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.
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.”
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.
“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.
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.
International
Paraguay summons Brazilian ambassador over Itaipú espionage scandal
Paraguay summoned the Brazilian ambassador in Asunción on Tuesday to demand “explanations” and called its own representative in Brasília for consultations following Brazil’s acknowledgment of an espionage operation. The Brazilian government, led by President Luiz Inácio Lula da Silva, attributed the operation to the previous administration.
The surveillance effort aimed to uncover Paraguay’s position in now-suspended negotiations with Brazil regarding the pricing of electricity from the binational Itaipú hydroelectric plant, according to reports in the Brazilian press.
The Brazilian government “categorically denied any involvement in the intelligence operation,” stating in a Foreign Ministry communiqué on Monday that the espionage was carried out under former President Jair Bolsonaro’s administration (2019-2023).
“The operation was authorized by the previous government in June 2022 and was annulled by the interim director of the (state intelligence agency) ABIN on March 27, 2023, as soon as the current administration became aware of it,” Brazil’s government asserted.
Paraguay’s Foreign Minister Rubén Ramírez announced that Brazilian Ambassador José Antonio Marcondes de Carvalho was summoned “to provide detailed explanations” regarding the operation. Additionally, Paraguay recalled its diplomatic representative in Brasília “to report on aspects related to the intelligence activity conducted by Brazil regarding Paraguay’s government affairs.”
International
Elon Musk to step down as government advisor, per Trump insiders
President Donald Trump has informed his inner circle that Elon Musk will be stepping down from his role as a government advisor, according to a report by Politico today.
Citing three individuals close to Trump, Politico states that the president is pleased with Musk’s leadership at the Department of Government Efficiency (DOGE), where he has implemented significant budget cuts. However, both have agreed that it is time for Musk to return to his businesses and support Trump from a different position outside the government.
A senior administration official told Politico that Musk will likely maintain an informal advisory role and continue to be an occasional visitor to the White House. Another source warned that anyone thinking Musk will completely disappear from Trump’s circle is “deluding themselves.”
According to the sources, this transition is expected to coincide with the end of Musk’s tenure as a “special government employee,” a temporary status that exempts him from certain ethics and conflict-of-interest regulations. This 130-day period is set to expire in late May or early June.
International
Milei vows to make Argentina so strong that Falkland Islanders “choose” to join
Argentine President Javier Milei reaffirmed his country’s claim over the Falkland Islands (known as the Islas Malvinas in Argentina) and praised the role of the nation’s armed forces during a ceremony marking the “Veterans and Fallen Soldiers of the Malvinas War Day,” commemorating 43 years since the 1982 conflict with the United Kingdom.
Argentina continues to assert sovereignty over the islands, arguing that Britain unlawfully seized them in 1833.
“If sovereignty over the Malvinas is the issue, we have always made it clear that the most important vote is the one cast with one’s feet. We hope that one day, the Malvinas residents will choose to vote with their feet and join us,” Milei stated.
“That is why we aim to become a global power—so much so that they would prefer to be Argentine, making deterrence or persuasion unnecessary. This is why we have embarked on a path of liberation, working to make Argentina the freest country in the world and once again the nation with the highest GDP per capita on the planet,” he added.
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