the shutdown.
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However, the negotiations were successful after a protracted night, Biden declared that the parties had achieved a tentative deal to avert a shutdown
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The Democratic president hailed the deal in a statement as avoiding the shutdown and a victory for all sides.
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"These railroad workers will find better pay, better working conditions and peace of mind around health care costs: all the hard work," Biden said.