I'm surprised they didn't ask for inflation indexing for the future years. Which makes me wonder, how does accounting deal with retroactive pay increases?
Moderator: Jeff Smith
A national crisis was spawned for no better reason than an 88-year-old legal throwback to a bygone era of (to borrow a recent Bidenism) semi-fascist corporatism, which is the exact flavor of the Railway Labor Act amendments of 1934.
This obsolete law forces big government, big labor and big business into bed in a way that hardly makes sense anymore in a mostly free-market economy. If not for the law’s legacy, a nationwide strike encompassing the whole of the rail transportation system (33 private companies) would be all but unthinkable, much less the industry’s leverage to force the White House to dance to the industry’s exceedingly penny-ante economic disputes....... This is genuinely ridiculous, though it’s hardly surprising that, with the midterms coming up, the Biden administration felt the better part of valor was to award workers some additional sick days. Yet this week’s outcome almost guarantees that next time the railroads and the unions will be even less likely to reach terms without taking the economy and the occupant of the White House hostage.
Gilbert B Norman wrote: ↑Sat Sep 17, 2022 2:55 pmMr. B&A, hardly is labor insignificant; the retroactive settlement only is what I understood your inquiry to address.I believe that he was referring to derogatory comments made by railroad management about their workers. As if the workers had no value when it came to whether or not the company made a profit. A work stoppage would show the value that those workers add to the company.
Gilbert B Norman wrote:Would there be any benefit to doing an accrual for retro if you know it's likely?
Retroactive pay is simply booked when paid. Such would likely be "immaterial" to any reportable Financial Statements, however there could be a footnote within the Notes.
Restated Financial Statements ALWAYS "raise the Red Flags".
The third largest railroad union rejected its deal with freight railroads Monday — renewing the possibility of a strike that could cripple the economy — but before that could happen both sides will return to the bargaining table.
About 56% of the track maintenance workers represented by the Brotherhood of Maintenance of Way Employes Division union who voted opposed the five-year contract even though it included 24% raises and $5,000 in bonuses. Union President Tony Cardwell said the railroads didn’t do enough to address worker concerns about the lack of paid time off — particularly sick time — and demanding working conditions after the major railroads eliminated nearly one-third of their jobs over the past six years.
“Railroaders are discouraged and upset with working conditions and compensation and hold their employer in low regard. Railroaders do not feel valued,” Cardwell said in a statement. “They resent the fact that management holds no regard for their quality of life, illustrated by their stubborn reluctance to provide a higher quantity of paid time off, especially for sickness.”
By rejecting the deal, the BMWED will return to negotiations with railways, entering a “status quo” period where unions cannot strike until Nov. 19, five days after Congress reconvenes, the BWMED stated.Conveniently, this is after the elections. A lame duck House might be willing to do what they weren't willing to do in the lead up to the mid-terms 28 days from now.