Railroad Settlement AllowedA settlement reached following what was described as marathon negotiations prevented a rail strike on Friday. The agreement gives workers an increase of 24% over five years and an additional day off for personal use. It also modifies strict attendance rules to allow working hours that are not completed due to illness.The agreement does not offer paid sick days. This is a major concern for many railroad employees. This could cause the unions to reject arbitration, which would trigger the cooling-off period of 30 days.Land GrantsRailroad companies used large tracts of land granted to them by the government of the state and federal governments to help pay for the cost of building their lines. This provided them with an asset that they could use to back mortgage loans and sell bonds in the future. It also helped them attract settlers to the area that their lines would cross and increase the demand for their services.Land grants faced many issues such as corruption and abuse, but they ultimately helped the United States prosper, by developing a transportation network that opened up the West to settlement. Railroads facilitated programs for agriculture that helped farmers to succeed, and also increased the demand for railroad services.The federal government wanted to encourage the construction a transcontinental railway by offering large grants to private corporations. The federal government provided 130 million acres to the first five companies that constructed a transcontinental railroad and the states contributed 50 million acres.In order to obtain the land grants, railroads were required to surrender their rights to the lands they had acquired in aid of construction or as indemnity. These rights were generally founded on natural features such as rivers and streams however in some instances the boundary was marked by markers. Railroads were also permitted to select other public lands in lieu of grant land.ContractsRail transportation is a vital aspect of the economy, and it requires a high degree of reliability to keep the freight moving. A major rail strike could have slowed shipments and placed significant costs on customers. But with a combined $27 billion in net earnings, railroads can afford to make a dent in their revenue streams from passive sources and provide workers with paid leave and better work conditions. They just don't want.This year the unions and railroad executives broke down over issues such as worker benefits and work rules. The two largest railroad labor unions which include the Brotherhood of Locomotive Engineers and Trainmen and SMART-TD decided to reject the proposed contract, which offered 24% wage hikes and changes to the railroad's attendance policies that some believe are draconian.The unions would have preferred to negotiate an agreement on their own but this option was not available to them. They asked the National Mediation Board instead to declare an impasse, and then go to arbitration. This strategy, as shown by the recent vote for striking, has brought negotiations to political territory. Congress is now considering to impose a compromise contract to avoid the possibility of a rail shutdown. The bill would bind companies and workers to a contract that is labor-friendly Obama White House brokered.DisputesUnder the Railway Labor Act Congress and the President have the power to intervene in labor-related disputes involving transportation workers to prevent lockouts and strikes which stall the economy nationwide. However, it's rare for them to take action directly in such a case. Today, Joe Biden did just that. He signed a law that binds railroad workers and companies to the proposed settlement between the two parties. He declared that it was the right decision considering the possibility of a financial disaster that could strike at a time when the economy of the country is already in a slump.The agreement, which has to be ratified by workers, lays out 24% wage increases over a period of five years, and also includes medical leave and a cap on health care expenses. It also provides changes to the railroads' stifling attendance policies, allowing employees to take time off for medical reasons without being punished. Nearly all progressives in the House, including Alexandria Ocasio Cortez, Mark Pocan and Ilhan Omar as well as Pramila Jayapal, voted for the settlement.The agreement falls short of meeting some union demands, particularly the request for paid sick days. The railroads were clearly looking to avoid the risk of facing a furious Congress. Mr. Harris, head of the switchmen’s union, agreed that the idea should be pushed. The mediators who had made it a point to insist that they could only make recommendations if both sides suggested them, agreed to meet the demands of the union.SettlementsA settlement is a collection of people who reside within a specific area. railroad lawsuit settlements could be anything from a small collection of houses to an entire city and its surrounding urbanized areas. Settlement is also the term for the process through which a railroad settles freight. The process involves the distribution of revenue waybills and the determination of the division rate and section for each shipment. It also includes the agreement on a settlement amount as well as the method for collecting and reporting the revenue.A deal between workers, railroads and unions is a way to prevent a national strike by freight railroads at an important time as the nation is preparing for the winter holidays. It is an important move because a freight rail strike would cause economic disruption and increase inflation. The agreement also contains language that requires railroads provide employees with paid sick days. The president, who has been a long-time labor ally, has endorsed the plan and urged lawmakers to support the deal.The settlement will require all railroads utilize the Interline Settlement System to determine freight sections, rates, and sections. ISS is a system of electronic data exchange that allows railroads and other companies to exchange data on freight transactions. It will eliminate the majority of post-settlement disputes because it allows railroads to communicate electronically regarding shipping charges. It will also increase efficiency by reducing paper.