President Biden’s Presidential Emergency Board (PEB) issued its report outlining recommended terms to resolve the ongoing rail labor negotiations. The proposal would provide immediate pay increases and an average employee payout of more than $11,000 upon ratification.
“President Biden’s PEB issued recommendations that should set the framework for a negotiated agreement between railroads and unions,” said AAR President and CEO Ian Jefferies. “The recommendations would provide 24% compounded wage increases by 2024, with 14.1% of those increases effective immediately, along with additional service recognition bonuses totaling $5,000 over the course of the contract. An agreement based on these terms would lead to the largest general wage increase in nearly 40 years.
“While the Biden PEB’s recommendations markedly exceed the rail carriers’ proposal, they provide a useful basis to reach a resolution. In the interests of all rail stakeholders, now is the time for railroads and their unions to reach a contract. The industry is prepared to propose agreements based on the PEB’s recommendations to provide our employees with long overdue pay increases and avert rail service interruptions.”
