The National Carriers Conference Committee (NCCC), which represents railroads including Union Pacific, Berkshire Hathaway-owned BNSF, and CSX, has been in contract talks with unions representing 115,000 workers for more than two years. Biden’s Presidential Emergency Board (PEB) released its findings to interested parties on Tuesday.
“The railways are ready to meet with unions and reach agreements based on the PEB report without delay,” the NCCC said.
Although the wage terms recommended by the board far exceed those offered by carriers in this round, the NCCC said, “It is in the interest of all interested parties – including customers, employees and the public – that the railways and railway labor organizations are resolving this dispute and preventing service disruptions.”
The NCCC said the council’s recommendation would increase wages by 24% over the five-year period from 2020 to 2024, with a 14.1% wage increase taking effect immediately.
The recommendations also include five annual lump sum payments of $1,000, adjustments to healthcare premiums and limited changes to work rules. A portion of the wage increases and lump sum payments would be retroactive, translating to more than $11,000 on average in upfront payments to employees.
If implemented, the average salary of railway workers would reach about $110,000 a year by the end of the agreement. Factoring in health care, retirement, and other benefits, total employee compensation would average over $150,000 a year.
Shares of Union Pacific and CSX were both down 1.2% on Wednesday morning.