Railroad Settlement AllowedA settlement reached in what was described as marathon discussions prevented a rail strike Friday. The agreement gives employees an increase of 24% over the next five years, as well as an additional day off for personal use. It also amends the strict attendance guidelines to allow missed sick days.The agreement does not provide paid sick days. This is a major problem for many railroad employees. This could force unions to refuse arbitration, which would trigger the cooling-off period of 30 days.Land GrantsRailroad companies utilized land that was granted to them by federal and state governments in order to cut costs of building their lines. They could then use the land to secure mortgage loans or sell bonds in the future. It also helped them attract settlers to the area where their lines would pass and increase the demand for their services.While there were a lot of issues with land grants, such as corruption and misuse of the system, overall they helped the United States prosper by creating an infrastructure for transportation which opened up the West for settlement. The railways supported programs for agriculture that encouraged farmers to succeed and increased the demand for railroad transportation.The federal government sought to encourage the construction of a transcontinental railroad by providing large grants to private companies. The federal government provided 130 million acres to the first five companies that constructed a transcontinental railway, and states contributed 50 million acres.In order to obtain the land grants, the railroads had to surrender their rights to the land that they had acquired in aid of construction or as indemnity. These rights were generally built on natural features such as rivers and streams but in some cases the boundary was marked by pointers. Railroads were permitted to choose other public lands in lieu of the grant land.ContractsRail transportation is an essential component of the economy and it requires a high level of reliability to keep freight moving. A major rail strike could have slowed shipments and placed significant costs on customers. With a combined net profit of $27 billion, railways are able to to sacrifice passive revenue streams to provide workers with paid leave and better working conditions. They just don't want to.Negotiations between unions and railroad management broke down this year over issues including worker benefits, work rules and the staffing levels. The two largest freight rail labor unions, the Brotherhood of Locomotive Engineers and Trainmen and SMART-TD decided to reject a proposed contract that offered 24% wage increases as well as changes to the railroad's attendance policies that some view as draconian.The unions would prefer to negotiate independently, but this option was not accessible to them. They urged the National Mediation Board instead to declare an impasse and go to arbitration. However, that strategy, as illustrated by the recent vote in favor of strike action, has moved negotiations into political territory. Congress is now considering to enforce a compromise contract and avert an imminent rail shutdown. The legislation would bind companies and workers to a deal that the labor-friendly Obama White House brokered.DisputesUnder the Railway Labor Act, Congress and the President are able to intervene in disputes between workers in the transportation sector to stop lockouts and strikes that hinder commerce across the country. But CSX Transportation settlement to see them engage directly in such a case. Today, Joe Biden did just that. He signed a bill to bind railroad companies and workers to the settlement that was proposed between the two sides. It was the right decision, he claimed, given the risk of an economic catastrophe that could have struck at an time when the nation's economy already is struggling.The agreement, which has to be signed by workers, will provide 24% pay increases over the course of five years. It also provides medical leave as well as caps on health-care costs. The agreement also makes changes to railroads' strict attendance policy, allowing employees with illness to miss work without being punished. Most of the House's progressives, including Alexandria ocasio-Cortez, Mark Pocan, Ilhan Omar, Pramila Jayapal and others, voted to impose the settlement.The agreement doesn't meet certain demands of the union. Particularly, the demand for paid sick leave. The railroads clearly wanted to avoid the risk of facing a raged Congress. Mr. Harris, head of the union representing switchmen, was in agreement that the idea should be discussed. The mediators, who had made it a point to insist that they would only make recommendations when both sides wanted to make them, agreed to meet the union's request.SettlementsA settlement is a group of people who live in a particular region. It can range from a small grouping of houses to a city and its urban areas. Settlement is also the method through which a railroad settles freight. The process involves the distribution of revenue-related waybills and the determination of the division rate and section for each shipment. The procedure also includes a settlement amount and the method for collecting and reporting revenue.A deal between workers and railroads prevents an all-out strike by freight rail at a crucial point as the country is preparing for the winter holiday season. It's a significant step because strikes on freight trains could cause economic disruption and increase inflation. The agreement also contains a clause requiring railroads to provide employees with paid sick leave. The president, a longtime labor ally, endorsed the plan and urged lawmakers on how to approve it.The settlement will require all railroad companies use the Interline Settlement System to determine freight rates, sections and sections. ISS is a system of electronic data exchange that enables railroads and other businesses to exchange information about freight transactions. It will stop most post-settlement disputes by allowing the railroads to exchange information about shipping costs electronically. It will also increase efficiency by reducing paper work.