§1103 — Title 45 Railroads | U.S. Code

Summary

Give Conrail a chance to become profitable by meeting several goals. Nonagreement employees (those not under a collective bargaining deal) must give up pay raises and benefits in the same proportion as employees covered by new labor agreements, with yearly inflation adjustments. After May 1, 1981, the number of nonagreement employees must be cut in proportion to any cuts in agreement employees, except for layoffs under the termination program in section 797a. Conrail must be able to get materials, services, credit, and normal financing so freight can move smoothly. Conrail must also use revenue opportunities under the Staggers Rail Act of 1980 and subtitle IV of title 49. Conrail must make labor deals that lower its costs by $200,000,000 a year starting April 1, 1981, with yearly inflation adjustments. Those deals can cut wage increases and change common fringe benefits like vacations and holidays. First-year cuts may be delayed, but the average savings must be at least $200,000,000 per year over the first three one-year periods starting April 1, 1981. The savings are measured by subtracting the cost of these agreements from the cost that would come from a national agreement, or until a national agreement exists, from the cost the United States Railway Association estimates.

Title 45, §1103

Railroads — Source: USLM XML via OLRC

It is the goal of this subtitle to provide Conrail the opportunity to become profitable through the achievement of the following objectives:

(1)(A)Employees who are not subject to collective bargaining agreements (hereafter in this section referred to as “nonagreement personnel”) should forego wage increases and benefits in an amount proportionately equivalent to the amount foregone by agreement employees pursuant to paragraph (4) of this section, adjusted annually to reflect inflation.

(B)After May 1, 1981, the number of nonagreement personnel should be reduced proportionately to any reduction in agreement employees (excluding reductions pursuant to the termination program under section 797a of this title).

(2)To facilitate the orderly movement of goods in interstate commerce, materials and services should continue to be available to Conrail, under normal business practices, including the provision of credit and normal financing arrangements.

(3)Conrail should utilize the revenue opportunities available to it under the Staggers Rail Act of 1980 and subtitle IV of title 49.

(4)(A)Conrail should enter into collective bargaining agreements with its employees which would reduce Conrail’s costs in an amount equal to $200,000,000 a year, beginning April 1, 1981, adjusted annually to reflect inflation.

(B)Agreements under this subparagraph may provide for reductions in wage increases and for changes in fringe benefits common to agreement employees, including vacations and holidays.

(C)The cost reductions required under this subparagraph in the first year of the agreement may be deferred, but the aggregate cost reductions should be no less than an average of $200,000,000 per year for each of the first three one-year periods beginning April 1, 1981.

(D)The amount of cost reductions provided under this paragraph shall be calculated by subtracting the cost of an agreement entered into under this paragraph from (i) the cost that would otherwise result from the application of the national agreement reached by railroad industry and its employees, or (ii) until such national agreement is reached, the cost which the United States Railway Association estimates would result from the application of such a national agreement.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This subtitle, referred to in text, is subtitle E (§§ 1131–1169) of title XI of Pub. L. 97–35, Aug. 13, 1981, 95 Stat. 643, known as the Northeast Rail Service Act of 1981. For complete classification of this subtitle to the Code, see

Short Title

note set out under section 1101 of this title and Tables. The Staggers Rail Act of 1980, referred to in par. (3), is Pub. L. 96–448, Oct. 14, 1980, 94 Stat. 1895. For complete classification of this Act to the Code, see

Short Title

of 1980 Amendment note set out under section 10101 of Title 49, Transportation, and Tables.

Statutory Notes and Related Subsidiaries

Abolition of United States Railway Association and

Transfer of Functions

and Securities See section 1341 of this title.

§1103 Goals and objectives

Summary

Title 45, §1103

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Short Title

Statutory Notes and Related Subsidiaries

Transfer of Functions

Citations & Metadata