The Presidential Emergency Board has released it’s report to the White House. The group was tasked with finding a solution to the labor dispute between Class I railroads and the labor unions. The board offered a handful of recommendation. Topping the list was a bump in salaries for rail workers.
National Grain and Feed Association officials called the 24% wage increase over five years a fair compromise. Max Fisher, is their Chief Economist, “You may be asking, Where does that stand with respect to what were the two sides we’re at. So the rail carriers were at 17% is what they were offering. And the real labor, what they were requesting was 31%. So 24% is right in between those two figures.
The PEB also suggested the railroad pay a $1000 service recognition bonus annually verses the $1000 signing bonus they had proposed. Plus an increase in health benefits, additional personal days and changes in how travel expenditures are reimbursed.
Mike Steenhoek, Executive Director for the Soy Transportation Coalition says the recommendations aren’t binding and the parties have 30-days to accept or reject them. During that time, the labor unions are prevented from going on strike. He says, “So around the middle of September there’s going to be a decision made by those 2 parties and if they don’t make the right decision, it could really wreak havoc when it comes to agriculture because that’s the eve of our harvest.”
The earliest possible date a strike could take place is September 16 and Steenhoek says they’re hopeful the recommendations will result in productive negotiations between railroads and rail workers to avoid any disruptions. He says, “We need to have our supply chain operating on all cylinders that particularly includes our railroad industry. If we don’t it’s going to be one more barrier to profitability for farmers in the U.S.
He says the lack of reliable rail service has been an issue for months now and the labor disputes have only added to the problem. So agriculture needs a resolution.
If no agreement is reached during the next 30 days, Congress can step in and mandate the PEB recommendations or some other settlement. Congress could also impose additional cooling off periods to avert a strike.
