Plan to get railroad contract dispute moving involves 24% raises

Date:

A plan to help stalled rail contract negotiations includes a proposal for raises and bonuses.

The plan was put forward by a board of directors appointed by President Biden in an attempt to avert a strike.

The proposal calls for 115,000 rail workers to receive a 24% pay raise and thousands of dollars in bonuses.

Railways and unions will take those recommendations into account in a new round of negotiations in the coming month.

A BNSF freight train with 76 container trucks and FedEx freight trailers runs from Seattle to the points east. ((Photo by William Campbell/Getty Images) / Getty Images)

Federal law would allow a strike or lockout if the two sides can’t agree on a new deal by mid-September.

UNION PACIFIC SECOND QUARTER PROFIT IMPROVES TO REDUCE DELAYS IN RAIL DELIVERY

Congress is expected to intervene at that point to keep the supply chain moving.

A railroad strike could have devastating consequences for companies that depend on Union Pacific, BNSF, Norfolk Southern, CSX and other major freight railroads to supply raw materials and ship their products.

Union Pacific is one of the railroads involved in talks

A Union Pacific train passes through Union, Neb. ((AP Photo/Nati Harnik, File) / AP Newsroom)

The report was distributed to the parties on Tuesday and The Associated Press got a copy of it, but the railroads and unions did not immediately comment on details.

The railroads participated in the presidential emergency council process a month ago, far apart from the 12 participating unions.

BIDEN CELEBRATES 50 YEARS OF AMTRAK WITH RAIL EXTENSION PLANS

A total of 12 unions are involved and have asked for a 31% pay increase over the five years, while the railways offered only 17% in compound pay increases.

A BNSF train pulls from the yard

FILE – An employee of the BNSF rail terminal tracks the departure of a freight train on June 15, 2021 in Galesburg, Illinois. ((AP Photo/Shafkat Anowar, File) / AP Newsroom)

The unions are also concerned about rising healthcare costs in a new contract.

In addition to the pay raise and bonuses, the report recommends adding an extra paid day off each year and keeping the same health insurance plan, but letting employees bear a larger share of the costs.

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Rail workers have not received a pay rise since 2019.

The Associated Press contributed to this report.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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