The agreement now heads to union members for a ratification vote, which is a standard procedure in labor talks. While the vote is tallied, workers have agreed not to strike.
Amazon will spend $450 million to raise wages and benefits for members of its Delivery Service Partners network, a program of small businesses that drive fleets of Amazon-branded delivery vans.
A strike — the first since 1992 —
could cost the U.S. economy $2bn a day, according to a recently issued Association of American Railroads report, and workers say they will quit an industry already facing staff shortages.
The White House urged labor unions and freight-rail operators to come to an agreement in contract talks, with mounting concern that a strike as soon as Sept. 16 could damage the U.S. economy and Democrats’ midterm election prospects.
Dock workers at Felixstowe, Britain’s largest container port, rejected a pay deal imposed by management, paving the way for a new round of industrial action and disruption to vital trade flows.
Some of the U.K.'s biggest strikes have been called off after the death of Queen Elizabeth II, and the U.K. Rail Delivery Group said train timetables would be normal now that strikes were not going ahead.
Negotiators from the two sides are slated to again meet with the Mediation Board Sept. 8 and Sept. 9, in an effort to avert a strike or lockout on Sept. 16, when the current 30-day cooling off period ends.
MWPVL International Inc., which tracks Amazon’s real-estate footprint, estimates the company has either shuttered or killed plans to open 42 facilities totaling almost 25 million square feet of usable space.