Amtrak is scrambling to restore train services it canceled before unions reached a last-minute deal that averted a crippling rail strike

• Amtrak is restoring canceled train services after unions and freight railroads reached a pay deal.
• Amtrak had canceled long-distance trains from Thursday, over concerns about a potential strike.

Amtrak is scrambling to restore train services it canceled before unions struck a last-minute deal with freight rail firms that averted a potentially crippling rail strike.

"Amtrak is working to quickly restore canceled trains and notify impacted customers," the company said on its website Thursday. The news followed an announcement by the White House that union representatives and rail companies had reached a tentative agreement over pay and working conditions.

On Wednesday, Amtrak preemptively canceled many state-supported train services, in addition to long-distance routes nixed on Tuesday. It did so over concerns that the simmering labor dispute could hamper its ability to operate.

The company is not directly involved in the dispute, but its services run on nearly 21,000 miles of track throughout the Midwest and Western US, much of which is managed by freight railroad companies involved in the negotiations.

Amtrak did not immediately respond to Insider's request for further comment, which came outside of standard business hours.

Railroad executives had until Friday to reach terms with groups from two unions, the Brotherhood of Locomotive Engineers & Trainmen and the International Association of Sheet Metal Air, Rail & Transportation Workers, collectively representing almost 60,000 railroad workers, or risk strike action.

The US Chamber of Commerce said that the potential strike threatened "national economic disaster" by stretching supply chains and slowing down the delivery of goods and fuel critical for US production.

The shutdown could have cut US economic output by as much as $2 billion a day, according to estimates by the Association of American Railroads.

The labor agreement, struck after 20 hours of intense talks brokered by the US labor department, still needs to be voted through by union members but it has averted the immediate risk of strike action.

"This tentative agreement will keep our trains moving, stations bustling, and employees proudly serving customers as we move them across this great country, stimulating local economies in more than 500 communities we serve," Amtrak CEO Stephen Gardner said in a statement Thursday.