Conrail Sale: Labor Aspects (CRS Report for Congress)
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| Release Date |
June 27, 1985 |
| Report Number |
IB85072 |
| Authors |
Alice L. Ahmuty, Economics Division |
| Source Agency |
Congressional Research Service |
Summary:
The Northeast Rail Service Act of 1981 requires the Secretary ofTransportation to sell the Federal Government's 85% interest in Conrail.Conrail employees own 15% of Conrail's stock. Conrail's 39,000 employees,through the Rail Labor Executive Association (RLEA), made a proposal to buyConrail, one of 15 proposals submitted to buy Conrail. RLEA, however, wasnot among the final three bidders for Conrail selected by the Department ofTransportation. These were the Alleghany Corp., the Norfolk Southern Corp.,and the Marriott Investment Group, Inc. (Norfolk Southern was ultimatelyrecommended to be the purchaser.) Conrail's management and some Members ofCongress favor a public sale of Conrail's stock. Rail labor has been innegotiations with the various bidders over three main concerns -- jobprotection, employee equity in the company, and payment of wage deferrals.In examining the issues in Conrail's sale, Congress most likely will considerthe welfare of Conrail employees as affected by the terms and conditions ofthe sale. Should negotiations on labor conditions with the final bidderfail, Congress might be asked to include labor conditions as part of anylegislation related to the sale of Conrail.
