with recommending a path out of the fractious contract negotiations between the large U.S. railroads and the unions representing their workers has laid out a plan splitting the difference between the two sides.
The plan is not binding but sets the stage for a new round of negotiations over the next 30 days. If the two sides can't come to an agreement by that time, a strike or lockout could take place.The sides are represented by a coalition of 12 unions representing more than 100,000 railroad workers, who sought a 28% increase in pay and the National Carriers’ Conference Committee of the National Railway Labor Conference, which proposed a 16% increase plus a one-time $1,000 bonus.
CSX — which has been on a push to grow its workforce — has acknowledged that the long-running negotiations has created challenges. Railroad profits have increased 676% since 2004 to $22.5 billion in 2021, according to the report. Morningstar projects a 36.6% increase in future earnings for railroads from 2021 to 2024.
"Although the recommended wage terms significantly exceed those proposed by the carriers in this round and are far above those contained in prior rail labor settlements, it is in the best interests of all stakeholders – including customers, employees, and the public – for the railroads and rail labor organizations to settle this dispute and prevent service disruptions," the NCCC said.
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