Article author:
Reuters
David Shepardson and Lisa Baertlein
WASHINGTON/LOS ANGELES — U.S. President Joe Biden's emergency committee said Tuesday that major freight railroads and labor unions would be on the rise in proposed annual salaries. There will be an increase of 4% to 7% by 2024, according to a report seen by Reuters, which is tasked with helping to end the contract negotiation stalemate.
The board also said in a 119-page report, due to be released as early as Wednesday, that rail workers were out of contract. It recommended a retroactive increase of 3.5% in 2016. Five annual $1,000 bonuses and additional paid vacation.
Negotiations between major freight rail lines, including BNSF and CSX owned by Union Pacific, Berkshire Hathaway, and trade unions representing 115,000 workers have been going on for more than two years. is also continuing.
The railroad company transports a variety of items, from Amazon.com Inc's parcels to fuel oil and soybeans. Lockouts and strikes could drive up the prices of essentials and upend battered U.S. supply chains ahead of the midterm elections that will determine whether Biden's Democrats gain a narrow control of the House and Senate.
The report's proposals represent a nominal wage increase of 22% over five years, the report said. The Board's purpose is to "act as an honest broker and to recommend fair and reasonable terms of agreement."
Other recommendations include monthly Eliminate employee health premium caps equal to 15% of total plan cost to provide covered benefits and jointly rebid contracts to ensure current costs are reduced This includes ensuring that Competitiveness.
Earlier, the White House expressed optimism about reaching an agreement. We are optimistic that it will provide an excellent framework," the official said, adding that the recommendations were delivered to the White House and the parties.
In his July, Biden appointed a three-member presidential emergency committee to mitigate transportation-related disruptions that are causing inflation and threatening food and fuel supplies.
For 30 days after the publication of the Presidential Emergency Committee (PEB) report, the business suspension is prohibited, giving both parties time to reach a voluntary resolution. Congress may intervene if employers or unions reject the Board's recommendations.
"It is in the national interest for the parties to reach a quick resolution to avoid closing the railroad," a senior White House official said.
The unions and railroad groups involved in the negotiations did not immediately respond to requests for comment.
Rail services at major US ports have recently suffered from growing supply chain swells and labor and equipment shortages.
Union Pacific said in a statement, "It is in the best interests of all stakeholders to reach an agreement that rightfully provides pay increases to employees and prevents disruption to rail service. It will be profitable," he said. (Reporting by David Shepardson, Washington and Lisa Baertlein, Los Angeles; Editing by Chris Reese, Matthew Lewis, Aurora Ellis, Richard Chang)
