§1103 Goals and Objectives

Summary

Make Conrail profitable by requiring specific cost cuts, staff changes, and use of available revenue tools. Nonagreement employees must give up wage increases and benefits in the same proportion as employees covered by bargaining deals, with adjustments each year for inflation. After May 1, 1981, the number of nonagreement staff must be cut in line with any reductions in bargaining-covered employees, except for cuts under the termination program in section 797a. Keep materials, services, credit, and normal financing available so Conrail can move goods. Conrail must use revenue options in the Staggers Rail Act of 1980 and subtitle IV of title 49. Conrail must make labor agreements that lower its costs by $200,000,000 a year starting April 1, 1981, adjusted for inflation. Those agreements may cut wage increases and common fringe benefits like vacations and holidays. First-year cuts can be delayed, but must average at least $200,000,000 per year over the first three one-year periods beginning April 1, 1981. Savings are measured by comparing the new agreement’s cost to the cost of a national agreement or, until one exists, the United States Railway Association’s estimate of that cost.