A report by a Presidential Emergency Board tasked with finding a compromise solution to the stalemate in contract negotiations between major rail freight carriers and the 115,000-member labor union recommended pay increases and back-payments for workers, Reuters reports.
The two sides now have 30 days to review the 119-page report. If both sides agree to the terms, the contract negotiations move closer to closing because the major issues are worked out. If one side objects, Congress can intervene in the negotiations, which is something neither side typically wants, but may be necessary to prevent a work stoppage or lock-out, which would exacerbate existing supply chain problems.
The report recommends issuing retroactive raises for 2020 of 3.0% and 3.5% for 2021, plus annual raises of 4% to 7% through 2024. They also propose granting an additional paid holiday every year, as well as reinstituting $1,000 annual bonuses paid back to 2020 and through 2024.